ANNUAL REPORT 2 0 1 4

LIGHT RAIL TRANSIT AUTHORITY COMPANY PROFILE LIGHT RAIL TRANSIT AUTHORITY LRTA Compound, Aurora Boulevard, Pasay City, Philippines 3 The Light Rail Transit Authority is recognized as the premiere rail transit in the country providing MESSAGES reliable, efficient, dependable, and environment-friendly mass rail services to all residents of Metro Manila. LRTA is a wholly owned government corporation created on July 12, 1980 under Executive Order (EO) No. 603, as amended by EO No. 830 dated September 1982, and EO No. 210 dated July 7, 1987.

A pioneer of the industry since 1984, LRTA has become the country’s prime mover in the rail transport sector serving the needs of millions of Filipinos by exploring avenues where the LRT system could continuously provide efficient transport services while promoting economy and efficiency of operations. “Strive to further enhance MANDATE QUALITY POLICY the quality of our rides” By virtue of Executive Order No. 603, the Light We, at LRTA collectively commit to continually Rail Transit Authority was created to be primarily work for excellence to address the increasing responsible for the construction, operation, demands for new LRT lines, for the preservation of our LRT maintenance and/or lease of LRT Systems in the systems and improve the delivery of quality urban mass Philippines. rail transport and related services inspired by LRTA’s Quality Management System. MISSION Toward this end, to achieve “Serbisyong Ayos”, To enhance public mobility and provide vital we shall ensure that: access to urban centers in the country through the development, design, construction, commissioning, • Organizational system and processes are operation and maintenance of world-class and efficient, effective and responsive to the needs MESSAGE FROM THE PRESIDENT integrated light rail transport systems with continued of the organization and stakeholders; commitment to excellence in service while maximiz- OF THE PHILIPPINES ing the opportunities for development and welfare of • Human resource are highly competent and our employees as well as the social, economic and en- customer-oriented; vironmental benefits for the nation. Transportation, and the infrastructure that supports it, are key pillars of a progressive nation. For 34 years, the Light Rail Transit Authority has taken on the responsibility of ensuring that millions of Filipinos reach their destinations VISION CORE VALUES • Physical resource are reliable and properly with ease and speed. Your job is not easy; as the number of commuters increase, so too does your mandate deepen. maintained; and The recognized leader While I comend you for successfully accomplishing 91% of your total performance comitment to the Governance Resilience • Financial resources are available and sufficient and expert in provid- Commission for GOCC’s, much remains to be done to ensure that the public transport system becomes a cornerstone, Integrity for operational requirements. ing integrated urban rather than a hindrance, to our ongoing revitalization. Professionalism rail transport systems Excellence The Quality Statements are appropriately of the country by I, along with the rest of the nation, am avidly watching your efforts to reform and improve the LRT system: The communicated to all employees through: 2020. rehabilitation and restoration of trains continue, especially as rail conditions deteriorate due to natural wear and tear. The public and your government rely on you to keep the lifeblood of the metro flowing. Strive to further enhance the • Orientation of newly hired-employees; and quality of our rides, that our citizenry may be left more capable of building the strong, inclusive Philippines that we all QUALITY PLEDGE • Provision of Quality Policy posters in strategic aspire to, one where the roads lead to opportunity and growth for all. area We, at LRTA, commit to comply with the requirements of the Quality Management System and The Quality Policy serves as guide for all continually improve our effectiveness in providing employees in the implementation and maintenance of quality urban mass rail transport and related services in the QMS. order to achieve our goal of SERBISYONG AYOS! BENIGNO S. AQUINO III President of the Philippines LIGHT RAIL TRANSIT AUTHORITY LIGHT RAIL TRANSIT AUTHORITY 4 LRTA Compound, Aurora Boulevard, Pasay City, Philippines LRTA Compound, Aurora Boulevard, Pasay City, Philippines 5 MESSAGES MESSAGES

“continue to sustain its dedication and commitment to the national economy through ever improved mobility”

MESSAGE FROM THE MESSAGE FROM THE DOTC SECRETARY ADMINISTRATOR

Congratulations to the entire Light Rail Transit Authority (LRTA) family for another year of successful operations.

Passenger ridership and demand continues to increase and I congratulate LRTA for providing reliable mass transportation to meet the need of the people.

The LRTA deserves due commendation for its hard work and perseverance to improve the quality of rail service. Its 34 years in service has proved the strength and stability of the agency, which others can look up to.

As LRTA traverses to new endeavors, may it continue to sustain its dedication and commitment to the national economy through ever improved mobility. I hope that the participation of the private sector will provide a strong partnership that will bring better results to the operations of the light rail systems for our people.

Again, congratulations! 2014 ANNUAL REPORT TABLE OF CONTENTS 2014 PERFORMANCE ACCOMPLISHMENTS MESSAGE FROM Light 3 THE PRESIDENT OF THE Rail PHILIPPINES Transit 4 MESSAGE FROM Authority THE DOTC SECRETARY

5 MESSAGE FROM THE ADMINISTRATOR

2014 PERFORMANCE 7 ACCOMPLISHMENTS

8 KEY ACCOMPLISHMENT

11 OPERATIONAL HIGHLIGHTS

18 FINANCIAL HIGHLIGHTS

23 STATUS OF LRTA PROJECTS

26 OTHER ACCOMPLISHMENTS

30 OUTLOOK

MAJOR PLANS 32 AND PROGRAMS

35 COMPANY PROFILE

39 KEY OFFICIALS

41 BOARD OF DIRECTORS

2014 APPROVED BOARD 46 RESOLUTIONS

59 AUDIT REPORT 8 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 9 KEY ACCOMPLISHMENT KEY ACCOMPLISHMENT For CY 2014, the Light Rail Transit Authority has successfully achieved a 91.0% accomplishment

out of its total performance commitment to the Governance Commission for GOCC’s (GCG). The table No. of Line1: 1/3 L1: N/A L1: 4/4 - Line1: 1/3 7.5% Rehabilitation 7.5% below shows each performance commitment with corresponding full year target and accomplishment. Quantity 4: projects Rehabilitation Engineering completed Performance Measures Baseline Data CY 2014 of LRTA Lines Department CY 2014 Accomplishme Rating per LRTA Line2: 16/18 8 7.5% L2: N/A L2: 4/4 Line2: 12 Line2: 17/18 0% Description Formula Weight Data 2011 2012 2013 Targets nt Line Provider

MFO 1: Sale, secure, responsive, and reliable LRT services provided Quality: Intensify Total Quantity 1: LRVs/Trains L1: 31 L1: 30 L1: 28 L1: 28 trains L1: 28 trains 7.5% Quality ISO Internal Sustain the available 7.5% trains trains trains Management accreditatio 2 Actual ISO Quality average Loop time ÷ (TQM) in light n activities 3 accreditation Final Gap Audit/Gap number of Headway Operations rail core 0% - - - launched on - 7.5% L2: 12 L2: 11 L2: 11 L2: 11 L2: 11 7.5% activity Assessment Assessment LRVs/Trains Department processes by 20 trainsets trainsets trainsets trainsets trainsets launched conducted running taking the first December by the DAP during peak steps towards 2013 1 hours ISO 9001 Quantity 2: Load Factor = accreditation Sustain load Peak load5 ÷ 7.5% L1: 77.01% L1: L1: L1: 90%-95% L1: 98.03% 6% factor4 to not No. of 90.21% 94.67% No. of L1: 7 L1: 7 L1: 4 L1: 3 L1: 3 more than train/LRV minutes per minutes minutes minutes minutes minutes 100% trips x Operations Timeliness 1: medical capacity of Department Improved emergencies Safety and 7.5% L2: 44.01% L1: L2: L2: 55-65% L2: 59.11% 7.5% train x 100% response time 5% Security 5% 48.12% 60.01% for medical Data to be Division emergencies9 derived from L2: 4 L2: 4 L2: 3 L2: 2 L2: 2 minutes minutes minutes minutes minutes Quantity 3: Average incidence Service interruption Report interruption time per time6 incident7 = L1: 12 L1: 9 L1: 10.84 L1: less than L1: 7.87 10% Timeliness 2: Average no. minimized (total service 10% minutes minutes minutes or equal to minutes Improved L1:10 days L1:10 days L1:5 days L1:6 days L1:3 days of days per interruption 13 minutes response time BD-PR customer 5% 5% time/ for customer Department requests/ frequency requests/ L2:10 days L2:10 days L2:5 days L2:6 days L2:3 days complaints count) complaints10 L1: Operations Above 17 Department Farebox Ratio mins=0% = Gross L1:1.10 L1: 1.28 L1: 1.26 L1: 1.06 L1: 1.18 14 mins 1sec Revenue ÷ Financial: to 17 mins=6% Operating Sustain the 13 mins 1sec 10% L2: 20 L2: 15 L2: 15.67 L2: less than L2: 9.88 10% Expenses L2: 0.85 L2: 0.88 L2: 0.91 L2: 0.87 L2: 1.00 to 14 mins=8% ratio of minutes minutes minutes or equal to minutes 13 mins and revenue t O & 19 minutes Note: Finance below=10% M Cost 15% 15% Implementati Department L2: (Farebox Ratio) on of the P5 Above 22 by not less mins=0% fare increase Conso: than one Conso: 1.14 Conso: 1.14 Conso: 1.00 Conso: 1.12 20 mins 1 sec would 1.01 (1.00)11 to 22 mins=6% increase the 19 mins 1 sec Farebox Ratio to 20 mins=8% for the year 19 mins and below=10% 8Originally, there were forty one (41) rehabilitation projects however, target was reduced to twenty one (21) projects due to the 1Peak Period - Morning and afternoon time periods when transit riding is the heaviest (7:00 am-9:00 am; 5:00 pm-7:00pm). Supreme Court’s ruling on DAP and are being re-prioritized under funding sources. Of twenty one (21) projects, three (3) are for 2Loop Time - Travel time of a train from origin to destination and vice versa (ex.: Baclaran-Roosevelt; Roosevelt-Baclaran). Line 1 and eighteen (18) projects are for Line 2. 3Headway - A time interval between trains moving in the same direction on a particular route. 9In coordination with the Philippine Red Cross (PRC). 4Load Factor - Capacity utilization and load comfortability of a train/LRV at any given time. 10There is a centralized complaints/requests handling for both line. 5Peak Load - The highest passenger load of a train at peak direction at any given time. (AM peak is 7am-9am; PM peak is 11Assumption is without fare increase. CY 2013 actuals were based from 2nd Preliminary Consolidated Income Statement submitted 5pm-7pm; Off peak is 9am-5pm) and also the ratio of passengers actually carried versus the total passenger capacity of to COA. CY 2014 actuals were based from Tentative Consolidated Income Statement for the period ended November 2014. train/LRV. 6Excludes uncontrollable events (fire, earthquake, typhoon, power failure, suicide, etc.) 7Average service interruption per year is the summation of all monthly average interruprtion in minutes. 10 LRTA 2014 ANNUAL REPORT 11 KEY ACCOMPLISHMENT LRTA 2014 ANNUAL REPORT OPERATIONAL HIGHLIGHTS PERFORMANCE ACCOMPLISHMENTS Subtotal of Weights: 90% 81.0% PATRONAGE

