Accomplishment

LIGHT RAIL TRANSIT AUTHORITY

2017

Accomplishment

Table of Contents

Executive Summary 3

I. Operational Performance 6 A. Patronage 6 B. Train Availability 7 C. Trains Running 8 D. Load Factor 8 E. Service Performance 8 . Conveyance System 8 . Safety and Security System 9 . Passenger/Customer Service 14

II. Financial Performance 16 A. Gross Rail Revenue 16 B. Operating Expenses 16 C. Non-Rail Revenue 17

III. Concession Monitoring 18

IV. LRTA’s Performance Scorecard for CY 2017 18

V. Status of LRTA’s Major Projects and Initiatives 20 A. LRT Line Extension/Expansion Projects 20 B. LRT Rehabilitation Projects 22 C. LRTA’s Philippine Railway Training Center (PRTC) 25

VI. Good Governance Related Initiatives 26 A. Gender and Accessibility Related initiatives 26 B. Corporate Social Responsibility Initiatives 27

Conclusion 28 Way Forward 29

Annex A - LRTA’s Performance Scorecard for CY 2017 30

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Executive Summary

This report highlights the performance and major accomplishments of the Light Rail Transit Authority (LRTA) for the period ended 31 December 2017, focusing on Line 2’s Operational, Financial, and Administrative areas as well as on the agency’s Project Monitoring and Management and Good Governance related initiatives.

As of 31 December 2017, the LRTA achieved a weighted rating of 91.44% in its Corporate Balanced Scorecard based on a self-assessment performance report submitted to the Governance Commission for GOCCs (GCG), for its validation and endorsement. Last year, LRTA achieved an average rating of 92.9%, which is also undergoing validation by the GCG. These ratings are within the 90% GCG-mandated average weighted rating for its monitored GOCCs.

Over the past 33 years, LRTA marks a 5-Billion ridership patronage for its Lines 1 & 2 in October 2017, with LRT 2 sharing 16% of the ridership patronage or 801.04 Million since its operation in 2003.

In terms of daily and total ridership for the year, a slight decrease of 1.29% and 1.57%, respectively were recorded compared to the same period last year. They can be attributed to several external factors such as, among others, the increase in number1 of holidays, class and work suspension declared in 2017 comparing to last year and the implementation of K- 12 Program. On a positive note, the Authority was able to sustain last year’s number of 10 trains running in the revenue line.

1 Total of 22 declared Holidays, 8 Regular Holidays, 8 days class suspension

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On the financial front, Authority’s farebox ratio remains at a positive level of 1.04, and was 4% higher from its target of 1.00. This means that the revenue collection was able to sustain the operating expenses of the Authority.

Similarly, the concession monitoring functions, as performed by the Concession Agreement Monitoring Team (CAMT) and Fare Revenue Operations Group (FROG), continue to show a positive performance with the achievement of 96.26% compliance rating for the monitoring of Line 1 Secondary KPIs specified in the Concession Agreement. This is 1.32% higher compared to its GCG target of 95%. Meanwhile, the Automated Fare Collection System (AFCS) Concessionaire’s compliance rating to the requirements of the Service Level Agreement (SLA) was 90.64%2 or 0.71% higher than its target of 90%.

Significant accomplishments were also recorded in terms of the management of the extension and expansion projects. These include the successful completion of the construction of the viaduct and the groundbreaking ceremony for the Design and Build of Stations for the Line 2 East Extension Project. The construction of Row houses was also completed as well as the evaluation and relocation of 5853 Informal Settlers (ISFs) under Package 1 for the Line 1 South Extension Project. It was also within the year that the ground-breaking ceremony for the said project was done. Meanwhile, ten (10) Rehabilitation Projects were also completed during the year. Most significant among them is the delivery and installation of thirty-two (32) elevators and additional thirteen (13) escalators in the revenue line which afforded convenience and comfort to our passengers especially the senior citizens, persons with disability and pregnant women with children.

LRTA chronicled another milestone when it emerges as the First Railway System in the Philippines to be accredited by the Technical Education and Skills Development

2 Percentage of compliance to SLA provisions (No. of provisions complied ÷ Total number relevant provisions) x 100%) 3 Of the total 585 ISFs, 484 qualified beneficiaries were relocated in Brgy. Santiago, Gen, Trias Cavite. Of the remaining 101 ISFs, 5 qualified beneficiaries opted for Balik Probinsya, 4 families were disqualified by BSAAC, 7 families were relocated in NAIC, Cavite, 53 families opted for C5 Project (In City) relocation and 32 families where not present during the actual relocation but present during the conduct of census and tagging

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Authority (TESDA) for its competency-based program on Train Driving (Level II). Such initiative is an initial step towards the establishment of the Philippine Railway Training Center (PRTC), which aims to professionalize the railway system in the country.

