Government Plans Privatization of LRT-2 Operations in 2025
The Department of Transportation (DOTr) is set to begin the privatization process for the operations and maintenance of the Light Rail Transit Line 2 (LRT-2) this year. Transportation Secretary Vince Dizon announced the plan, highlighting the need to improve the system through public-private partnerships (PPP).
Secretary Dizon emphasized that the government aims to place the LRT-2 under a PPP structure to address ongoing challenges. He noted, “You know, it’s not that easy to fix these systems. The long-term solution here is really to place systems like LRT-2 and MRT-3 under a PPP.” This approach is intended to speed up repairs and upgrades, which government agencies often struggle to execute promptly due to budget limits and procurement rules.
Challenges in Government-Run Transit Systems
Dizon explained, “As long as the government is the one operating these systems, we’re limited by the budget and restricted by our procurement rules. That means we can’t fix these systems quickly, which is why that’s the ultimate solution.” The PPP model offers the flexibility and funding necessary to improve service quality and system reliability.
The International Finance Corporation will assist the government with the LRT-2 PPP process, while the Asian Development Bank remains involved with the MRT-3 project. These partnerships aim to attract private sector expertise and financing to modernize the transit lines.
Fare Regulation Amid Privatization
Despite concerns that privatization might lead to exorbitant fare hikes, Dizon reassured commuters that the government will continue to regulate fares. “Entering into a PPP doesn’t mean that fare increases will happen just like that, because the government will still regulate the fares of our trains, including LRT-2 and MRT-3,” he said.
He added, “That’s why our fellow citizens can still expect that fares won’t become unreasonably high, even if a private entity takes over the operation of these train systems.” This commitment aims to balance improved service with affordable pricing for passengers.
Recent Service Disruptions Highlight Urgency
The urgency for privatization was underscored by a recent four-hour delay in LRT-2 operations caused by technical problems. To ease the inconvenience, the government offered free rides to affected commuters. Such incidents highlight the system’s need for more efficient management and maintenance.
The move to privatize LRT-2 operations marks a significant shift toward involving private partners in public transit, aiming to deliver better service quality, faster repairs, and sustainable management.
For more news and updates on LRT-2 privatization, visit Filipinokami.com.