MFO 2: Railway Infrastructure Developed and Constructed From January to December 2014, LRTA has transported a total of 243.57 million passengers with a slight increase of 0.13% as compared to last year’s ridership. Line 1 has ferried a total of A. Expansion and Extension Program 170.73 million passengers while Line 2 carried 72.85 million riders. On a monthly comparison, both Line 1 South Extension Project lines have the highest increase in March 2014 but both experienced a decline in April 2014 due to the 4-day maintenance works during the Holy Week and school break. Timeliness: No. of lots 10% PMO-Line 1 N/A N/A 100% Fully Delivery of Delivery of 10% Preparatory delivered South Delivered nine (9) Lots nine (9) Lots Line 1 Line 2 Consolidated Stages in L1 (Package 2- Extension (Package 1) Actual Percent Actual Actual Percent South Extension Asiaworld to Project Actual 2013 Actual 2014 Percent Change 2013 Actual 2014 Change 2013 2014 Change Project Dr. Santos) January 15.11 15.31 1.32% 6.33 6.41 1.26% 21.44 21.72 1.30% Subtotal of Weights: 10% 10% February 13.85 14.06 1.51% 5.90 6.13 3.81% 19.75 20.18 2.20% March 13.04 14.64 12.33% 5.44 6.44 18.48% 18.48 21.09 14.14% TOTAL: 100% 91.0% April 13.66 11.47 -16.03% 5.16 4.59 -11.04% 18.82 16.06 -14.66% May 13.79 14.02 1.69% 5.20 5.56 7.07% 18.98 19.58 3.16% GENERAL ADMINISTRATIVE SERVICES (GAS) June 14.16 13.77 -2.79% 5.72 5.82 1.63% 19.88 19.58 -1.52% July 15.55 14.23 -8.48% 6.84 6.46 -5.65% 22.39 20.68 -7.61% Quantity 1: No. Of IDR Internal - 10/49 23/49 33/4912 33/49 Compliance to recommendations Audit August 13.97 14.70 5.21% 5.98 6.47 8.18% 19.95 21.17 6.10% Integrity implemented Department September 14.83 14.48 -2.40% 6.48 6.41 -1.07% 21.32 20.89 -1.99% Development October 14.67 15.22 3.77% 6.12 6.36 3.92% 20.79 21.58 3.81% Review (IDR) November 14.27 14.65 2.67% 6.05 6.34 4.76% 20.32 20.98 3.29% recommendations December 14.91 14.19 -4.85% 6.22 5.86 -5.86% 21.13 20.05 -5.15% Quantity 2: No. of stations Administrat 100% 100% 100% 100% 100% TOTAL 171.80 170.73 -0.62% 71.45 72.85 1.95% 243.25 243.57 0.13% Compliance rating compliant to ARTA ÷ ive Table 1. Monthly Ridership Per Line of LRT Stations to Total No. of Stations Department ARTA x 100% Based on a 5-year comparison, passenger ridership has been continuously increasing despite the internal and 12Cummulative Target external factors affecting the mode choice of the public. This only indicates that the riding public still prefers to use the rail system due to its affordable fare and time efficiency. Almost all performance measures were met except for the number of rehabilitation projects for Line 2 a. The non-revenue operation in and sustaining the load factor of within 90% to 95% for Line 1. High patronage of the system, as seen from observance of the Holy Week and the the ever-increasing ridership, has resulted to higher load factor. Line 1’s load factor has reached its highest at Passenger Ridership yearly maintenance works fall on March (5 Years Comparison) 105.95% during the 4th quarter resulting to an average of 98.03% for CY 2014. 28 to 31 in 2013; while in 2014, the same 300.00 On a positive note, the Authority was able to was on April 17 to 20 which resulted to minimize service interruption time to 6.86 minutes for Line 250.00 a high percent change for ridership between 2013 and 2014. 1 and 7.33 minutes for Line 2. In addressing 200.00 passenger complaints, the average number of days per 150.00 b. A -7.61% difference was noted customer complaints was also improved from 6 days to 2.5

In Millions between July 2013 and 2014 ridership days for Line 1 and 3 days for Line 2. Passenger complaints 100.00 due to the suspension of revenue 50.00 are being handled by the Public Relations Division. operation and class suspension caused 0.00 by the Typhoon Glenda in July 16, 2014. As to its financial standing, the Authority has 2010 2011 2012 2013 2014 Line 2 63.36 63.81 70.33 71.45 72.85 sustained a positive consolidated farebox ratio (ratio of c. Additional special non-working Line 1 155.91 156.93 170.72 171.80 170.73 revenue to operations and maintenance expenses) of 1.12. holidays were declared in August 2013 Consolidated 219.27 220.74 241.05 243.25 243.57 This means that the rail revenue generated by the LRTA for as compared to August 2014 resulting Figure 1. Passenger Ridership (5-Year Comparison) the year was able to cover the annual operating expenses to a high percent change in ridership. excluding expenses related to the on-going LRTA projects and interest expenses. 12 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 13 OPERATIONAL HIGHLIGHTS PERFORMANCE ACCOMPLISHMENTS

This year, Line 1 has a daily average passenger ridership of 475,798 while Line 2 has 201,794. For Reason / 2013 2014 Percent Charge Status Line 1, the highest ridership for a single day was recorded on January 10, 2014 with a total number of Cause 606,933 just after the Feast of the Black Nazarene. Thus, the all-time highest passenger ridership was Total No. of No. of No. of No. of From From recorded last February 28, 2012 with 658,627 passengers during the Iglesia Ni Cristo Grand Evangelical No. of Operati Non- Operati Non- Operati Non- Mission at the Quirino Grand Stand. At present, Line 1 has reached beyond its current offered capacity LRVs/ onal Operati onal Operati onal Operati during peak hours. Ideally, Line 1 can only accommodate up to 20,000 passengers per hour per direction Trains LRVs/ onal LRVs/ onal onal Trains LRVs/ Trains LRVs/ (PPHPD) using 28 trains at 100% capacity. However, based on statistics, the actual PPHPD for the year Trains Trains reached up to 21,197. Line 1 2.50% -4.17% 64 40 24 41 23 1st Gen (or +1) (or -1) Meanwhile, Line 2 has recorded the highest ridership of 281,231 on October 3, 2014 compared Awaiting Under OPERATIONAL HIGHLIGHTS OPERATIONAL to the all-time highest passenger ridership of 274,022 on December 6, 2013, both on normal commercial -11.11% 5.26% needed Precurem 2nd Gen 28 9 19 8 20 days. Unlike in Line 1, the Line 2 System can guarantee comfortable train ride with its current capacity. (or -1) (or +1) spare ent parts Process -6.82% 75% 3rd Gen 48 44 4 41 7 PERFORMANCE ACCOMPLISHMENTS PERFORMANCE Using the Annual Average Growth Method in Forecasting, the passenger ridership has an average (or -3) (or +3) growth rate of 3.71% (for Line 1) and 2.37% (for Line 2). Line 1 may have experienced high passenger ridership on a daily basis. However, statistics show only a 3.71% annual increase due to the lack of the Under mainten On-going required number of trains to accommodate the large influx of passengers. As a long-term effect, this -8.33% 16.67% ance and Line 2 18 12 6 11 7 preparatio scenario may lead to loss of opportunity for improved mobility among commuters, and loss of potential (or -1) (or +1) completi n of TOR revenue generation. As for Line 2, the 2.37% growth rate will not be a problem for the next ten (10) or more on of years, provided, that the current growth rate will be sustained, meaning, there will be no change on the parts external factors (e.g population growth, existing land use plan). Table 3. Number of LRVs/Trainsets

