The Department of Transportation (DOTr) is expected to soon submit its solicited bidding proposal for the operations and maintenance (O&M) of Light Rail Transit Line 2 (LRT-2) to government scrutiny, as part of a broader privatization effort in the country’s railways.

Transportation Undersecretary Timothy John Batan said on Tuesday, Sept. 23, that the feasibility study for the privatization of LRT-2 through public-private partnership (PPP) will be completed within “the next few weeks.”

The DOTr earlier tapped International Finance Corp. (IFC) as transaction adviser in the PPP deal, tasked to craft the guidelines and terms of reference (TOR) for the bidding process.

IFC, the Washington-based World Bank Group’s (WBG) private-sector lending arm, is also in talks with companies that have expressed interest in the project.

Once the feasibility study is completed, Batan said the DOTr will be able to submit the proposed bidding scheme for LRT-2 to the Department of Economy, Planning, and Development (DEPDev) for appraisal.

Under the law, DEPDev reviews the technical, financial, economic, social, and environmental aspects of projects submitted for evaluation, taking into account their potential impact on development.

Then-transportation secretary Vince Dizon said in June that the DOTr is targeting to start the bidding process for the privatization of LRT-2 within the year.

Dizon, who now heads the embattled Department of Public Works and Highways (DPWH), said earlier that ongoing efforts to extend the rail line have prompted the government to pursue its turnover to the private sector.

Letting a private firm handle the O&M of the 13.8-kilometer (km) LRT-2 is seen as a long-term solution to issues the government cannot fully address due to budget constraints.

In recent months, LRT-2 has been hit by multiple technical glitches that disrupted operations. Just last week, its Santolan station in Pasig City suspended operations for more than an hour after a train was derailed, affecting commuters during the early morning rush.

The privatization is also expected to ensure consistent funding to support the planned extension of LRT-2.

LRT-2, which connects Recto in Manila to Antipolo City in Rizal province, is planned to be extended on both ends.

Under the West Extension Project, the government is looking to add three more stops from Recto, with proposed stations in Tutuban, Divisoria, and Pier 4.

On the eastern side, the line will be extended from Antipolo station, with proposed stations in SM Cherry Antipolo, Blue Mountain, and Cogeo.

Meanwhile, Batan said the planned privatization of Metro Rail Transit Line 3 (MRT-3) is also on track.

“For MRT-3, we also have an ongoing feasibility study for a PPP, but we are hoping that there will be a private sector proponent who will submit a proposal for MRT-3,” he said on the sidelines of the 2025 Philippine Railway Conference.

The DOTr earlier extended its maintenance and rehabilitation agreement with Japanese conglomerate Sumitomo Corp. for MRT-3 until 2027.

Batan said the extended contract with Sumitomo will serve as a “stopgap” as the DOTr works to secure a private operator.

Acting Transportation Secretary Giovanni Lopez recently confirmed to Manila Bulletin that the concession agreement for MRT-3 is targeted to be awarded next year.

Further, Batan said the O&M contract for North-South Commuter Railway (NSCR) is set to be up for bidding by the end of September or, at the latest, early October.

The NSCR concession is expected to be awarded by mid-2026, he said.

Batan added that the DOTr is working to begin partial operations of the railway linking Clark, Pampanga, to Calamba, Laguna, by December 2027.