THE GOVERNMENT will privatize the Light Rail Transit Line 2 (LRT-2) via public-private partnership (PPP), with ridership growth and planned extensions underscoring the need for improved operations and maintenance, according to Transportation Secretary Vivencio B. Dizon.
At a virtual Palace briefing on Thursday, Mr. Dizon said President Ferdinand R. Marcos, Jr. has approved the PPP mode of privatization.
“For LRT-2, we have a plan to utilize PPP next year,” he said. “The International Finance Corp. of the World Bank is helping us to quickly PPP it.”
On Wednesday, the LRT-2 suffered an hours-long outage due to power issues, disrupting the morning commute of thousands of passengers.
A similar PPP is also being considered for the Metro Rail Transit Line 3, which is being prepared with the Asian Development Bank.
Unlike LRT-1, which is privately operated, LRT-2 is fully owned and operated by the government through the Light Rail Transit Authority. MRT-3 is a joint venture between the government and the Metro Rail Transit Corp.
Mr. Dizon said the bidding process for LRT-2 will begin soon, but did not give a timeline.
Although LRT-2’s ridership remains lower compared to other rail lines, Mr. Dizon said the PPP is timely.
He cited the recent extension of the line to Antipolo and a planned expansion toward North Harbor, which are expected to drive commuter growth.
He also reassured that the PPP will not automatically result in fare increases, noting that the government will continue to regulate train fares.
Last week, both the MRT-3 and LRT-1 experienced electrical issues that disrupted their operations. — Chloe Mari A. Hufana