With the continued efforts to improve customer experience, LRTA pursed various undertakings for the year. These include the transition of its Quality Management System (QMS) to the ISO 9001: 2015 Standard, the launching of the Passenger Assist Railway Display System (PARDS), in partnership with the Philippine National Police (PNP) for the campaign on Passenger Safety and Security, the formulation and adaption of a handbook/primer entitled “Gabay sa Maayos at Epektibong Paglilingkod sa mga Pasahero-Kostumer” which shall be used as a corporate training tool for all LRTA employees especially those who provide frontline services, and the continuous implementation/adoption of good governance related Initiatives in pursuit of better corporate governance practices.

Significant initiatives will be vigorously pursued. Among them, will be the soft operation of its PRTC which will mainstream the rail operation profession and will harness the skills and expertise of Railway operations and its technical personnel. Two (2) more technical courses such as Traffic Control and AFCS are up for accreditation in 2018 with proposed Public offering of the TESDA-accredited Train Driving Level II program by December 2018. The full-blown operation of the PRTC is expected to commence in FY2019.

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Light Rail Transit Authority ACCOMPLISHMENT REPORT As of 31 December 2017

I. Operational Performance A. Patronage

As of 4th Quarter 2017, LRTA ferried a total of 65.96 million passengers, 1.56% lower from last year’s recorded ridership of 67.00 million and 3.33% lower comparing to its target. The declaration of holidays, class and work suspension, the implementation of K-12 program, provisionary service4 during the period were among the factors that contributed to the decrease in ridership. Target ridership was affected with only ten (10) operational trains available compared to the twelve (12) trains targeted for the year.

Table 2. On a month to month comparison on LRT Line 2 Comparative Monthly Ridership 2016 vs 2017 Line 2’s ridership, March posted the highest Variance Month Actual 2016 Actual 2017 (%) percentage increase of 17.90% as compared Jan 5,773,982 5,905,227 2.27 to the same period last year. Such increase is Feb 5,670,901 5,569,411 (1.79) Mar 5,212,390 6,145,246 17.90 attributable to the annual Holy Week Apr 4,951,097 4,306,273 (13.02) May 4,898,407 5,195,670 6.07 maintenance works that were conducted June 5,177,705 5,030,154 (2.85) July 5,600,213 5,515,175 (1.52) last April 13-16, 2017, as compared to last Aug 5,846,969 5,729,986 (2.00) Sept 6,066,697 5,836,266 (3.80) year, which had been done in March. Oct 6,062,572 5,832,386 (3.80) Conversely, the lowest ridership for the year Nov 5,875,481 5,195,519 (11.57) Dec 5,866,260 5,696,344 (2.90) was posted in April due to the non-revenue TOTAL 67,002,674 65,957,657 (1.56) Note: Ridership includes free ride

4 1-day provisionary services - Cubao to Santolan vice versa

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operation of the Line 2 System in view of the 4-Day Holy Week Maintenance Works, the declaration of Holidays (Regular holiday and Special Non-Working Holiday) and school break.

On a five-year comparison, the lowest Figure 1. ridership patronage of Line 2 was registered 74 72.85 in 2015. Such decline is attributed to the 72 71.45

70 increase in fare that was implemented on 68 66.93 66 January 4, 2015 and the implementation of 64 65.97 62 62.21

RIDERSHIP the new automated ticketing system. 60 58 Ridership improved in 2016 and 2017 as the 56 2013 2014 2015 2016 2017 passengers were already accustomed to Year the current fare collection system.

B. Train Availability

As of December 2017, there were only (10), Table 3. Status of Train Availability out of the total eighteen (18) trainsets No. of No. of Non- Total No. Operational Operational operational, while eight (8) trainsets remain to of Trains Trains Trains be non-operational. Of these eight (8) non- 18 105 8 operational trains, four (4) are already being procured with spare parts for their restoration. The other (4) trainsets, which are beyond repair, are already included in the Agency’s Procurement Plan, for their replacement.

To address this issue, the management has initiated a long term plan to improve the train operation. With the on-going rehabilitation/restoration of the down trainsets, the procurement of additional fourteen (14) new trainsets is already in the plan with staggered delivery expected to start in 2019 and completed by 2021, in time for the operation of the Line 2 East extension.

5 9 trains operational, 1 train under R-Maintenance

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C. Train Running

Table 4. As of December 2017, the Line 2 System Status of Trains Running % Actual Actual sustained its 10 trains running in the revenue Target On For 2017 2016 line. This is 83.3% of the targeted 12 trains Target 2016 12 10 10 83.3% - running.

D. Load Factor

The load factor was registered at 61.17%, which Table 5. remains to be at its acceptable level of 55-65%. Load-Factor During Peak-Hour Inc./Dec While the recorded load factor of 61.17% remains Actual Actual Target For 2017 2016 at its acceptable range, with an increase of 2016 55%- about 7.09% from last year, the Authority 61.17% 57.12% 7.09% 65% continues to pursue the immediate procurement of additional trains and the rehabilitation of down trains to improve the train service provided to its customers.

E. Service Performance

 Conveyance System

With the completion and acceptance of the Table 6. Status of Conveyance System Contract for the Supply, Delivery, Installation, Non- Operational Total Operational Testing and Commissioning of the Elevators 32 - 32 Conveyance System last October 17, 2017, thirty-two (32) elevators and additional Escalators 39 19 58 thirteen (13) escalators in the revenue line are now fully operational. According to documented information, this is the first time that the conveyance system was replaced since the LRT Line 2 started operations in 2003. Of the nineteen (19) non-operational escalators, fourteen 14) are for replacement and now under the procurement stage.

