MPIC may sell LRT1 stake due to continued losses

Metro Pacific Investments Corporation (MPIC) is considering selling its 35.8-percent stake in the operator of the Light Rail Transit Line 1 (LRT1), Light Rail Manila Corp. (LRMC).

MPIC Chairman Manny Pangilinan stated that the company is still losing money from LRT1, attributing the losses to the slow recovery of passenger volume post-COVID-19 pandemic and the government's denial of fare hikes.

In the first quarter of 2023, LRMC generated revenues of P595 million, a 73% increase year on year, but still recorded a core net loss of P83 million.

Analysts suggest MPIC's potential exit could test investor confidence in public-private partnerships (PPPs) for mass transit, raising questions about the long-term viability of private investment unless fare and regulatory frameworks are recalibrated.

LRMC incurred P828 million in losses in 2024, despite a 14 percent revenue increase to P2.88 billion, with expenses for upgrading the original LRT1 alignment and building a new line, including LRMC's assumption of P20 billion for the LRT1 Cavite Extension Project.