TRAINS AVAILABILITY Slow implementation of the project on rehabilitation of down trains is the root cause in the Line 1 Line 2 reduction of available trains: Target Actual Percent Change Target Actual Percent Change January 28 29 3.57% 10 12 20.00% • Rehabilitation of 10 down trains was included in the February 28 28 0.00% 10 12 20.00% Rehabilitation Project funded under the PhP 1.8 March 28 27 -3.57% 10 12 20.00% Billion Disbursement Acceleration Program (DAP) April 28 27 -3.57% 10 10 0.00% Fund in 2012. The procurement had been May 28 28 0.00% 10 10 0.00% undertaken by the DOTC but due to adverse COA June 28 29 3.57% 10 12 20.00% ruling, the project was reverted back to LRTA. July 28 28 0.00% 10 12 20.00% August 28 28 0.00% 10 12 20.00% • Due to the Supreme Court Ruling finding the DAP September 28 28 0.00% 10 11 10.00% as unconstitutional, projects under the 977 Million October 28 28Table 2. Trains0.00% Running During Peak10 Hours 11 10.00% fund were reprioritized, and the rehabilitation of November 28 28 0.00% 10 11 10.00% down trains were included in the PhP 1.3 Billion December 28 28 0.00% 11 11 0.00% Fund from the Budgetary Support to government AVERAGE 28 28 0.00% 10 11 12.50% corporations in 2013. Table 2. Trains Running During Peak Hours • The revised TOR for the restoration of 10 down trains was approved on June 2, 2014 and still under procurement process. 14 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 15 OPERATIONAL HIGHLIGHTS PERFORMANCE ACCOMPLISHMENTS 120.00% LOAD FACTOR Line 1 Line 2 100.00% The continuous increase in passenger ridership and the availability of the required number of trains Trains Load Trains Load during commercial operations define the load factor – a percentage factor of passenger load in a train at a 80.00% Running Factor Running Factor given period. For CY 2014, the ideal load factors for both lines were set within the range 90%-95% (for Line 2010 30 68.98% 11 39.91% 1) and 55%-65% (for Line 2). 60.00% 2011 31 77.32% 13 38.85% 2012 29 90.21% 11 47.98% 40.00% Line 1 Line 2 2013 28 94.67% 11 60.01% Target Actual Percent Change Target Actual Percent Change 20.00% 2014 28 98.03% 11 59.11% January 90%-95% 91.29% 1.43% 55%-65% 58.00% 5.45% Table 5. Comparative Load Factor Per Line (2010-2014) OPERATIONAL HIGHLIGHTS OPERATIONAL February 90%-95% 90.85% 0.94% 55%-65% 61.29% 11.44% 0.00% 2010 2011 2012 2013 2014 March 90%-95% 90.61% 0.68% 55%-65% 56.22% 2.22% Line 1 68.98% 77.32% 90.21% 94.67% 98.03% April 90%-95% 91.43% 1.59% 55%-65% 56.76% 3.20% Line 2 39.91% 38.85% 47.98% 60.01% 59.11% May 90%-95% 91.17% 1.30% 55%-65% 59.18% 7.60% PERFORMANCE ACCOMPLISHMENTS PERFORMANCE Figure 2. Load Factor Per Line (2010-2014) June 90%-95% 93.37% 3.74% 55%-65% 58.30% 6.00% July 90%-95% 99.90% 5.16% 55%-65% 57.72% 4.95% • For this year, Line 1 has recorded the highest load factor of 98.03%, not only for the past five years, but since its August 90%-95% 102.34% 7.73% 55%-65% 61.08% 11.05% commercial operation in 1984. September 90%-95% 107.60% 13.26% 55%-65% 60.38% 9.78% • Line 2’s highest load factor was recorded in 2013. October 90%-95% 105.19% 10.73% 55%-65% 58.57% 6.49% • It can be noted that for Line 1, failure to achieve the required number of trains running during peak hours resulted November 90%-95% 105.16% 10.69% 55%-65% 61.07% 11.04% to an increase in the load factor. The target load factor for Line 1 is within the range of 90% to 95%, but has al December 90%-95% 107.49% 13.15% 55%-65% 60.79% 10.53% ready exceeded target limits this year due to unavailability of trains. AVERAGE 90%-95% 98.03% 5.87% 55%-65% 59.11% 7.48% • The imposition of the speed limit from 60 kph to 40 kph due to the deteriorating rail conditions compounded the Table 4. Load Factor Per Line (Target Vs. Actual) problem At the end of the year, Line 1 has reached beyond its target range, with 98.03% as the annual average load •Meanwhile, the Line 2 system is still within its range of 55% to 65%. factor. The highest load factor was recorded in September 2014 at 107.60%. This indicates that passenger comfort was already being compromised. To address this, the Operations Department has continuously implemented the Passenger Limit Per Platform (PLPP) scheme. This aims to ensure that passengers waiting in the paid areas will get to board the train safely and comfortably by imposing limits upon entry to stations. This also prevented platform crowding that may lead to accidents.

On the other hand, Line 2 has experienced a reverse situation compared to Line 1. The load factor range for Line 2 was set within 55%-65%. Based on actual data, the annual average load factor for Line 2 was only 59.11%, which indicates that the number of trains and its capacity are more than sufficient to the volume of passengers riding the train. It only means that the Line 2 System will be able to accommodate future increases in the ridership. 16 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 17 TRAIN CAPACITY OPERATIONAL HIGHLIGHTS PERFORMANCE ACCOMPLISHMENTS (DURING PEAK HOURS) STATUS OF CONVEYANCE SYSTEM

Line 1 System Capacity Current Offered Actual as of Capacity December 2014

Number of trains 40 28 28

Capacity per train @ 100% 1250 1,250 1,250

Train trip per hour per OPERATIONAL HIGHLIGHTS OPERATIONAL 23 16 16 direction

PPHPD* 28,750 20,000 21,197

PERFORMANCE ACCOMPLISHMENTS PERFORMANCE *Passenger Per Hour Per Direction (PPHPD) Table 6. Train Capacity for Line 1

• Only 28 trains out of the total 40 trains are operational for Line 1. Down trains are usually due to lack or non-availability of spare parts due to obsolescence and/or delay in the procurement process • Consequently, less train trips were made during peak hours; thus, train capacity (train trip x capacity @100%) can only accommodate a PPHPD of 20,000. ELEVATORS Reason • As of December 31, 2014, the actual PPHPD is 21,197 which is 5.99% higher than the current offered capacity 2013 2014 Percent Change /Cause resulting to passenger discomfort as indicated in the previous table for load factor. Total Operational Non- Operational Non- From From Non- Operational Operational Operational Operational Line 2 System Capacity Current Offered Actual as of Capacity December 2014 -20% -50% Defecti Line 1 14 10 4 8 6 (or -2) (or -2) ve Number of trains 18 14 11 various -50% -50% parts Line 2 32 16 16 8 24 (or -8) (or -8) Capacity per train @ 100% 1,628 1,628 1,628 Table 8. Status of Elevators Train trip per hour per 18 18 11 ESCALATORS direction Reason/ 2013 2014 Percent Change Cause PPHPD* 29,304 22,792 19,160 Total Operational Non- Operational Non- From From Non- Operational Operational Operational Operational *Passenger Per Hour Per Direction (PPHPD) Table 7. Train Capacity for Line 2 -50% 62.5% Line 1 18 10 8 5 13 (or -5) (or 5) Defective • At present, Line 2 has 14 operational trains available during commercial operations (12 in operation + 2 reserves). various -10.6% 45.5% parts • If based on 14 trains @100% capacity, Line 2 can accommodate up to 22,792 PPHPD. Line 2 58 47 11 42 16 (or -5) (or 5) • The current passenger ridership has recorded a PPHPD of 19,160; thus to save on power cost, only 11 trains were used. Table 9. Status of Escalators • However, the Line 2 System has ensured that the 14 trains are made available once an increase in ridership occurs. • The maintenance of elevators and replacement of escalators of the Line 2 System are included in the Rehabilitation Project. These works are targeted for completion by the 3rd Quarter of 2016. • The Line 1 conveyance systems will be included in the Systems Upgrade/Enhancement Program of the Concessionaire. 18 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 19 FINANCIAL HIGHLIGHTS PERFORMANCE ACCOMPLISHMENTS FINANCIAL HIGHLIGHTS Gross Rail Revenue 350.00 GROSS RAIL REVENUE 300.00 For the period ended December 31, 2014, the total rail revenue generated by the LRTA amounts to PhP 3.498 Billion. The 0.61% or Php 21.34 Million increase as compared to last year is a result of the slight 250.00 increase of passenger ridership. The highest generated rail revenue was in January 2014 during the highest 200.00 ridership for the year. A monthly statistics with corresponding variance compared to last year is shown in the table and graph below. 150.00 FINANCIAL HIGHLIGHTS Line 1 Line 2 Consolidated In PhP Million 100.00 2013 2014 Variance 2013 2014 Variance 2013 2014 Variance 50.00 January 224.58 226.92 1.04% 83.89 86.26 2.83% 308.46 313.18 1.53% 0.00 JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC PERFORMANCE ACCOMPLISHMENTS PERFORMANCE February 203.65 206.35 1.33% 77.49 81.40 5.04% 281.14 287.75 2.35% Line 2 86.26 81.40 83.95 60.81 73.95 76.00 86.65 87.86 87.38 85.76 85.47 77.88 March 191.75 215.69 12.48% 70.38 83.95 19.27% 262.14 299.64 14.31% Line 1 226.92 206.35 215.69 171.42 208.51 204.68 210.51 216.73 213.62 224.19 216.91 209.08 Consolidated 313.18 287.75 299.64 232.23 282.46 280.68 297.16 304.59 301.00 309.94 302.37 286.97 April 203.09 171.42 -15.60% 67.99 60.81 -10.55% 271.08 232.23 -14.33% Figure 3. Gross Rail Revenue May 204.20 208.51 2.11% 68.72 73.95 7.60% 272.92 282.46 3.50% NON-RAIL REVENUE

June 208.05 204.68 -1.62% 77.87 76.00 -2.40% 285.92 280.68 -1.83% Recognizing the potential revenues that can be generated from non-rail business ventures, the Authority has intensified its focus on possible commercial avenues. As of December 31, 2014, Line 1 has generated a total of PhP July 227.99 210.51 -7.67% 90.98 86.65 -4.76% 318.97 297.16 -6.84% 171.33 Million while Line 2 has PhP 51.57 Million.

August 204.74 216.73 5.86% 78.92 87.86 11.33% 283.65 304.59 7.38% The non-rail revenue includes collection from rentals, dividends, miscellaneous and interest income. For this September 218.17 213.62 -2.08% 86.59 87.38 0.92% 304.76 301.00 -1.23% year, LRTA has the following number of accounts: seventy-three (73) on advertising spaces, twelve (12) on commercial stalls, thirteen (13) on access landing/road, six (6) on land lease/parking space, two (2) on laying of cable (ROW) and October 213.52 224.19 4.99% 80.40 85.76 6.66% 293.92 309.94 5.45% thirty-seven (37) on educational tour.

November 208.21 216.91 4.18% 82.91 85.47 3.08% 291.12 302.37 3.86% The total non-rail revenue as of December 31 2014 is a consolidated amount of PhP 222.90 Million.