The opening of thirty (32) elevators and thirteen (13) escalators in various stations last October 2017 headed by LRTA Administrator Berroya

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 Launching of Passenger Assist Railway Display System (PARDS)

On May 5, 2017, LRTA, in partnership with Trackmate Business Solution, Inc. (TBSI), launched the Passenger Assist Railway Display System (PARDS), which intends to provide the LRT 2 commuters with a REAL- TIME communication while on-board the train. The pieces of information displayed include, among others, train arrival/departure, train location, LRTA announcement features, proximity tagging and another necessary infotainment. The installed 400 sets of 19” LED monitor, 40 sets of GPS, 40 sets of CPU and 40 sets of CCTV Camera across ten (10) trainsets were part of the project’s scope.

 Safety and Security Service

Various initiatives, which aimed to further strengthen the safety and security of people and all LRT installations and facilities, were also accomplished this year.

MOA-Signing with PNP on Passenger Safety and Security (October 3, 2017)

One of the major accomplishments in terms of safety and security is the signing of the Memorandum of Agreement (MOA) on October 3, 2017 between the LRTA and the PNP held at LRT 2 Araneta Center Cubao Station. This partnership with the PNP aims to ensure the safety and security of the commuters. Under the Agreement, the campaign on safety and security awareness on criminal activities and crime prevention will be intensified. The establishment of women’s desk in selected LRT stations, conduct of emergency drills for LRT-2 employees, security personnel and passengers, increased police visibility during LRT 2

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operating hours and free ride for police officers in uniform are part of the Agreement, among others.

Other Safety and Security Related Initiatives

. Bomb Awareness Seminar and Introduction on How to use Bomb Blanket last December 14, 2017

. Workshop on Intensified Security Measures last December 01, 2017

. Installation of Additional X-Ray Machine a Legarda Station last November 30, 2017

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. Quick Response (QRT) Training conducted last October 30, 2017.

. Security Surveillance IPP CTV System Training conducted Last October 26, 2017.

. Procurement of 222 Additional Emergency Light for Depot and Revenue Line last October 25, 2017

. Security Education, Awareness and Target Hardening Task Group, Critical Infrastructure conducted last October 23, 2017.

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. Confiscation of deadly weapons during inspection at revenue line from January to October 2017.

. Attended Anti-Human Trafficking Seminar conducted last August 29 to 31, 2017 at MRT3 Training Room, EDSA,Q.C

. Security Surveillance IPP CCTV System Training Conducted Last August 11, 2017.

. . .

. MMDA Basic Emergency Response Course conducted last August 7 and 8, 2017.

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. MMDA’s Metro Wide Earthquake Drill conducted last July 17, 2017

. MMDA Public Safety Shake Drill last July 14, 2017.

. Hiring of 90 Additional Security personnel known as Securities Operation Assistant II last July 3, 2017.

. Bomb Awareness and Detection Seminar for LRTA Rail Marshalls conducted last July 2, 2017

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. Hosting by LRTA of the Transport Security Coordinating Council’s ( TSCC) Workshop last April 06, 2017.

. Installation and completion of CCTV Cameras at Depot and Revenue Line last February 2017.

. Trainings for LRTA Rail Marshalls: Security Awareness and Security Policy Basic Intelligence and Investigation Training conducted last June 29, 2017.

. Procurement and Implementation of Mandatory Drug Test for all LRTA

. Employees conducted last June 13, 14 and 16, 2017.

 Passenger/Customer Services

Based on the Customer Satisfaction Survery Results conducted by a third party consultant namely Market Relevance, the LRT Line 2 has achieved a weighted customer rating of 4.4% with an adjectival rating of “Satisfied”.

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Significant improvements in the level of customer satisfaction were recoded in terms of different service dimensions such as Trains, Station Facilities/Equipment, Safety and Security, Employees’ Perfrmance of front-line personnel, Customer Service and Ticketing Systems(AFCS). Below are the cited reasons:

Service Dimension Reason/s Trains Well maintained coaches with less technical problems . Increase in number of operational elevators and escalators Station Facilities at the stations. . Installation of restrooms in all stations . Installation of CCTV Camera, X-Ray Machines (Santolan and Safety and Security Recto) and walkthrough checks Employee Satisfaction . Efficiency in the delivery of quality/fast service . Availablity/accessiblity of LRTA hotlines, LRTA official Social Media accounts (Facebook & Twitter) Customer Service . Avaialblity of LRTA Customer Service- Public Relations Satellitte Offices (Recto and Cubao) and Help Desk at the revenue lines . Promptness in responding complaints ansd feedbacks

Ticketing System . Seamless ticketing system (Beep Cards) and Modernized (AFCS) Ticket Vending Machines and Automated Gates.

