The operator of Light Rail Transit Line 2 (LRT-2) is banking on the upcoming privatization of the railway’s operations and maintenance (O&M) to improve service reliability and prepare for expansion projects.

The Light Rail Transit Authority (LRTA) said it is relying on the public-private partnership (PPP) project to undertake the much-needed modernization of LRT-2, which has been delayed for years due to budget constraints.

After more than two decades in operation, LRTA said the 17.6-kilometer (km) railway system has been serving passengers with an aging rolling stock fleet that requires increasing levels of maintenance.

At present, only 10 of the original 18 trainsets remain operational. Assessments conducted by consultants engaged by LRTA found that rehabilitating the other eight trainsets is no longer economically or technically viable.

The current headway, or interval between trains, on LRT-2 is estimated at 12 to 14 minutes—the longest wait among Metro Manila’s three urban railway lines.

“This limitation constrains the LRT Line 2 system capacity to effectively respond to increasing passenger demand and deployment of additional trips… thereby reducing service frequency and limiting overall operational flexibility and service reliability,” LRTA said.

The LRT-2 operator said it has attempted to procure additional trainsets since 2018, but limited government funding has repeatedly delayed the purchases.

This challenge also extends to structural upgrades of the railway. Earlier, LRTA requested a budget of ₱28.71 million for its structural rehabilitation project, but it did not receive funding under the record ₱6.79-trillion national budget for 2026.

To address these funding gaps, the operator said it fully supports LRT-2’s system rehabilitation, operations, and maintenance PPP project, which is expected to be offered through solicited bidding.

The project, which is expected to cost ₱41.9 billion, includes the acquisition of new trains, as well as the broader rehabilitation and modernization of LRT-2.

“This framework enables LRTA to leverage private sector capital and technical expertise, ensuring a more efficient, cost-effective, and accelerated delivery of new rolling stock and improved overall system performance,” the operator said.

According to the PPP Center, the Department of Transportation (DOTr) is still preparing the feasibility study (FS) for the project.

The DOTr has tapped the Washington-based International Finance Corp. (IFC), the World Bank Group’s (WBG) private-sector lending arm, as the transaction adviser for the PPP deal.

Turning over the railway’s operations and maintenance to the private sector is also expected to support expansion plans, including the LRT-2 West Extension project.

Under the project, LRT-2 will extend by more than three km west of Recto Station, with planned stops in Tutuban, Divisoria, and Pier 4. It also includes the acquisition of five additional trainsets to meet rising demand.

Based on LRTA data, LRT-2 recorded a 10-percent increase in passenger traffic last year to a record 58.75 million from 53.29 million in 2024.