2019 ANNUAL REPORT 01 Introduction 02 Company Profile 03 Board of Directors 04 LRTA Key Officials 05 Messages 06 Administrator’s Report Key Policy Issuances Operational Review Financial Review Service Performance Major Programs and Initiatives Implemented 2019 Performance Scorecard Other Important Milestones CONTENT 07 Corporate Social Responsibility 08 Good Governance 09 2019 Audited Financial Report Cover photo by jjopolicar19 INTRODUCTION he Light Rail Transit Authority (LRTA) is a wholly-owned government corporation Tmandated to be primarily responsible for the construction, operation, maintenance and/or lease of light rail transit systems in the Philippines by virtue of Executive Order (EO) No. 603, dated July 12, 1980, as amended. The Authority owns two (2) of the light rail transit systems in the country, which are both located in Metro Manila, namely, the LRT Line 1 and Line 2. Full operation of the Line 1 System was in May 1985. It was further extended towards the north in October 2010 with the construction of two (2) additional stations, Balintawak and Roosevelt, forming part of the twenty (20) stations of the Line. Meanwhile, Line 2 System which became operational in April 2004, has eleven (11) stations that traverse the Santolan, Pasig City to Recto, Manila corridor. Currently, the LRT Line 1 System is operated and maintained by the private concessionaire, Light Rail Manila Corporation (LRMC). Its ticketing system is now also being maintained by the private concessionaire, AF Payments, Inc. (AFPI) through a Public-Private Partnership (PPP) scheme where LRTA acts as the Public Transport Operator (PTO) under a Service Level Agreement (SLA) with AFPI. Thus, LRTA now operates the LRT Line 2 System only while its maintenance is outsourced to the Maintenance Contractor, Autre Porte Technique Global, Inc. Multi-Scan Corporation & Opus Land Inc., JV (referred to AMSCO-JV), which services commenced on December 19, 2018. With the foregoing developments, the operational and financial aspects reported are focused on the following functions of LRTA: the administration and management of the Line 2 System, the Concession Agreement monitoring of Line 1, its performance as a PTO under the SLA and its project management/supervision of the Line 2 East Extension Project and Line 2 West Extension Project as well as its share in the Government’s responsibility as regards the construction of the Line 1 South (Cavite) Extension that is under a PPP scheme. This report focuses on the LRTA Line 2’s operational and financial performance for the period ended December 2019 as well as the major Programs/Projects and Activities (PPAs) and Good Governance-related initiatives of the Authority implemented within the year. LRTA 2019 Annual Report | 3 02 CORPORATE PROFILE Photo by Gabriel Guttierez Charter Statement and Strategy Map Quality Policy “We commit to achieve excellence to meet the increasing demands for LRT systems and related services through continual improvement of our QMS and satisfaction of applicable legal requirements.” LRTA 2019 Annual Report | 5 LRTA CORPORATE GOALS Goal 1 Goal 2 Goal 3 Delighted customers that patronize Globally-competitive agency in urban Integrated railway systems that light railways as their preferred mode rail systems development, regulation provide multimodal connectivity of transportation in urban areas and management within and between urban areas Goal 4 Goal 5 Goal 6 Professionally managed and results- Financially sustainable organization Unified Light Railway System into an oriented organization with caring and administratively integrated nurturing culture producing world- organization class experts and leaders in the railway industry LRTALRTA 2019 2019 Annual Annual Report Report | 6 |6 1. Improve customer CORPORATE experience annually for existing LRTA owned QUALITY and/ or managed LRT lines as well as future OBJECTIVES lines. 3. Increase employees’ awareness and 2. Develop and understanding about the following: implement quality plans to promote gender Benefits of an efficient QMS equality, accessibility Importance of QUALITY and Efficiency and performance LRTA’s Quality Management System (QMS) excellence – its Processes, Procedures and their relationships/linkages within the QMS Risk-based Thinking Continual IMPROVEMENT 4. Capacitate employees and improve their skills and 5. Identify and implement continuous competencies improvement opportunities in all aspects of the LRTA QMS LRTA 2019 Annual Report | 7 03 BOARD OF DIRECTORS Photo by Mark Lester S. Cayabyab The two (2) Appointive Directors of the LRTA Board, Administrator and Private Sector, respectively, do not have other appointments as Directors in other Boards. The other seven (7) directors are in Ex-Officio character by virtue