Conglomerate Ayala Corp is re-evaluating plans to sell its stake in Light Railway Manila Corp. (LRMC), the operator of Light Railway Transit Line 1.
“For now, they told us they are supportive of the project,” LRMC president and chief executive Jose Ma Lim told reporters.
Aside from the upgrades being made on LRT line 1, Lim said Ayala Corp. also expressed support to the planned mall developments in various stations along LRT Line 1 from Monument to Baclaran.
Ayala’s plan to sell its stake in LRMC is part of its $1-billion asset divestment plan from sale of non-core assets, which it expects to complete this year.
The conglomerate earlier sold its stake in toll road to the Villar family, its water business to Razon group. It is also existing coal-fired power plants as part of its transition to a lower carbon portfolio.
Ayala in turn is scaling up its investments in emerging businesses such as AC Health and AC Logistics Holdings Corp. to develop new revenue sources.
LRMC is joint venture company of Metro Pacific Investments Corp. Metro Pacific Light Rail Corp. (MPLRC), Ayala Corp.’s AC Infrastructure Holdings Corp. (AC Infra), Sumitomo Corp. and the Philippine Investment Alliance for Infrastructure’s Macquarie Investments Holdings (Philippines) Pte. Ltd.
It assumed operations and maintenance of LRT 1 in September 2015 through a P 65-billion 32-year concession agreement with the Department of Transportation and the Light Rail Transit Authority (LRTA).
LRMC, however, has been upgrading LRT Line 1 with the planned extension to Cavite.
Phase 1 will add 6.2 kilometers and five stations to the existing LRT-1 line from Baclaran Station in Pasay City to Dr. Santos Station in Parañaque City and is scheduled to open by the fourth quarter of 2024.
Phase 2 consists of Las Piñas station and Zapote station, while the Phase 3 represents the Niog station.
The extension project, with a total project cost of P64.915 billion, is being financed through a hybrid model consisting of P17.80 billion in official development assistance (ODA) from the Japan International Cooperation Agency (JICA); P39.57 billion from LRMC; and P7.55 billion from the government.