Note: Mean Rating used: 4.50-5.00- Very Satisfied; 4.00-4.49-Satisfied; 3.00-3.99- Can’t Say/Undecided if satisfied or not satisfied; 2.00-2.99-Unsatisfied; 1.00-1.99- Very Unsatisfied

On the other hand, the implementation of several customer satisfaction programs as spearheaded by the Business Development and Public Relations Department through its Public Relations Division, such as the regular updating of passenger services announcements in the LRTA website and other social media outlets for passenger complaints handling, conduct of dialogues with complainants, conduct of familiarization tours in LRT Line 2, and the preparation of promotional and other informative materials, such as brochures and posters for public information, are continually being implemented.

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II. Financial Performance

A. Gross Rail Revenue Table 7. 6 LRTA generated a total of Php Gross Revenue 2016 vs 2017 (In Billion Php) Variance (%) 1.272 Billion revenue from its rail Target Actual Actual For For 2017 2017 2016 operation or a slight decrease of 3% Target 2016 from its recorded Php 1.308 Billion for 1.325 1.272 1.308 -4% -2.75% the same period last year. This also fell short by 4% against its target of Php 1.325 Billion. The decline in revenue is attributed to the reduction of ridership patronage due to the following:

 Declaration of more holidays as compared to the previous year and higher cancelled trips (Code red) from five (5) in CY 2016 to fifteen (15) in CY 2017.  Implementation of K-12 Program due to the extension of high school year, hence potential riders for college levers will be affected.

B. Operating Expenses Table 8. Line 2 Operating Expenses CY 2016 vs CY 2017 The total operating expenses for Particulars 2017 2016 % Inc./Dec. the year rose by 5% or P 1.221 Materials 28,995,101 37,071,913 -22% Overhead 137,773,553 123,953,654 11% Billion7, compared to last year’s MaintenancePower 187,905,043 173,867,611 8% Php 1.167 Billion. Such increase is of LRT System 263,588,276 236,167,788 12% due mainly to the increase in PS 423,356,468 462,031,676 -8% MOOE 179,027,897 134,209,496 33% Overhead by 11%, maintenance TOTAL 1,220,646,338 1,167,302,138 5% of LRT 2 system by 12% and other maintenance and operating expenses by 33%. The implementation of the salary increase based on the GCG-approved 2nd tranche Modified Salary Schedule under Executive Order 201 retroactive January 1, 2017, per GCG authorization to adopt

6 Source: Tentative Statement of Financial Performance for the period ended December 31, 2017 (2nd Preliminary) 7 Source: Tentative Statement of Financial Performance for the period ended December 31, 2017 (2nd Preliminary)

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the Interim Compensation Framework under E.O No. 36, s. of 2017 and the payment of differentials based on several NCR wage orders for the Security Services and Maintenance Contracts, likewise, contributed to such increase. Table 8 shows the comparative Line 2 Operating Expenses (OPEX) for the year 2016 and 2017.

For CY 2017 only, the highest recorded expenditure is on Personal Services amounting to Php 423.36 Million, which is equivalent to 35% of the total OPEX while Materials expenses were at a minimal level, equivalent only to 2%, as a result of the minimal procurement on spare parts for the system.

The consolidated farebox ratio for the period under review is 1.04, which signifies that the ratio of the agency’s revenue to operations and maintenance expenses remains at a positive level.

C. Non-Rail Revenue

Significant increase Table 9. Non-Rail Revenue8 of 18% or P 269.86 CY 2017 vs CY 2016 (In Php) Million was recorded Variance Particulars 2017 2016 (%) for the non-rail Rental 102,717,206 108,543,925 -5% Income revenue collection Interest 166,462,096 118,992,139 40% Income compared to last Miscellaneous 681,365 971,182 -30% year’s collection of TOTAL 269,860,667 228,507,246 18%

8 Source: Tentative Statement of Financial Performance for the period ended December 31, 2017 (2nd Preliminary). The computation excludes Other Service Income- Concession Fee and Gross Availability Payment (AFPI).

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P 228.51 Million, for the period under review. The increase is attributable to the increase in interest income amounting to Php 166.46 Million, which is 40% higher compared to the same period last year.

III. Concessionaire Monitoring

With the Line 1 Operations & Maintenance and the implementation of the Unified Automated Fare Collection System for LRT Lines 1 & 2 and MRT 3 under the Public- Private Partnership (PPP) scheme, the Authority is now performing concession monitoring functions that focus on monitoring the compliance of the Concessionaires under the Concession Agreement (CA) for Line 1 Operation & Maintenance and the Service Level Agreement (SLA) for the AFCS Ticketing System.

IV. LRTA’s Performance Scorecard for CY 2017

As mandated by the Governance Commission for GOCCs (GCG), the Authority shall provide a framework in setting the organizational targets which will be the basis for the following9:

 Determining the grant of Performance-Based Bonus (PBB) and Performance- Based Incentives (PBl);  Determining whether Appointive Directors are eligible for reappointment as a component of the Performance Evaluation for Directors (PED); and  Ascertaining whether the GOCC should be reorganized, merged, streamlined, abolished or privatized.

To be eligible for the grant of the PBB, the LRTA must endeavor to achieve a rating of at least 90% in its Performance Scorecard including 100% compliance of all mandatory requirements for its officers and employees as well as the appointive Members of the Board of Directors to be entitled to a PBB.