December 218.81 209.08 -4.45% 83.75 77.88 -7.01% 302.56 286.97 -5.15% Line 1 Line 2 Consolidated 0% 0% January 8.54 6.38 14.93 TOTAL 2,526.76 2,524.61 -0.08% 949.88 973.36 2.47% 3,476.64 3,497.98 0.61% February 11.62 0.74 12.36 36% Table 10. Gross Rail Revenue (In Millions PhP) March 15.50 2.73 18.22 April 12.32 6.52 18.84 64% May 16.13 0.23 16.36 June 11.88 3.72 15.60 July 24.26 9.31 33.57 August 14.44 1.45 15.89 September 12.39 3.24 15.63 Rental October 19.27 10.60 29.87 Interest Income November 15.58 2.86 18.44 Dividend December 9.41 3.77 13.19 Miscellaneous TOTAL 171.33 51.57 222.90 Figure 4. Non-Rail Revenue Per Component Table 11. Monthly Non-Rail Revenue (In Million PhP) 20 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 21

The 2.51% increase in the consolidated operating expenses is due to the following factors: FINANCIAL HIGHLIGHTS PERFORMANCE ACCOMPLISHMENTS OPERATING EXPENSES 1. 39% increase in Materials due to the procurement of 906 pieces of cables with compression The consolidated operating expenses (OPEX) for the period ended December 31, 2014 is PhP 3.117 eyes, 6,900 pieces of contact wires, 1,150 pieces of pivot pins, 27 pieces of computer board, Million with an increase of 2.51% or PhP 76.35 Million as compared to December 2013. Direct Operating 50 pieces of ACM IGBT protection and 110 pieces of BN wheel tyre Costs include materials (spare parts and operations-related purchases), overhead (security services and utilities except Meralco), power and maintenance of the LRT Systems (payment for the Maintenance 2. 8% increase in Overhead due to payments for the repair of track brake assemblies, traction Contract). Other Operating Expenses are for the payments of personal services and maintenance and motor and compressor assemblies other operating expenses (MOOE) – Indirect Expenses.

FINANCIAL HIGHLIGHTS 3. 8% increase in the power consumption by PhP 18.49 Million OPEX Line 1 Line 2 Consolidated Materials 275.82 84.16 359.97 On a positive note, the implementation of austerity measures helped in improving costs on MOOE, Overhead 285.02 131.60 416.61 which decreased by 11.47% compared to 2013’s PhP 250.12 Million. The savings were generated from Power 414.84 246.82 661.66 the following:

PERFORMANCE ACCOMPLISHMENTS PERFORMANCE Maintenance 465.08 250.60 715.68 Personal •Communication Services Services 528.81 212.42 741.24 •Repairs of Service Vehicles MOOE 170.76 50.69 221.44 •Gas/Fuel TOTAL 2140.33 976.28 3116.61 •Office Supplies and Materials Table 12. Operating Expenses Per Line •Xerox Production and Materials •Water Utilization •Purified Drinking Water

7% 12% Line 1 Line 2 Consolidated Materials 24% 13% As of As of Overhead Dec As of As of As of As of Dec Power 2013 Dec 2014 Variance Dec 2013 Dec 2014 Variance Dec 2013 2014 Variance 21% Maintenance 23% Materials 153.52 275.82 79.66% 104.64 84.16 -19.58% 258.16 359.97 39.44% Personal Services MOOE Overhead 257.83 285.02 10.55% 128.12 131.60 2.72% 385.94 416.61 7.95%

Power 375.14 414.84 10.58% 235.74 246.82 4.70% 610.88 661.66 8.31% Figure 5. Operating Expenses Per Component Maintenance 465.71 465.08 -0.14% 268.46 250.60 -6.65% 734.17 715.68 -2.52% Personal Services 569.19 528.81 -7.09% 231.79 212.42 -8.36% 800.97 741.24 -7.46%

MOOE 180.29 170.76 -5.29% 69.83 50.69 -27.41% 250.12 221.44 -11.47%

TOTAL 2,001.67 2,140.33 6.93% 1,038.59 976.28 -6.00% 3,040.26 3,116.61 2.51% Table 13. Operating Expenses Per Line (In Million PhP) 22 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 23 STATUS OF LRTA PROJECTS PERFORMANCE ACCOMPLISHMENTS YEAR-ON-YEAR AND STATUS OF ON-GOING LRTA PROJECTS CURRENT YEAR COMPARISON LRT LINE 1 NORTH EXTENSION Current Year 2014 Increase/(Decrease) Reasons for Deviation PROJECT Particulars 2013 Actual Deviation 2013 - 2014 Actual Program Actual 2014 Program vs. Actual Amount % Amount % Target Actual Remarks EXPENDITURES Salaries and allowances of Original North Extension 100% Completion 99.34% The slippage of 0.66% is Personal Services 800.97 751.28 741.41 (9.87) -1% (59.57) -7% unfilled positions Project due to the delayed implementation of the MOOE FINANCIAL HIGHLIGHTS west walkway at 1. Some of the spareparts Monumento Station allocated for CY 2014 were Direct 1,989.16 2624.57 2,153.82 (470.75) -18% 164.66 8% because of the Right-of- not purchased and were slid to CY 2015; Way issue particularly the 2. Unpaid expenses because annotation of land titles as billings are not yet received; required in the MOA between LRTA and PERFORMANCE ACCOMPLISHMENTS PERFORMANCE Indirect 250.12 291.48 221.45 (70.03) -24% (28.67) -11% 3. Decrease in payment of all risk insurance payment Intraland. for CY 2014 due to pending implementation of PPP Common Station - - • Awaiting for the final Concept Design of Line No acquisition of tools and 1 Common Station from equipment was made, and Capital Outlay 54.09 158.19 34.39 (123.80) -78% (19.70) -36% the DOTC. the Computerization Project is yet for implementation. • The Supreme Court issued a Temporary Debt Servicing 2,925.66 4078.4 2,776.00 (1,302.40) -32% (149.66) -5% Foreign exchange difference Restraining Order (TRO) relative to the case filed Total 6,020.01 7903.91 5,927.06 (1,976.85) (92.94) by SM to LRTA and Table 14. Year-On-Year and Current Year Comparisons (In Million PhP) DOTC re: change of location of Common Station from SM North FAREBOX RATIO to Trinoma.

In summary, the LRTA was still able to maintain a positive farebox ratio of 1.12, which is beyond the target of 1.0. LRT LINE 1 SOUTH EXTENSION PROJECT Area Target Delivery Target for 2014 Actual Target per Actual for 1st Actual for 2nd Actual for 3rd Actual for 4th Actual as of Accomplishment Quarter Quarter Quarter Quarter Quarter December 2014 Right of Way Acquisition Line 1 1.06 1.27 1.07 1.29 1.23 1.18 Line 2 0.87 1.04 0.86 1.06 1.06 1.00 Package 2 34,875.50 December 2014 Full Delivery 100% Consolidated 1.00 1.20 1.01 1.21 1.18 1.12 Asiaworld to Dr. Table 15. Farebox Ratio Santos

2014 Target Actual Accomplifshment

Preparatory Activities

Procurement of Contract for the For approval by the LRTA Board of The procurement of the said Relocation Housing Units and Directors contract was approved in Amenities for the Informal December 2014 by the LRTA Settlers Affected by the Alignment Board. Posting and advertisement of the LRT – Line 1 Cavite (South) was made on December 23, 2014. 24 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 25 STATUS OF LRTA PROJECTS PERFORMANCE ACCOMPLISHMENTS PPP PORTION LRT LINIES 1 & 2 REHABILITATION PROJECT • On October 2, 2014, the Concession Agreement was signed between DOTC and Light Rail Manila For this year, a total of six (6) rehabilitation projects were set to be completed, one (1) for Line 1 Corporation which had a bid of P 9.35 Billion. and five (5) for Line 2. However, only five (5) out of the six (6) projects were completed. The following are the completed projects and their contribution to the improvement of the current systems: ODA PORTION Name of Project Purpose of the Project • DOTC-BAC issued the Notice of Award of Consultancy Contract for the Capacity Enhancement of 1. Installation of Fiber Optics Cable and Equipment The project added fiber optic network and SDH so Mass Transit Systems in Metro Manila Project (for the procurement of rolling stocks, expansion of with New Synchronous Digital Hierarchy (SDH) that the transport link of signalling and telecoms are the existing depot and construction of satellite depot) to CMX Consortium dated November 21, for Line 2 Signalling System and Packet Network independent thus will minimize or eliminate the STATUS OF LRTA PROJECTS OF LRTA STATUS 2014. for Telecoms Unified Communications signalling communication losses at the revenue line.

• Awaiting signing of the Consultancy Contract 2. Upgrading and Replacement of SCADA into Full The upgrade of SCADA increased the reliability of the Operational Capacity for Line 2 monitoring and controlling of supply, utility service PERFORMANCE ACCOMPLISHMENTS PERFORMANCE LRT LINE 2 EAST EXTENSION and telecommunication equipment of the system. PROJECT Manning of substation will no longer be necessary due to this upgrade. CIVIL WORKS 3. Rehabilitation of Katipunan Station Water Chiller The project restored the original operational Target Actual condition of the system, providing the essential ventilation and cooling system inside the Katipunan • Completion of Detailed Engineering Design for Completed and submitted the Detailed Engineering Station. civil works Design 4. Construction of Ventilation of Elevator Machine The project improved the ventilation of all the • Submission of Bidding Documents for the Completed and submitted the bidding documents. Rooms and Electrical Rooms at Line 2 Mainline Elevator Machine Rooms at the stations minimizing tendering of civil works Tendering started in September 2014. Stations equipment downtime. 5. Construction/Rehabilitation of Perimeter Fence This project augmented safety and security at Line 1 at Depot Area and Construction of CHB enclosure Depot and prevented unauthorized settlers from at the Ground Level of Connecting Line occupying the area beneath the carriageway thereby ELECTRO-MECHANICAL WORKS avoiding any untoward incidents.

Target Actual The uncompleted project for Line 2 is the procurement of 32 new units of driving gear which will be used • Start of drafting of Performance Specifications Drafting of Performance Specifications and Bidding during the mandatory overhauling of Line 2 trains. The driving gears were already delivered, but the Engineering and Bidding Documents for the tendering of Documents was not completed due to unavoidable Department is still testing the units. electro-mechanical design and installation delays in the awarding of contract for electro- contract mechanical consultancy contract.