of their appointments as Cabinet Secretaries, and that as such Cabinet Secretaries they are Ex-Officio members of Board of Directors of as many as government corporations, bodies, instrumentalities and entities created by law and which their position as Cabinet Secretaries are made Ex-Officio members of said corporations, bodies, instrumentalities and entities. Private Sector LRTA 2019 Annual Report | 9 Sec. Arthur P. Tugade (DOTr) Gen. Reynaldo I. Berroya (LRTA) Sec. Mark A. Villar (DPWH) Designation: Chairman Designation: Member Designation: Member Date Appointed: Date Appointed: Date Appointed: October 2016 to Present July 2016 to Present July 2016 to Present Academic Qualifications: Academic Qualifications: Academic Qualifications Bachelor of Laws, San Beda Master of Business Management, Master in Business College of Law, cum laude; Post Philippine Christian University; Administration, University of Graduate Studies, National Command and General Staff Chicago Booth School of University of Singapore Course, AFPGSC ; Master in Business; Bachelor of Arts in (under NUS-Stanford Executive Management, University of the Economics, Political Science Program); AB Philosophy, San Philippines Institute for Small- and Philosophy, Wharton Beda College, magna cum laude Scale Industries; Terrorist Devices School of University of Disposal Course, (Cobol/ Fortran), Pennsylvania Professional Qualifications and PES-DND; Bachelor of Science in Other Affiliations: Management, Philippines Military Professional Qualifications Lawyer; President and Chief Academy and Other Affiliations: Executive Officer, Clark Congressman, Lone District of Development Corporation; Professional Qualifications and Las Pinas; Chairman, Founder, Perry’s Group of Other Affiliations : Committee on Trade and Companies; Partner, Bengzon, General Manager, Metro Rail Industry; (15th & 16th Verano, Tugade, and Escolin Law Transit (MRT) 3, Department of Congress, House of Transportation and Representatives); Vice Office Alternate Chairman: Communications (DOTC); Chairman, Committee on Usec. Timothy John R. Batan Undersecretary for Overseas Workers Affairs, Communications, DOTC; Assistant Labor and Employment, and Secretary for Special Concerns, Science and Technology (15th DOTC; Chief, Land Transportation & 16th Congress, House of Office (LTO); Director, Civil Representative); Managing Security Group (CSG); Regional Director, Vista Land and Director, Central Luzon Regional Landscapes; President, Crown Police Office; Director, Philippines Asia Corporation National Police (PNP) Intelligence Group; Chief, Anti-Drugs Task Force, CARAGA Region; Chief, Task Alternate Member: Force Lawin, Presidential Anti- Usec. Maria Catalina E. Cabral Crime Commission; Chief, Task Force Gemini, PNP; Provincial Commander, Pampanga Philippine Constabulary/Integrated National Police; Commander, Olongapo METRODISCOM; Battalion Commander, Reaction Strike Force BN; Deputy Chief and Executive Officer Commander, METROCOM Intelligence and Security Group; Chief, Narcotics Detection Branch CANU LRTA 2019 Annual Report | 10 Sec. Benjamin E. Diokno (DBM) Sec. Ernesto M. Pernia (NEDA) Sec. Carlos G. Dominguez III (DOF) Designation: Member Designation: Member Designation: Member Date Appointed: Date Appointed: Date Appointed: July 2016 to Present July 2016 to Present July 2016 to Present Academic Qualifications: Academic Qualifications: Academic Qualifications: Ph.D Economics, Maxwell School of Ph.D in Economic Demography, Post Graduate Studies, Stanford Citizenship and Public Affairs, Syracuse University of California, Berkeley, University Graduate of Business; University, Syracuse, New York, USA; USA; Master in Economics, Master in Business Administration, Master of Arts in Political Economy, University of Bridgeport, Ateneo de Manila University; John Hopkins University, Baltimore, Connecticut, USA; Bachelor of Bachelor of Science in Economics, Maryland, USA; Master of Arts in Arts in Economics, University of Ateneo de Manila University Economics, University of the San Carlos; Bachelor of Arts in Philippines; Certificate in Development Philosophy, San Carlos Major Professional Qualifications and Economics, University of the Seminary, magna cum laude Other Affiliations: Philippines-University of Wisconsin Businessman; Chief Executive, Program in Development Economics Professional Qualifications and Philippine Airlines; Executive University of the Philippines; Master of Other Affiliations: Director, PTFC Redevelopment Public Administration, University of the Economist; Professor Emeritus, Corporation; Director, United Philippines; Bachelor of Arts in Public University of the Philippines Paragon Mining Corporation Marco Administration, University of the School of Economics; Director- Polo Hotel,