9 GCG MC No 2017-02 dated 30 June 2017

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Based on a self-assessment of its performance for the period under review, the Authority has achieved an overall rating of 91.44% for its GCG commitments. The significant achievements are due to the following reasons:

 Achieved 100% completion of the construction of the viaduct for the Line 2 East Extension;

 Achieved target of “Satisfied” Rating from the recently concluded Customer Satisfaction Survey;

 Achieved target on the TESDA accreditation/registration of Train Driving Module;  Achieved target on the compliance rating for the performance monitoring of private concessionaires (both lines);  Achieved target on the 100% relocation/evaluation/facilitation of 585 ISFS under Package 1 for the Line 1 South Extension Project, and;

 Achieved target on Non-Rail Revenue10 collection.

Meanwhile, the commitment for the basic ROWA of the remaining 11 lots (Package 2) under Line 1 South Extension Project gained a zero (0) rating due to the non-completion /delivery of the project attributable to external factors that are beyond LRTA’s control, as follows:

 One (1) lot: Awaiting issuance of writ of possession  Ten (10) lots: For re-survey and preparation of Subdivision Plan as it was determined to be affected by the new alignment (Option C1-A) by the private concessionaire.

The comprehensive status of 2017 commitments can be gleaned in the attached LRTA’s Performance Scorecard for CY 2017, marked as Annex A.

10 Comprised of income from Commercial and advertising spaces, interest income and other miscellaneous income

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V. Status of LRTA’s Major Projects and Initiatives

A. LRT Line Extension/Expansion Projects

Several activities were conducted by the LRTA and DOTr to kick-off the construction of major extension projects. These include the Line 1 South Extension Project and the Line 2 East Extension Project, which are envisioned to expand, integrate and increase the capacity of the existing LRT lines for seamless transportation to provide a better delivery of service to the commuting public.

. Line 1 South Extension Project (SEP)

Groundbreaking Ceremony of LRT Line 1 South (Cavite) Extension Project (May 4, 2017)

Transportation Secretary Arthur Tugade led the groundbreaking ceremony on May 4, 2017 in Barangay San Dionisio, Parañaque City, along with officials of

the Light Rail Manila Corp. (LRMC), which won the Contract for the operation and maintenance of LRT-1 including the extension of 11.7 kilometers to Bacoor, Cavite with concession period of 32 years.

Construction of Row Houses – 100% Completed

A total of 1,698 row houses and amenities at the Gen. Trias, Cavite Relocation Site were completed last July 11, 2017.

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Relocation of 585 Informal Settler Families (ISFs) under Package 1- 100% Completed

A total of 484 qualified beneficiaries out of the 585 ISFs (Package 1) were relocated in Brgy. Santiago, Gen, Trias Cavite as of December 2017. However, of the remaining 101 ISFs, five (5) qualified beneficiaries opted for Balik Probinsya, four (4) families were disqualified by BSAAC, seven (7) families were relocated in NAIC, Cavite, 53 families opted for C5 Project (In City) relocation and 32 families were not present during the actual relocation but present during the conduct of census and tagging. Nonetheless, the LRTA through its PMO for the Line 1 South Extension Project, has successfully delivered the required activities for the relocation of 585 ISFs under Package 1. The total number of ISFs for relocation as per the Contract is 1,125 composed of Packages 1, 2 and 3. With the completion of Package 1, the remaining 540 ISFs under Packages 2 and 3 are targeted to be completed by 2018 with the assistance of LRMC.

Line 2 East Extension Project

Construction of Viaduct for LRT Line 2 East Extension Project (March 30, 2017) - 100% Completed

The construction covers the 3.793- km elevated viaduct from the end- point of the existing LRT 2 at Santolan, Pasig City to Masinag at Antipolo City, Rizal.

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Groundbreaking Ceremony for the Design and Build of Stations for LRT Line 2 East Extension Project (May 30, 2017)

Transportation Secretary Arthur Tugade led the groundbreaking ceremony on May 30, 2017, along with LRTA Administrator Gen. Reynaldo Berroya and other government officials, for the Design and Build of Stations component of the project.

B. LRT Rehabilitation Projects

The Authority has successfully completed ten (10) Rehabilitation Projects, which intended to address the problems of deteriorating rolling stocks, tracks and facilities to further enhance the safety and reliability of the LRT systems.

Project 1: Air-Conditioning System Scope: Upgrading and replacement of defective ACU at Line 2 mainline station.

Project Cost: PHP 2.355 Million Contractor: Western Marketing Corp. Date Accepted: January 24, 2017

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Project 2: Lightning Protection

Scope: Installation of lightning protection at Santolan Station Project Cost: PHP 9.605 Million Contractor: Industrial Controls Corp. Date Accepted: February 3, 2017

Project 3: Security Surveillance System (IP CCTV)

Scope: Supply, delivery, installation, testing and commissioning of Security Surveillance System (IP CCTV)

Project Cost: PHP 47.2 Million Contractor: Neo-Tech Asia Distribution Inc. Date Accepted: February 24, 2017

Project 4: Gantry Anchor Bolts

Scope: Systematic replacement of gantry anchor bolts at LRT 1 revenue line and connecting line.