CONSULTANCY SERVICES

DOTC-BAC issued the Notice of Award of Consultancy Contract for the Capacity Enhancement of Mass Transit Systems in Metro Manila Project which includes the Consulting Services for the electromechanical component of the Line 2 East Extension Project, to CMX on November 21, 2014. 26 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 27 OTHER ACCOMPLISHMENTS PERFORMANCE ACCOMPLISHMENTS Passengers in both lines are more satisfied with train services and related facilities as shown below: OTHER ACCOMPLISHMENTS FACILITIES LINE 1 LINE 2 Train Services PASSENGER-RELATED PROGRAMS ( i.e. availability, 43% 74% punctuality and reliability Continuous implementation of the Passenger Limit Per Platform (PLPP) Scheme for the safety and of trains) comfort of the LRT riders. Positive impact to the system and the passengers are the following: Train Facilities 48% 72% Station Facilities 36% 64% • Increased level of comfort. Decrease in congestion rate at platform paid area and inside the trains. Table 17. Percentage of Satisfied Passenger Per Facility

OTHER ACCOMPLISHMENTS OTHER • Enhanced general safety condition of the system. Pushing and shoving of passengers were minimized. • One train trip can accommodate all passengers waiting at the platform areas. Among station facilities, the availability of comfort rooms and conveying systems are rated the • Prolonged the serviceable life of rail tracks and rolling stocks. Wear and tear conditions were lowest. Safety and security measures being implemented are perceived as satisfactory but passengers PERFORMANCE ACCOMPLISHMENTS PERFORMANCE relatively reduced while waiting for the arrival of critical parts, specifically the wheels. clamor for more CCTV cameras, x-ray machines and walk-through metal detectors. Passengers of both lines are also satisfied with its customer relations services. The Light Rail Transit Authority conducted a Customer Satisfaction survey in Lines 1 & 2 in January In the December 2014 survey, the over-all satisfaction rating of Line 2 (46%) was lower by 10 2014. The same survey was conducted in Line 2 in December 2014 as part of the Authority’s preparation percentile points than that of the January 2014 (56%). for the ISO PARTICULARS January December certification. Very Satisfied 20% 8% In the January 2014 survey, Line 1 got an over-all satisfactory rating of 42% lower by 14 percentile Satisfied 36% 38% rating than that of LRT 2 (56%). It can be gleaned that more passengers are satisfied in Line 2 because of Satisfied or Dissatisfied 19% 41% its train system, equipment and facilities. Line 2 trains are bigger and equipped with the state of the art Dissatisfied 13% 8% technology and its stations are spacious, with conveying systems and facilities for persons with disabilities. Very Dissatisfied 12% 5%

Based on the above data, it is evident that passengers’ perception of the LRT-2 system and services slightly PARTICULARS LINE 1 LINE 2 declined. This can be attributed to defective facilities such as elevators and escalators, train breakdown, recurring Very Satisfied 3% 20% ticket problems and train’s poor air conditioning system. Satisfied 39% 36% Satisfied or Dissatisfied 43% 19% The decline in satisfaction rating can also be associated with the announcement of fare hike since the publication of the DOTC Department Order announcing the fare adjustment was made while the survey was being Dissatisfied 12% 13% conducted. Very Dissatisfied 3% 12% Table 16. Result of Customer Survey Per Line 28 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 29 OTHER ACCOMPLISHMENTS PERFORMANCE ACCOMPLISHMENTS •Conducted 47 familiarization tours participated by 3,281 students from various schools/colleges/ universities ON-GOING STUDIES •Developed a mobile phone application where information about the revenue lines and stations, and fare calculation is readily available Name of Study Purpose of the Study Status as of December 31, 2014 •Enhanced the social media accounts and established a centralized Customer Service Center/Help Desk for 1. Feasibility Study on To determine the feasibility of On-going conduct of feasibility Lines 1 and 2 passengers the Blue Line Bus putting a bus feeder system that will study. The two pilot testing •Disseminated relevant information on operations, programs and projects to passengers and stakeholders Feeder Services serve as an auxiliary service to the activities were conducted for the through various media outfits Project riding public and improve on-going feasibility study. •Partnered with 130 government and non-government agencies for placement of tarpaulins, posters and accessibility of the LRT Line 2 other information materials 2. Feasibility Study on To establish a Railway Training The draft concept paper was

OTHER ACCOMPLISHMENTS OTHER •Explored possible partnership with Art Canvass for installation of art banners at selected LRT 1 and 2 the Establishment Institute that would serve as the submitted to the OIC, Planning stations of the Philippine center for competency Department for review and •Compliant with the requirements of the “Anti-Red Tape Act of 2007” through the posting of information Railway Institute enhancement, skills training and comments.

PERFORMANCE ACCOMPLISHMENTS PERFORMANCE boards on the procedures for frontline service transactions and the printing of Citizen’s Charter Handbook innovation that is placed in all station booths as certified by the Civil Service Commission. 3. National Railway The NRDRMP will establish a rail A compendium of collected railway •Conducted Gender and Development (GAD) related seminars and activities such as Lecture on Development transit network/master plan that related studies was completed and Anti-Violence Against Women and their Children (RA 9262) Roadmap and will identify future extension/new submitted to the Administrator on Master Plan lines within and outside Metro November 12, 2014. KEY POLICY ISSUANCES (NRDRMP) Manila. Upon completion of the master plan, pre and full blown In support of the commitments and priorities expressed by the Administration, LRTA made the following policy feasibility studies will be conducted issuances: to determine economic and financial viability per line/alignment •The Implementing Rules and Regulations (IRR) for the Policy on Giving and Acceptance of Gifts and Benefits was approved on August 18, 2014. •The LRTA’s Revised Code of Governance was furnished to the LRTA Board of Directors on December 29, 2014, for review and comments. CORPORATE SOCIAL RESPONSIBILITY •Implementation of 3R’s (“Reduce”, “Re-use” and “Recycle”) by reusing/recycling used materials such as bond papers, folders, etc., and the systematic disposal of non-recyclable items.

•Collaboration with the Association of Philippine Volunteer Fire Brigades, Inc. and the Philippine Red Cross in providing trainings to frontline and security personnel to promote awareness and readiness at the revenue lines ensuring passengers’ safety and the systems’ reliability during emergency situations.

•Employees’ involvement in the well-being of the public and the community that LRTA serves through conduct of Christmas Gift Giving and Donation to 35 cancer patients at the Philippine Children’s Medical Center (PCMC) led by the Planning Department-MIS Division on December 18, 2014. OUTLOOK AND LRTA 2014 ANNUAL REPORT 31

2015-2020 PLANS AND PROGRAMS OUTLOOK This year, the Authority has experienced challenges, particularly in Line 1, in terms of providing a safe and reliable rail service vis-à-vis the continued patronage of the system as evidenced by the increase in passenger ridership. In the midst of this challenge, the Authority gave all its efforts by first, implementing mitigating measures through the PLPP scheme. This may have resulted to passenger queuing, but it has also ensured that the passengers waiting in the paid areas could board the train safely and comfortably. Cognizant that the PLPP is just a temporary measure, and that rail safety and fast time travel are the foremost priority, the Authority is exerting its best efforts to fast-track the on-going rehabilitation activities focusing on the rail replacement and the restoration of down trains. Once rail replacement is completed, the ideal train speed limit of 60 kph will be resumed from what is currently implemented speed limit of 40 kph. Unnecessary movements during travel will also be reduced. Once all down trains become operational, LRT Line 1 would be able to offer a more comfortable train ride with the improvement in the load factor. Likewise, more passengers can then board the train at a given period.

The DOTC and LRTA also opted to implement the concessioning out of the operations and maintenance of the Line 1 System to tap the private sector’s expertise to improve the quality of service in the rail industry. In this way, both sectors will benefit accordingly with an improved efficiency in rail service.

In order to achieve a successful public-private partnership, the LRTA, as a strong oversight agency will protect the interest of the riding public by ensuring that the high levels of service and safety standards shall be observed.

Moving forward, the LRTA is looking for possibilities to construct new light rail systems within and outside Metro Manila not only to improve mobility but also to promote a unified mode of mass transit which is cost-effective and environment-friendly. The LRTA will also explore new business ventures like managing bus passenger feeder facilities that will provide commuter access to the LRT systems.

The LRTA will also explore the establishment of a railway institute that will mainstream the rail operation profession. This will be a training center that will harness the knowledge and skills of operations personnel as well as systems auditors to provide and ensure a high quality of rail service comparable to other countries. A research and development facility is also envisioned to introduce localization of spare parts and reduce cost on importations and increase reliance to domestic markets.

To make all these to happen is the sole commitment of the Authority. This will require whole-hearted dedication, enthusiasm and support not only within the LRTA Family but also from the government and the public. 32 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 33 MAJOR PLANS & PROGRAMS MAJOR MAJOR PLANS AND PROGRAMS PLANS/ FOR FY 2015-2020 PERSPECTIVE STRATEGIC IMPLEMENTING STRATEGIES PROGRAMS/ OBJECTIVES ACTIVITIES PLANS/ Increase PERSPECTIVE STRATEGIC IMPLEMENTING PROGRAMS/ efficiency and Pursue ISO Certification Achieve and maintain ISO OBJECTIVES STRATEGIES ACTIVITIES reliability of LRT 9001:2008 certification Conduct an annual Third Party systems Survey on Customer Internal Process Establish a Rail Ensure safe, secure, Satisfaction to measure the Development Program, responsive and reliable LRT over-all efficiency of the which covers the services in LRTA-owned and services provided by LRTA and Extend and Construction of new lines and development of the MAJOR PLANS & PROGRAMS managed systems its concessionaire/s. Results expand existing extension of the existing systems National Railway shall be used to implement LRT lines Development Road Map and Corrective/Preventive Actions Master Plan, Feasibility Carry-out collaboration Studies, and the initiatives with other construction of new lines Overall Service stakeholders such and extension lines based Stakeholders Efficiency Improved Collaborate with other concessionaires, the Phil. Red on the Master Plan stakeholders Cross, the PNP, and other gov’t Pursue Charter and private partners through Increase LRTA capitalization Amendments to increase partnership-building activities LRTA capitalization from Php Implement a Safety and 30 Billion to Php 300 Billion Security Modernization Explore new avenues to Enhance/upgrade LRT safety Program, which includes the generate additional non-rail and security services provision of revenue, such as the enhanced/upgraded safety and establishment of the security equipment and following: facilities Financials Sustain financial 1. Philippine Railway Carry out the Rehabilitation Complete the Rehabilitation conditions Institute; & Upgrading of LRT Systems Projects to improve systems’ Engage in new business ventures 2. Railway Personnel capacity Licensing and Enhance/Upgrade and Implement Computerization Certification Center; Integrate ICT systems and Program, which covers the 3. Research and Increase efficiency equipment to improve over- provision of various ICT Development Center; Internal Process and reliability of LRT all efficiency equipment for the year 2015- 4. BRT and other systems 2020 passenger feeder Enhance/Upgrade and Carry out Automation and systems; and Integrate ICT systems and Systems Integration Program, 5. Utilization of assets equipment to improve over- which covers processes for all efficiency automation and systems business/commercial integration, and the conduct of activities maintenance and the necessary updates for the succeeding years. 34 LRTA 2014 ANNUAL REPORT COMPANY PROFILE

PLANS/ PERSPECTIVE STRATEGIC IMPLEMENTING PROGRAMS/ OBJECTIVES STRATEGIES ACTIVITIES Enhance and Implement Human Establish and Implement a Learning and Growth harness LRTA Resources Welfare & Comprehensive Human officers' and Development Programs Resource Development Plan employees' with the following railway expertise components: 1. Human Resources Development Program (i.e.

