MPIC shelves Light Rail Manila Corp. exit plan
METRO PACIFIC Investments Corp. (MPIC) will keep its stake in Light Rail Manila Corp. (LRMC) after the government began settling billions of pesos in obligations to the private operator of Light Rail Transit Line 1 (LRT-1), easing concerns over mounting losses.
LRMC President and Chief Executive Officer Enrico R. Benipayo said MPIC Chairman Manuel V. Pangilinan (MVP) has decided to maintain the conglomerate’s holdings in the company.
“Yes, MVP will maintain the status quo [in LRMC],” he told reporters on the sidelines of LRMC’s 10th anniversary on Thursday. “He is happy with the actions of the government.”
The decision follows moves by the Light Rail Transit Authority (LRTA) to secure a P3-billion loan from Land Bank of the Philippines to partially settle about P4 billion in obligations to LRMC. Of that amount, about P3 billion represents fare deficit payments owed to the concessionaire.
LRTA earlier said it has paid P926 million to LRMC.
Mr. Pangilinan earlier said MPIC was considering divesting its stake, citing continuing losses and ridership that had yet to fully recover to pre-pandemic levels.
“We are really happy that they are listening to us and they are trying to solve whatever issues we have,” Mr. Benipayo said.
LRMC took over operations and maintenance of LRT-1 in September 2015 under a P65-billion, 32-year concession agreement with LRTA and the Department of Transportation. Under the deal, the operator may petition for fare adjustments every two years.
In April 2025, the Transportation department approved LRMC’s fare hike petition, but the implemented rates were lower than what the company sought, resulting in a fare deficit of about P2.17 billion.
Ridership has improved alongside system upgrades and the opening of the Cavite Extension Phase 1 in 2024, which added five stations to the line.
Mr. Benipayo said average daily ridership has reached about 440,000 passengers, close to pre-pandemic levels of roughly 450,000 in 2019. He expects the line to average 450,000 daily riders by year-end.
Daily ridership had fallen to 350,000 to 370,000 in 2023, and stood at 323,000 in November 2024 before the Cavite extension opened.
MPIC holds a 35.8% stake in LRMC through Metro Pacific Light Rail Corp. Other shareholders include Sumitomo Corp. and Macquarie Investments Holdings (Philippines) Pte. Ltd. LRMC is a joint venture of MPIC, AC Infrastructure Holdings Corp., Sumitomo and Macquarie.
MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., along with Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of MediaQuest Holdings under the PLDT Beneficial Trust Fund, holds a majority share in BusinessWorld through the Philippine Star Group. — Ashley Erika O. Jose
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