Philippines: Manila LRT 1
Brief on IFC's PPP advisory support to the government of the Philippines a 32-year concession to build and operate the Manila LRT-1 Cavite Extension project.
Manila’s Light Rail Transit Line 1 (LRT-1) started commercial operations in 1984. It was the first LRT line built in the Philippines. Thirty years later, it continues to be an integral part of the urban transport system, carrying about half a million passengers daily along one of the densest traffic corridors in Metro Manila. But years of under spending on maintenance had taken a toll on the system with infrastructure fast deteriorating, the available train fleet significantly shrinking, and safety becoming an urgent concern. As part of a major public-private partnership (PPP) program, the government, through the Development Bank of the Philippines, hired IFC as the lead advisor on a PPP for the operation and maintenance of the existing Line 1 as well as the design, financing, construction, and operation and maintenance of a 12-kilometer extension to the southern district of Cavite.
The Light Rail Manila Consortium (LRMC), comprised of local and international companies, won the bid for a 32-year concession to build and operate the Manila LRT-1 Cavite Extension project. The concession agreement was signed in October 2014. The winning proposal included USD 200 million in upfront concession fees and a commitment to invest $925 million in the construction of the Cavite extension. Once complete, the project is expected to benefit more than one million daily passengers.