MAJOR PLANS & PROGRAMS Training Programs, Coaching and Mentoring, and Succession Planning initiatives) 2. Health, Wellness and Fitness Program 3. Welfare Benefits Program Pursue LRTA Implement the LRTA Reorganizational Reorganizational Plan /Restructuring Amend LRTA Charter to Establish an restructure the composition Pursue Charter Amendments Learning and Growth effective and of the LRTA Board of responsive Directors organization Establish a System Auditors Achieve certification and Competency Building increase competency of Program, which includes system auditors training and certification of System Auditors 36 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 37 RAIL OPERATIONS COMPANY PROFILE RAIL OPERATIONS RAIL OPERATIONS COMPANY PROFILE COMPANY

Line 1 – The Green Line Line 2 – The Blue Line

Line 1, or the Green Line, is the first LRT system in On the other hand, the Line 2 system of the Blue Line is Southeast Asia. It was conducted in September 1981 and a 13.8 km mass transit line, with 11 stations that traverse cities started its first commercial operation from Baclaran to Central of Pasig, Quezon, San Juan and Manila, along the major Termina Station on December 1, 1984, with full commercial thoroughfares of Marcos Highway, Aurora Boulevard, Ramon operation to Monumento on May 12, 1985. The system was Magsaysay Boulevard, Legarda and Recto Avenues. The Line 2 extended up to Roosevelt Station on October 22, 2010. system, which started its initial commercial operation in April 2003, has an Automatic Train Operation system, which is at par It is currently operating along a 20.5 km elevated in terms of facilities and technology with those in other railway system with 20 stations servicing the Taft Avenue – Rizal countries. It is equipped with a CCTV system that enables the Avenue and North EDSA corridor, and handles about 475,000 railway operator to monitor activities of passengers and passengers daily. employees at the stations.

The Line 1 system is served by a mixed fleet of three (3) Moreover, the Line 2 system is commuter-friendly and types of rolling stock (trains) in configuration of 3 and 4 cars or has facilities especially designed for the elderly and persons light rail vehicles (LRVs), namely, the 1st generation trains of with disabilities. It has 18 four-car trains. Each train is 92.6 Belgian origin (63 LRVs) that can accommodate 1,122 meters long and consists of four motorized cars. One train can passengers, the 2nd generation Adtranz trains of Korean seat 232 passengers. It can accommodate 1,396 more standing nature (28 LRVs) that can accommodate 1,358 passengers and passengers along its spacious coaches. the 3rd generation Japanese Kinki Sharyo trains (48 LRVs) that can accommodate 1,384 passengers. 38 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 39 KEY OFFICIALS COMPANY PROFILE ORGANIZATIONAL CHART LRTA’s KEY OFFICIALS

LRTA Board of Directors Office of the Corporate Internal Audit Department Secretary Office of the Administrator Safety and Security Financial & Managemant Division Division

Operation & Compliance Legal Counsel Planning Department Business Development & Division Department Public Relations Department Management Information Systems Division Business Development Division Corporate Planning and Research Division Public Relation Division

Office of the Deputy Administrator for Administrative, Office of the Deputy Administrator for Finance & Automated Fare Collection System Operations and Engineering Mr. Honorito D. Chaneco, Administrator Engr. Emerson L. Benitez, Deputy Administrator for Operations and Engineering and Concurrent Officer-In-Charge Administrative Finance Automated Fare Line 1 Line 2 Line 1 & 2 of the Planning Department Department Department Collection System Operations Operations Engineering Services Department Department Department Mr. Lutgardo C. Navarro, Deputy Administrator for Administrative, Finance and AFCS and Concurrent Officer-In-Charge Department Human Resource of the Administrative Department Budgeting & Manangement Line 1 Rolling Atty. Hernando T. Cabrera, Corporate Board Secretary Financial Revenue & Train Train Division Stock and Planning Division Production Operations Operations Ms. Marilou B. Liscano, Manager, Finance Department Interrelated General Services Reconciliation Division Division Division Division Systems Ms. Annabelle C. Ganancial, Manager, Business Development and Public Relations Department Station Station Division Ms. Prima M. Tapia, Manager, Internal Audit Department Procurement Accounting Ticket Production Operation Operation Division Division Division Division Division Line 2 Rolling Atty. Jose Jobel V. Belarmino, Manager, Legal Counsel Department Automated Fare Stock and Mr. Nicolas G. Ombao, Manager, AFCS Department Asset Collection System Traffic Control Traffic Control Interrelated Management Treasury Administation Division Division Systems Mr. Felix Gerard R. Leyson, Manager, Line 1 Operations Department Division Division Division Division Mr. Antonio R. Laigo, Jr., Manager, Line 2 Operations Department Engr. Federico J. Canar, Manager, Lines 1 and 2 Engineering Department Engr. Danilo S. Tolentino, Manager, Line 1 South Extension Project Engr. Rodrigo P. Bulario, Manager, Line 1 North Extension Project Engr. Lorelie L. Reyes, Manager, Line 2 East Extension Project Engr. Julito Z. Bernales, Manager, Lines 1 and 2 Rehabilitation Project Col. Adelo B. Jandayan, Manager, Safety and Security Division BOARD OF DIRECTORS AND LRTA 2014 ANNUAL REPORT 41

2014 APPPROVED BOARD RESOLUTIONS BOARD OF DIRECTORS COMPANY PROFILE Hon. Joseph Emilio Aguinaldo Abaya took his oath on October 18, 2012 to officially become the 17th Secretary of the Department of Transportation and Communications (DOTC). Prior to his appointment, Secretary Abaya was a member of the House of Representatives, representing the 1st District of Cavite, for three consecutive terms beginning 2004. He also chaired the Committee of Appropriations in the 15th Congress. Before joining public service, he was a Lieutenant Commander in the Philippine Navy. Notably, he served as aide-de-camp of former President Corazon Aquino, over two decades before her son would appoint him to his own official family. Jun finished his elementary education in De la Salle University-Taft and his secondary education in the Philippine Science High School where he graduated Second Honorable Mention. He took up Electrical Engineering in the University of the Philippines-Diliman and received citations as a University and College Scholar. After a year in UP, Jun took and topped the entrance examination for the Philippine Military Academy (PMA). On fellowship, he went on to finish a Master’s Degree in Electrical Engineering in Cornell Sec. Joseph Emilio University in Ithaca, New York. He was admitted to the Philippine Aguinaldo Abaya Bar in 2007. chairman

