Funding for P10 billion LRT-2 extension project sought

MANILA, Philippines — The Light Rail Transit Authority (LRTA) has asked the Department of Budget and Management (DBM) to start issuing funding for the P10-billion extension of the Light Rail Transit Line 2 (LRT-2).

In an interview with reporters, LRTA administrator Hernando Cabrera said the agency can begin the civil works for the LRT-2 West Extension project anytime.

However, Cabrera said the LRTA has yet to secure the multi-year contracting authority (MYCA) it is seeking from the DBM for the construction of the rail extension.

Last year, the Department of Transportation, on behalf of the LRTA, filed a request for a MYCA with the DBM. When approved, the MYCA will serve as the government’s commitment to fund the project every year by allocating an amount in the national budget.

“On the LRT-2 West Extension project, there remains the same problem: We don’t have funding yet. The consultancy services., the bidding documents, the rail design, we have completed all of them,” Cabrera said.

“We have even suspended the consultant because they are doing nothing right now. We directed them to scale down their work. We told them we are waiting for funding,” he added.

Cabrera hopes that the DBM issues the MYCA as soon as possible, especially as the agency has to address right-of-way (ROW) issues once the project enters the implementation stage.

The LRTA has to deal with the relocation of informal settlers residing inside the premises of the Philippine Ports Authority (PPA) to acquire the ROW for the project.

“We don’t have a problem with the ROW because our last remaining hurdle on that aspect is the area managed by the PPA. There are informal settlers living within PPA premises who would be affected by the project,” Cabrera said.

The LRT-2 West Extension project seeks to expand the rail line to the west of the Recto Station by at least three kilometers, putting up stops in Tutuban, Divisoria and Pier 4. It also involves the acquisition of 20 light rail vehicles to serve the additional ridership in the railway.

The project requires P10.12 billion based on the LRTA’s proposal, but the government has issued just one percent, or P106.58 million, as of Feb. 28.

The DOTr has decided to secure the budget for the LRT-2 West Extension project from the national government after initially considering offering it to the private sector or borrowing capital from a multilateral lender.