LRMC is a joint venture of Metro Pacific Light Rail Corporation (MPLRC) of Metro Pacific Investments Corporation, AC Infrastructure Holdings Corporation (AC Infra) of Ayala Corporation, Sumitomo Corporation and Macquarie Investments Holdings (Philippines) Private Limited (MIHPL) of the Philippine Investment Alliance for Infrastructure. It took over the operation and maintenance (O&M) of the LRT-1 in September 2015 as part of a 32-year, PHP 65 billion concession contract with the Ministry of Transport (DOTr) and LRTA, with operations awarded to RATP Dev. MANILA, Philippines (AP) — Following President Rodrigo Duterte, a lawmaker on the government-allied party`s list, on Monday called for an investigation into the alleged “unilateral” concession contract between the government and the Light Rail Management Corporation (LRMC), which operates tram line 1 (LRT-1). “The concession contract is very one-sided in favour of LRMC and it makes a mockery of our Constitution and existing laws. If my figures are correct, the gross revenues reported by LRMC in just four years are already higher than the project`s concession fees, while the government bears the financial impact of this agreement,” Yap noted. He complained that the concession contract could be extended to 50 years. “LRMC will work with the government if there is an investigation into their concession contract. LRMC remains committed to providing a safe, reliable, efficient and comfortable transportation service to the public moving around its area of operation,” Jacqueline Gorospe, the company`s head of corporate communications, said in a phone message to BusinessWorld on Monday. Duterte explained that Light Rail Manila Corporation`s concession contract with the government will be next on its list of contracts that are highly detrimental to the public and the government.
In its resolution, Yap said that in just four years, the LRMC reported gross sales that appeared to be “greater” than the project`s concession fee. Without specifying the specific amount, Yap said the LRMC`s gross revenues since 2015 “appear to be higher than the project`s concession fees, which could indicate unfair and unfair conditions that could place the financial burden of the agreement on the government.” “Provided that this agreement covers a period of 32 years, the gross revenues reported by the LRMC in just four years appear to be higher than the project`s concession fees, which may indicate unfair and unfair conditions that may weigh on the government financially,” the resolution reads. In a statement, the LRMC said it would “cooperate” if the Duterte government decided to open an investigation into its concession contract. In a speech in Davao City, Duterte said the LRT concession pact was being revised, noting that it was just one of the government contracts that the Pangilinans and Ayalas had exploited. Eric Go Yap, a representative of the Act-CIS party, said he would ask the House committees on public trust and good government to exercise their oversight role and review the concession agreement that President Duterte recently attacked. LRMC took over the operation of the LRT-1 in September 2015 through a three-decade concession contract with the Department of Transport and the Light Rail Transit Authority for £65 billion. On Monday, he filed a resolution to investigate the allegedly incriminating concession contract between the government and LRMC. The House of Representatives will have to join President Duterte in investigating the allegedly incriminating £65 billion concession contract for the maintenance and operation of Tram 1 (LRT-1), which has been awarded to the Ayala and Pangilinan groups. He said the four-year-old deal gives the company exclusive rights for 32 years, renewable at 50 years.
Duterte then began to make threats against the Ayala and Pangilinan families, prompting the two water concessionaires to abandon the results of the arbitration awards and stop demanding payment from the government. A congressman on the party`s list on Monday filed a resolution calling for an investigation into what he called a “unilateral concession agreement” between the government and Light Rail Manila Corp. (LRMC). Yap said the House of Representatives` investigation into the deal will include the extent of the involvement of government officials in carrying out the highly irregular deal. Lord. Yap of the ACT-CIS party`s list submitted House Resolution 647, which instructs the relevant House Committee to conduct an investigation into the said concession contract. President Duterte said Friday that he wants the government`s contract with the LRT-1 to also be reviewed, noting that it was also being exploited by businessmen who were initially criticized for allegedly “onerous” provisions in their companies` respective water concession agreements. .