Alternate Chairman: Usec. Rene K. Limcaoco

Hon. Francis N. Tolentino is the Chairman of the Metropolitan Manila Development Authority (MMDA), tasked to supervise and coordinate metrowide services of Metro Manila without prejudice to the autonomy of the affected 17 local government units. Prior to this, he was appointed, then elected, as Mayor of Tagaytay City for three consecutive terms (1995-2004) and was the President of League of Cities of the Philippines (2001-2004), and EVP of the Union of Local Authorities of the Philippines (2001-2004). He is a Doctor of Judicial Science Candidate (International Environmental Law) of Tulane University Law School (New Orleans, USA), a Master of Laws (LLM) graduate at the University of London (England) specializing in Public International Law (with Merit, 2nd Honours), a Master of National Security Administration (MNSA) degree holder at the National Defense College of the Philippines (Ranked #6 out of 55 graduates), a Graduate Diploma holder in Public Administration from Robert F. Wagner Graduate School of Public Service, New York University USA), a Bachelor of Laws (LLB) graduate from Ateneo de Manila University Law Chairman Francis N. School (1984) and a Bachelor of Arts (Philosophy) graduate of the Tolentino Ateneo de Manila University (1980). member Alternate Member: Atty. Thomas M. Orbos 42 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 43 Hon. Cesar V. Purisima is the Secretary of the Hon. Arsenio M. Balisacan is Socioeconomic Planning BOARD OF DIRECTORS COMPANY PROFILE Department of Finance. He is also chair of the Economic Secretary and Director-General of the National Economic and Devel- Development Cluster of President Aquino’s cabinet. He is a opment Authority (NEDA). Prior to his appointment in NEDA, he was member of the Monetary Board of the Bangko Sentral ng Pili- Dean and Professor of the University of the Philippines (UP) pinas. He serves as Governor for the Philippines at the World School of Economics and Executive Director of the Philippine Bank and Alternate Governor for the Philippines at Center for Economic Development. He has taught Development International Monetary Fund. He is presently Governor for Economics, Agricultural and Resource Economics, and Economics of the Philippines at the Asian development Bank (ADB). He was Poverty and Inequality. An Academician of the National Academy of named by the international publication The Banker as 2013 Science and Technology and Adjunct Professor of the Australian National University, Secretary Balisacan is now on secondment COMPANY PROFILE COMPANY Finance Minister of the Year for Asia Pacific for elevating the status of the Philippines in the international community. He from UP. He also served as Director-Chief Executive of the BOARD OF DIRECTORS BOARD was named Finance Minister of the Year 2012 by Euromoney Southeast Asian Regional Centre for Graduate Study and Research in for his careful and successful stewardship of the Philippine Agriculture (SEARCA), an intergovernmental organization, for economy whose growth stood against the challenging six years (2003-2009). In 2000-2001 and 2003, he was Undersecretary global macro-economic stability.C.V. Purisima is a certified for Policy, Planning and Research of the Department of Agriculture public accountant. He was Chairman and Managing Partner (DA). As Undersecretary of DA, he was the country’s chief of the country’s largest professional services firm, SGV & Co. negotiator in the Agriculture Negotiations of the World Trade until 2004. Organization (WTO) and in various bilateral agriculture negotiations. Before joining the UP faculty in 1987, he was a Research Fellow Sec. Cesar V. Purisima Alternate Members: Asec. Soledad Emilia J. Cruz at the East West Center in Honolulu and Economist at the World Sec. Arsenio M. Balisacan member (Jan to Aug 2014) Bank in Washington, D.C. member Dir. Zarina M. Vasquez (Aug 15 to Present) Alternate Members: Dep. Dir. Gen. Emmanuel F. Esguerra Currently working as Secretary of Budget and Management in (Jan 2014 to Nov 19 2014) the new Aquino administration, Florencio “Butch” Barsana Abad has Mr. Kenneth V. Tanate (Nov 20 2014 to Present) been involved in public service for more than a decade. He started his Hon. Rogelio L. Singson, in leading the State’s engineering and political career by serving as Representative of Batanes in 1987. He construction arm as its 42nd head, advocates transformation and innovation in was appointed Secretary of Agrarian Reform under the first Aquino governance through transparency and accountability, doing the right project, for the right price and right quality, and undertaking more Public-Private Partnership administration and later returned to Congress as House (PPP) projects. Representative of Batanes in 1995, where he served three Secretary Singson has extensive experience in both government and consecutive terms. In 2004, he began his term as Secretary of private sector in the field of privatization and public-private partnership, Education under the Arroyo administration. Since assuming the role management of toll roads and expressways, water and power utilities privatization, airports, seaports and resorts. He was the President and Chief of Budget and Management Secretary, he has successfully Executive Officer of Maynilad Water Services, Inc. after its re-privatization from spearheaded several expenditure reforms—including Zero-Base July 1, 2007 to June 30, 2010 under new owners, the DMCI-Metro Pacific Budgeting, Bottom-Up Budgeting, early budget enactments, deeper Consortium. He also served in various senior positions such as Senior Vice President for Business Development, Citadel Holdings, Inc. from July 2002 to May civil society engagement, and landmark digitization 2007: Chairman and President of Bases Conversion & Development Authority initiatives—effectively bringing greater transparency, accountability, (BCDA) from July 1998 to February 2002: and Chairman of the Board of John Hay Poro Point Development Corporation. and openness in the public expenditure process. He completed his secondary and college education at the Ateneo de His other past involvements in the public sector include serving as Executive Director of the Coordinating Council of the Philippine Assistance Manila University, where he obtained a bachelor’s degree in Business Program (CCPAP) which coordinated and monitors the official development Management in 1980. He was accepted in the Ateneo College of Law assistance project and programs from May 1991 to November 1992; and as a President’s scholar and later passed the Bar Examination in 1985. Assistant Cabinet Secretary under the Office of then President Corazon C. Aquino from July 1987 to May 1991. Secretary Singson obtained his Bachelor of Science Abad was also a fellow in the Edward Mason Program in Public Policy Degree in Industrial Engineering from the University of the Philippines in 1971 and Management at the Kennedy School of Government in Sec. Florencio B. Abad and attended Master’s Program in Public & Business Management at the De La Salle University. He also attended various trainings abroad on Public-Private Harvard University in Cambridge, Massachusetts, where he Sec. Rogelio L. Singson member Partnership, privatization and Build Operate Transfer (BOT) Schemes. successfully obtained his Masters in Public Administration. Alternate Member (Primary): Asec. Maria Catalina E. Cabral member Alternate Member (Secondary): Atty. Maximilian Anthony Fernandez Alternate Member: Usec. Mario L. Relampagos 44 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 45 Hon. Chairman Ginez has double degree in Accounting and BOARD OF DIRECTORS COMPANY PROFILE Law. He completed his Bachelor of Science in Commerce (BSC) Major in Accounting from San Beda College in 1990. He earned his law degree from the same school in 1995, both graduating as class Valedictorian. He placed 3rd in the 1995 Philippine Bar Examination. As a certified public accountant, he worked previously as auditor at the Punongbayan & Araullo, and later served as litigation, corporate and tax lawyer at ACCRALAW Law Office. In 2003, Chairman Ginez partnered with three other litigation lawyers to form the Quial, Ginez,

COMPANY PROFILE COMPANY Paras & Beltran Law Offices. He also had a short stint as Chief of Staff of a Trustee at the Government Security Insurance Services (GSIS) and BOARD OF DIRECTORS BOARD as Executive Assistant in the Office of the Mayor of Pasay City in the mid-2000. He served as professor at the San Beda College of Law from 1997 to 2005 and was acting President of the Pamantasan ng Lungsod ng Pasay from 2006 to 2007. His legal experience was further put to test when he volunteered as Private Prosecutor in the impeachment case against former Chief Justice Renato Corona in 2011. Chairman Ginez also founded the Alliance for Alternative Action and an active Chairman Winstom M. member of the Integrated Bar of the Philippines and San Beda College Ginez of Law. member Alternate Member: Engr. Ronaldo F. Corpus

Hon. Dr. Epictetus E. Patalinghug is Professor of Economics and Finance at the College of Business Administration, University of the Philippines – Diliman. He Hon. Honorito D. Chaneco teaches Macroeconomics and the Financial system, Managerial Economics, MEMBER International Finance, Financial Regulation and Ethics, Financial Research, Industrial Organization, Competitive and Industry Analysis, and Government Regulation and Public Policy. He obtained his Ph. D. in Economics at the University Hon. Honorito D. Chaneco is the 9th Administrator of the Light Rail Transit Authority after being elected by the of Hawaii at Manoa and taught at their College of Business administration before Authority’s Board of Directors on April 01, 2013 pursuant to Section 18 of Republic Act No. 10149 otherwise known as “GOCC joining U.P.’s College of Business Administration (CBA) in 1981. He was the past Governance Act of 2011. He has worked in the Government and private sector with over 20 years of experience of increasingly Director of CBA’s Business Research and Publications Program, and Director of its responsible positions. Prior to his appointment, he was the Assistant General Manager of the Philippine Reclamation Authority Doctoral Program. He served as the editor of the Philippine Review of Economics for three (3) years from 2010- 2012. Also, he became the Project Manager of the Philippines national Oil Company-Development and Business and the Philippine Management Review. He serves in the editorial and Management Corporations (2009-2010), Finance Manager of the Philippine National Oil Company-Alternative Fuels board several local and foreign journals. Corporation (2007-2008) and Director for the Housing and Urban Development Coordinating Council (2006-2007). Further, he served as the Director of the Priority Programs and ODA Projects under the Office of the President of the Philippines for five (5) Dr. Patalinghug was a Commissioner of the Tariff Commission (an attached years from 2002-2006. Before joining public service, he became the program manager of the Clean and Green Foundation, Inc. in agency of NEDA) in 1996-1997 and participated in the formulation of the 2001 partaking his knowledge and expertise in environmental management systems. He completed his secondary education at country’s Investment Priorities Plan (IPP). He was a consultant at the Energy the Philippine Science High School in full scholarship and graduated college at University of the Philippines Diliman with a degree Regulatory Commission to help formulate the financial standards and in BS Mechanical Engineering. Apart from this, he is also a Certified Financial Consultant of the Institute of Financial Consultants performance-based ratemaking for electric utilities. He also managed several of Canada. Chaneco successfully obtained his Master’s in Business Administration in Ateneo Graduate School of Business. consulting projects funded by USAID, ADB, JBIC, and the World Bank. He is a member of the Rotary Club of Diliman, National Research Council of the Philippines, and Philippine Economic Society. He is one of the founding Governors Dr. Epictetus E. of the Philippine Management Academy. He has likewise published books and Patalinghug articles on such topics as privatization, productivity and competitiveness, member electric power industry regulation, retail trade industry liberalization, relationship between crime and unemployment, and the prospects of the East ASEAN Growth Area (EAGA). 46 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 47 APPROVED BOARD RESOLUTIONS APPROVED BOARD RESOLUTIONS

Date of Board Memorandum of Agreement (MOA) Between DOTC & LRTA on the LRT Line 2 Masinag Board Resolution No. Resolutions 06 March 037, Series of Extension Project, and Proposed Contract with Foresight Development & Surveying Co., Ltd. Meeting 2014 2014 – Korea Rail Network Authority – Soosung Engineering Co., Ltd. Consortium On the Operational Highlights, instruction to the LRTA Management to provide during the next Board Meeting target dates or timeframe of the actions being undertaken or to be undertaken Approval of both version of the Memorandum of Agreement (MOA); and, the authority of the 28 January 032, Series of to guide the members in monitoring said activities. LRTA Administrator to sign on behalf of LRTA the said MOA as well as the implementing 2014 2014 contracts with consultants, and contractors duly procured under the law implementing said On the Financial Highlights, instruction to the LRTA Management to provide during the next project or component thereof, specifically, among others the Contract for Consulting Services Board Meeting more analysis or reasons behind the figures given in the presentation. for the Civil Works of the LRT Line 2 East (Masinag) Extension Project (Detailed Engineering Instruction to the LRTA Management of the following: Design and Construction Supervision) with Foresight Development & Surveying Co., Ltd. – Korea Rail Network Authority – Soosung Engineering Co., Ltd. Consortium. 1. to provide Dir. Soledad Emilia J. Cruz and the NEDA Representative current indicative timeline of the JICA – funded Capacity Enhancement of Mass Transit Systems in Metro Manila Version 1 – DOTC to provide funding, procure and contract out including the issuance of Project (Light Rail Transit Line 1 South (Cavite) Extension and Line 2 East (Masinag) Extension Notice to Proceed, and LRTA to implement the project Projects) vis-à-vis current indicative timeline of the PPP - Manila LRT1 Extension, Operation and 28 January 033, Series of Maintenance Project; DOTC Funding to remain with DOTC for the latter to effect payment 2014 2014 2. to coordinate with Dir. Maria Catalina E. Cabral relative to the formal report on the supposed Version 2 – DOTC to provide funding, procure and contract out including the issuance of structural integrity inspection of LRT Systems by the Department of Public Works and Highway Notice to Proceed, and LRTA to implement the project (DPWH); and, to provide the National Economic Development Authority (NEDA) Representative latest update on the Automated Fare Collection System (AFCS) Project and the comments of the DOTC Funding to be transferred to LRTA and for the latter to effect payment Office of the Government Corporate Counsel (OGCC) on the pertinent Concession Agreement Approval of the Corporate Strategic Plan CY 2015 – 2020 and the Corporate Scorecard for CY for the said project. 2015 – 2016 subject to renegotiation and changes that may be made as duly approved by the For purposes for all the projects approved by the Board, under the P1.8B, P1.3B, and P1.5B 06 March 038, Series of Board. Stimulus Funds, approval of the adoption of the existing level of Authority of the Administrator 2014 2014 contained in the LRTA Board Resolution No. 238, Series of 2004, to wit: Instruction to the LRTA Management to provide historical baseline to show improvement.