Project Cost: PHP 104.762 Million Contractor: OKEJ-JV Date Accepted: March 1, 2017

Project 5: Covered Walkway

Scope: Construction of covered walkway at Santolan Station-East wing.

Project Cost: PHP 500,000.00 Contractor: GEM Engineering Supplies Date Accepted: March 25, 2017

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Project 6: Turn-Out

Scope: Replacement of turn-out at LRT Line 2 depot and revenue line.

Project Cost: PHP 8.380 Million Contractor: DAXI S.A.-Jantrade Industrial Sales, Inc. - JV Date Accepted: May 29, 2017

Project 7: Re-Railing Equipment

Scope: Acquisition of new re-railing equipment specifically for narrow spaces such as Katipunan station.

Project Cost: PHP 6.5 Million Contractor: KEMPAL Construction and Supply Corporation Date Accepted: July 7, 2017

Project 8: Rail Expansion Joints

Scope: Replacement of rail expansion joints at LRT Line 2 Depot and revenue line.

Project Cost: PHP 17.276 Million Contractor: DAXI S.A.-Jantrade Industrial Sales, Inc. - JV Date Accepted: July 7, 2017

Project 9: Brake Operating Unit

Scope: Refurbishment of Brake Operating Unit System of Line 2 Trainsets.

Project Cost: PHP 127.26 Million Contractor: MULTI-SCAN Corporation Date Accepted: July 12, 2017

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Project 10: Conveyance System

Scope: Replacement of 13 escalators at Recto Station and 32 elevators at 11 stations.

Project Cost: PHP 138 Million Contractor: JV of MAAN Construction Corporation and IFE Elevator Co. LTD. Date Accepted: October 17, 2017

C. LRTA’s Philippine Railway Training Center (PRTC)

TESDA Registration/Accreditation of Train Driving Module (Level II) on December 28, 2017

With the concerted efforts of the men and women of LRTA, the Authority received accreditation from TESDA on its competency- based Program on Train Driving (Level II) last December 28, 2017. LRTA is considered the first in the sector for railway systems to receive this accreditation. Two (2) more technical programs are targeted to be registered to TESDA by the 2018 and 2019 as initial steps towards the establishment of the PRTC.

Completion of Trainer’s Methodology Assessment on (August 19, 2017)

Conducted by TESDA, the assessment for Trainer’s Methodology (TMC 1) was successfully completed last August 19, 2017. The said activity is one of the requirements

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for the program accreditation (Train Driving Operation and Traffic Control) as an initial step towards the establishment of the PRTC.

VI. Good Governance-Related Initiatives

Continued adoption of the following: . LRTA’s CSC-approved Strategic Performance Management System (SPMS) for the performance evaluation of its officers and employees as well as the GCG Online Performance Evaluation System for the members of its Governing Board. . The customized LRTA “NO GIFTS” Policy and its Implementing Rules and Regulations (IRR), Anti-Red Tape Act, LRTA’s customized Manual of Corporate Governance, R.A 6713 (on SALN) and the customized Code of Conduct for LRTA Officers and Employees. . Adherence to the Law on Freedom of Information (FOI) with a customized FOI Manual already established and posted on the LRTA website. . ON-LINE APPLICATION of applicants to LRTA Permanent & Contractual positions established by the Human Resources Management Division (HRMD), in partnership with the MIS Division. . Continued streamlining of the approval process, cutting the processing time by 50% through updating of the Manual of Signing Authority and delineation of proper responsibility and accountability of officers and employees.

A. Gender and Accessibility-Related Initiatives

 Participated in the Gender and Development (GAD) National Planning last December 6-8, 2017 at Tagaytay conducted by the Philippine Commission on Women.  Participated in GAD Rail Sector Strategic Planning & Evaluation Seminar Workshop last October 25-27, 2017.

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 Participated in the Seminar on RA 8972 or the Solo Parents Welfare Act conducted by the Department of Social Welfare and Development (DSWD) last March 7, 2017 at Line 2 Depot, Santolan, Pasig City.  Joined the DOTr’s inspection team together with the Civil Society Group in the inspection of LRT facilities relative to the compliance with GAD- and Accessibility-related mandates/policies.  Conducted and actively participated in the campaign on Anti- Violence Against Women and Children (VAWC).  Continued collaboration with the civic action groups regarding programs and activities for the improvement of LRT facilities and services in cooperation with other DOTr Rail Sector Agencies. The members of LRTA’s GAD Focal Point System Committee-Technical Working Group actively contributed and participated in the design and development of the completed Web-based Online Monitoring and Evaluation Checklist on GAD Responsiveness of Railway Agencies, which will be launched in 2018.  Maintenance and improvement of the existing lactation and diaper- changing facilities at LRT 2 Cubao Station.

B. Corporate Social Responsibility Related Initiatives

 Conducted Bloodletting activities at Cubao Station last August 15, 2017 with a total of 95 blood donors.  Conducted outreach program at Cradle of Learners, Inc. last April 5, 2017 and Cottolengo Filipino Orphanage for Disabled Children last April 11, 2017.  Spearheaded the conduct of Clean-Up Drive last January 7, 2017 near the Line 2 Santolan Station as kick-off activity to promote cleanliness and prevent Zika, Chikonguya, Dengue within and outside the LRTA premises.

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Conclusion

For the year 2017, the Authority experienced various technical and operational glitches. However, it managed to sustain a “Satisfactory” rating as reflected in the Customer Satisfaction Survey conducted by a third party in December 2017. The improvement in the station facilities particularly the delivery of 32 operational elevators, and 13 escalators, enhancement of safety and security equipment, delivery of quality service by our front-line personnel, availability and accessibility of LRTA for the handling of passenger’s complaints and feedbacks and the modernization and upgrade of ticketing system are among the major factors which influenced the customer’s level of satisfaction. While the said rating was sustained, the LRTA continues its implementation of the much-needed rehabilitation of its ageing system as well as the replacement of those that are beyond economic repair. Foremost that is being acted upon is the immediate procurement of trainsets to augment the existing operational fleet.

The financial performance of the Authority remains at a positive level with a farebox ratio of 1.06. While the generated revenues could cover its operating and maintenance expenses, the Authority should continue exploring all avenues to develop potential commercial ventures to achieve financial sustainability. The initiatives to cut costs and other austerity measures, strict implementation of collection and marketing strategies for non-rail revenue must be continuously and vigorously pursued.

With the current operation and maintenance of the Line 1 System and LRT Line 2’s LRT AFCS Ticketing System under the helm of the private sector, LRTA is now performing its new role, the Compliance Monitoring of Concessionaires under existing Concession Agreements. To ensure the efficiency and competency of all LRTA personnel especially in the delivery of its core business, management and support services as well as in the monitoring of the performance of the private concessionaires, the capacity-building programs, particularly those under the Concession Agreement Monitoring Team (CAMT) and the Fare Revenue & Operations Group (FROG) must be carried out to further improve and strengthen capacities and competencies as required in their job/position.

Page 28 of 29 LRTA’s Accomplishment Report 2017

Way Forward

LRTA is currently pursuing a full-process scope 3rd Party certification to ISO Quality Management System 9001-2015 Standard in cooperation with the Development Academy of the Philippines. ISO certification is targeted to be achieved by CY 2018. This project intends to establish a Quality Management System aligned with ISO 9001 Standards with an end goal: To fulfill the needs and expectations of LRTA’s customers and interested parties and provide satisfaction in its services.

In the pipeline are significant initiatives pertaining to the establishment of LRTA’s PRTC, which will mainstream the rail operation profession and will harness the skills and expertise of Railway operations and technical personnel. Two (2) more technical courses such as Traffic Control and AFCS are up for accreditation in 2018 with proposed Public offering of the TESDA-accredited Train Driving Level II program by December 2018. The full-blown implementation of the PRTC is expected to commence by FY2019.

LRTA also envisions improved railway transport networks by FY 2020-2021 with the completion of three (3) major extension projects, namely, the Line 1 South Extension Project, Line 2 East Extension Project and Line 2 West Extension Project. Similarly, the level of passenger comfort and other operational KPIs such as, ridership, train availability, and train headway are expected to improve with the delivery of additional 14 trainsets and improvement of station facilities and equipment under the Systems and Facilities, Improvement, Modernization and Rehabilitation Program.

The railway operation will continue to face significant challenges. With Management’s Leadership, risk-based thinking being incorporated in its processes, continual improvement engrained to all, and conti nued teamwork, unwavering commitment and support of the men and women of LRTA, they can all be surmounted.

Submitted by: Approved by:

SIGNED SIGNED ELEANORE T. DOMINGO GEN. REYNALDO I. BERROYA Manager, Planning Department Administrator

Page 29 of 29 LRTA’s Accomplishment Report 2017

Annex “A”

LRTA’s Performance Scorecard for CY 2017

Page 30 LRTA’s Performance Scorecard 2017 LIGHT RAIL TRANSIT AUTHORITY

Baseline Data Component Target Actual (if applicable Rating Data

Objective/Measure Formula Weight Rating Scale Provider 2015 2016 2017

SO 1 Increased Passenger Ridership Increased 0% Absolute Figure Actual / Target x CAMT L1: 147.91 L2: - L2: 156.98 0%

SM 1 Passenger SOCIAL IMPACT (in Millions) weight Ridership 5% FROG L2: 66.93 L2: 70.00 L2: 65.96 4.71%

Sub-total 5% 4.71% SO 2 Improved Customer Satisfaction

Line 1 - 7.5%

Line 2- 7.5%

Customer Satisfied - 7.5% 'Partially 'Partially Actual Customer Satisfied Satisfied SM 2 Satisfaction 15% Partially PRD Satisfied Satisfied Rating Rating Rating 15% Improved Satisfied- 5% Rating Rating Neither Satisfied nor Dissatisfied- 0% Sub-total 15% 15% SO 3 Addressed Increasing Demands for the Existing Lines and New Mass Transit Systems Completion of 100% Construction of Percentage of 10% Actual / Target x PMO- L2 completion/ 100% CUSTOMER & STASKEHOLDERS SM 3 Viaduct (Line 2 N/A N/A 10% completion weight East construction completed East Extension of viaduct Project)

Page 31

LRTA’s Performance Scorecard 2017 Baseline Data Component Target Actual (if applicable Rating Data

Objective/Measure Formula Weight Rating Scale Provider 2015 2016 2017

A. One (1) lot: Awaiting issuance of writ of A. possession Acquisition Ten (10) Package 1- of 11 lots: For re- 100% remaining survey and

delivered preparation N/A lots- Package 2 of Subd. 0% Plan as it Line 1 South was Extension Project: determined to be Actual no. of lots Actual /Target x A. Acquisition of affected by acquired (In Absolute Weight PMO- the new Basic Right of 10% SM 4 Figure) Line 1 alignment Way (ROW) A. 5% SEP (Option C1-

B. 5% A) B. Relocation of Informal Settler Families (ISF) B. B. 5851 or CUSTOMER & STASKEHOLDERS Relocation 100% ISFs of (585) were - - Informal 5% evaluated Settler and Families facilitated

Sub-total 20% 15%

1 Of the total 585 ISFs, 484 qualified beneficiaries were relocated in Brgy. Santiago, Gen, Trias Cavite. Of the remaining 101 ISFs, 5 qualified beneficiaries opted for Balik Probinsya, 4 families were disqualified by BSAAC, 7 families were relocated in NAIC, Cavite, 53 families opted for C5 Project (In City) relocation and 32 families where not present during the actual relocation but present during the conduct of census and tagging. Page 32

LRTA’s Performance Scorecard 2017 Baseline Data Component Target Actual (if applicable Rating Data

Objective/Measure Formula Weight Rating Scale Provider 2015 2016 2017

SO 4 Ensured Delivery of Performance by the Private Concessionaire Compliance of Percentage of Concessionaire to compliance to Performance Secondary KPI Actual /Target x SM 5 Commitments (No. of Rectified 6% CAMT N/A L1: 97.88% L1: 95% L1: 96.26% 6% Weight under the Noncompliance ÷Total Concession No. of Noncompliance Agreement x 100%) Compliance of Percentage of Line 2 Automated compliance to SLA Fare Collection provisions (No. of 8% Actual /Target x SM 6 System (AFCS) FROG - L2: 90.06% L2: 90% L2: 90.64% 8% provisions complied ÷ Weight Concessionaire to Total number relevant Service Level provisions) x 100%) Agreement (SLA) Sub-total 14% 14% SO 5 Improved Efficiency and Reliability of LRT Systems and Processes Actual /Target x L1: 1 No. of projects Weight PMO- L1: 0 project L1: 1 project INTERNAL PROCESS Improve Systems L1:1 project project SM 7 completed 14% Rehab L2: 2 L2: 6 12.83% and Facilities L2: 4 projects L2: 5 (Physical Completion) Line 1- 7% Projects projects projects projects Line 2- 7%

Actual award / (total Budget Utilization 2 7% Actual /Target x Admin- - SM 8 APP - savings 60% 71% 69.15% 6.82% Rate Weight Proc Div. generated)

Sub-total 21% 19.65%

2 APP inclusion: GAA funded spare parts and rehabilitation projects. Page 33

LRTA’s Performance Scorecard 2017 Baseline Data Component Target Actual (if applicable Rating Data

Objective/Measure Formula Weight Rating Scale Provider 2015 2016 2017

SO 6 Sustainability of Financial Conditions Sustain Line 2 Gross Revenue/ Actual /Target x Finance 1.06 SM 9 Farebox Ratio of 8% 1.46 1.12 1.29 6.57%

Operating Expenses Weight Dept Not less than 1.00

HIP SM Increase in Non- Actual revenue Actual /Target x Finance 3 7 % P 268.17 M P 1,063.33 B P 233.07 M P 269.28 M 7%

10 Rail Revenue collected Weight Dept FINANCIAL STEWARDS Sub-total 15% 13.57% SO 7 Achieved Railway System Competency and Expertise Compe 696 out of tency Profile 772 Employees with Actual /Target x BOD of all Determined employees SM Competency competency gaps Admin- approved positions in Competenc or 90.15% 5% Weight 4.51% 11 Framework determined / Total HRMD Competency LRTA y Gaps for of number of employees Framework completed all positions competenc and y were established determined TESDA TESDA registration/ registration Creation of accreditatio Establishment of of Technical S.O 171 n of Train SM Philippine Railway Actual Admin- Train 5% All or Nothing N/A establishing Driving 5% 12 Training Center Accomplishment HRMD Driving the structure Level II LEARNING GROWTH AND (PRTC) Module last of PRTC Program on December December 2017 28, 2017 Sub-total 10% 9.51%

TOTAL 100% 91.44%

3 Comprised of income from Commercial and advertising spaces, interest income and other miscellaneous income Note: The LRTA CY 2017 Scorecard is subject to GCG’s review and approval. Page 34