“RESOLUTION No. 238 Series of 2004 Approval of the Renegotiation of CY 2014 Targets with Governance Commission for GOCCs (GCG) subject to the following comments made by the Board Members during the meeting: 28 January 034, Series of 1. That the Administrator is authorized to sign for and on behalf of the LRTA, all contracts 06 March 039, Series of 2014 2014 and transactions for projects approved by the Board, and obtained through public bidding 2014 2014 1. To retain the farebox ratio and to exclude the collection efficiency data; and, amounting to Fifty Million Pesos (P50,000,000.00) or its foreign currency equivalent and 2. Instead of the proposed indicator for targets, just use a numerical statement such as Ten Million Pesos (P10,000,000.00) for contracts obtained through alternative modes of one (1) approved study procurement, provided that resort to the alternative modes of procurement shall be subject to the prior approval of the Board; and, 2. That the Administrator immediately informs the Board actions it has taken pursuant to the above-mentioned authority.” 06 March 035, Series of Approval of the 2013 Interim Performance-Based Bonus for LRTA Officers and Employees. 2014 2014 06 March 036, Series of Approval of the 2013 Interim Performance-Based Incentive (PBI) for Appointive Director of 2014 2014 LRTA. LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 48 APPROVED BOARD RESOLUTIONS APPROVED BOARD RESOLUTIONS 49

Approval of the authority and mandate of the following Safety and Civil Security Officers to represent LRTA to file, Timeline for the LRT Line 1 South (Cavite) Extension Project vis-à-vis Timeline for the prosecute, sign complaints, attend hearings and proceedings of judicial and quasi-judicial bodies, and maintain Japan International Cooperation Agency (JICA) Component of the Project civil, criminal, and administrative charges:

1. Adelo B. Jandayan Instruction to the LRTA Management to provide the following critical information required as 2. Edgar C. Dela Cruz stated in the report made by Mr. Francis Nicolas M. Chua, Investment Banking Officer, 3. Jimmy L. Chua Development Bank of the Philippines (DBP) during the Board Meeting: 4. Roberto T. Salaysay 045, Series of 06 March 040, Series of 5. Francis Jose M. Alsisto 2014 2014 6. Rogelio J. Mariano, Jr. 27 March 2014 1. Operations Reports for January to March 2014; 7. Larry T. Punzalan 2014 2. Maintenance Reports for January to March 2014; 8. Celedonio C. Celestial 3. KPIs for February and March 2014; 9. Rogelio G. Cabrera 4. Status of Each LRV (with clear description of parts required, parts cannibalized, etc.); 10. Jaime A. Averilla, Jr. 11. Edwin P. Tabao 5. Transferring Employee List; and, 12. Dennis V. Antonio 6. CAAP Height Clearance for NAIA Station. Approval of the Corporate Strategic Plan CY 2015 – 2020 and the Corporate Scorecard for CY 2015 – 2016. LRT Line 1 NEP - Common Station Project

Instruction to the LRTA Planning Department to provide another column in the LRTA Corporate Scorecard for CY 2014-2016 indicating the names of government agencies/parties primarily or also responsible to meet the targets The bidders in the LRT1 Cavite Extension Project shall be given option to submit conceptual 27 March 041, Series of with which proper coordination should be made and that said targets should also be incorporated in or covered by design for the Common Station under the following general parameters, among others: 2014 2014 the concerned agencies/parties’ corporate scorecards. 1. Trinoma Location; 27 March 046, Series of 2. Resolve all technical and operational issues; Terms of Reference (TOR) and Approved Budget Contract (ABC) for the Security Services Contracts for the LRT 2014 2014 3. Maximum Cost of P1.4B; and, Line 1 & Line 2 Depots and LRT Revenue Lines 1 & 2 4. Project will be procured and implemented by DOTC. Any cost in excess of P1.4B shall be shouldered by the winning concessionaire. 27 March 042, Series of Approval of the Terms of Reference (TOR) and Multi-Year Budget (3 years) in the total amount of One Billion One 2014 2014 Hundred Eighty One Million Three Hundred Eighty One Thousand One Hundred Thirty Pesos (P1,181,381,130.00). If the bidder will not submit any conceptual design, it shall be bound by and must follow the conceptual design to be provided by DOTC. Automated Fare Collection System (AFCS) Project Approval of the Terms of Reference (TOR) and Approved Budget Contract (ABC) for the LRT Line 1 Maintenance 27 March 043, Series of Contract. In order to avoid possible conflict of interests between the AFCS provider and the LRT1 2014 2014 Concessionaire, approval to amend the structure of payment such that the availability Instruction to the LRTA Engineering Department to submit list of consumables with costing to serve as historical 27 March 047, Series of payment and the penalty payment shall be made to LRTA and not to the LRT1 baseline; to initiate process to identify what are the uncosted items; and, to take out and remove cost of Consumables and Other Parts appearing in Item 9.0 of the Project Cost presented by the Engineering Department. 2014 2014 Concessionaire/Operator.

Designated and authorized Mr. Nicolas G. Ombao, AFCS Department Manager as LRTA Approval of the Budget Estimates for CY 2015 in the total amount of P21.191 Billion which shall cover the Representative in the program office of the project. budgetary requirements for the management, operation and maintenance of the LRT Lines 1 & 2, as well as for the 27 March 044, Series of implementation of various infrastructure projects, increased by 50% over the P14.078 Billion CY 2014 COB LRT Line 1 North Extension Project (NEP) - Common Station Project 2014 2014 Proposal 29 April 048, Series of To request the Department of Transportation and Communications (DOTC) to properly 2014 2014 coordinate with the Department of Public Works and Highways (DPWH) on the North Avenue fly-over issues; and, with the Metro Manila Development Authority (MMDA) on traffic concerns and issues. LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 50 APPROVED BOARD RESOLUTIONS APPROVED BOARD RESOLUTIONS 51

LRT Lines 1 & 2 Maintenance Contracts Confirmation and Ratification of the Signed Automated Fare Collection System (AFCS) Project Accession Agreement 29 April 2014 049, Series LRTA Management given additional time to review and finalize the pertinent Terms of of 2014 Reference (TOR) and bid documents, and to publish the Invitation to Bid for the above-stated 29 April 2014 051, Series Designation of LRTA Administrator Honorito D. Chaneco to represent LRTA in the Dispute contracts before the end of June 2014. of 2014 Resolution Committee, the creation of which is required by the Concession Agreement. Audit Committee of the LRTA Board of Directors Confirmation and ratification of the Accession Agreement deferred pending the submission and Approval of the creation and composition of the committee with the following: review of pertinent documents required by the Members of the Board. Chairman: Asec. Soledad Emilia J. Cruz Alternate Member (Department of Finance) Approval of the endorsement of the revised Concession Agreement (CA) and Schedules and Instructions to Bidders (ITB) of the LRT Line 1 Extension, Operation and Maintenance Project Members: Dr. Epictetus E. Patalinghug (Re-Bid) to the Office of the Government Corporate Counsel (OGCC) and the Department of 29 April 2014 050, Series Member(PrivateSector Representative) 09 May 2014 052, Series Finance (DOF) for their respective review and recommendations. of 2014 of 2014 Dep. Dir. Gen. Emmanuel F. Esguerra Alternate Member (National Economic Revised Concession Agreement (RCA) and Schedules and Instructions to Bidders of the LRT Development Authority) Line 1 Extension, Operation and Maintenance Project (Re-Bid)

The committee shall be responsible for the following: To instruct the following relative to Memorandum of Agreement (MOA) between the Department of Transportation and Communications (DOTC) and the Light Rail Transit Authority a. Overseeing, monitoring and evaluating the adequacy and effectiveness of (LRTA) on the Manila LRT Line 1 Extension, Operation and Maintenance Project: LRTA's internal control system, engage and provide oversight of the LRTA's internal and external auditors, and coordinate with the Commission on Audit a. DOTC Project Team and DBP-IFC Transaction Advisor to incorporate inputs and comments (COA); 22 May 2014 053, Series from the Members of the LRTA Board of Directors made during the meeting; of 2014 b. Reviewing and approving audit scope and frequency, the annual internal audit plan, quarterly, semi-annual and annual financial statements before a. LRTA Department Managers to provide their comments until 27 May 2014;

submission to the Board‘ focusing on changes in accounting policies and practices, major judgmental areas, significant adjustments resulting from a. LRTA Legal Department Manager to immediately endorse advance copy of the proposed the audit, going concern assumptions, compliance with accounting MOA to the Office of the Government Corporate Counsel (OGCC) for its review and standards, and compliance with tax, legal, regulatory and COA comments pending the submission of comments from the LRTA Department Managers; requirements; and,

c. Receiving and reviewing reports of internal and external auditors and a. To schedule LRTA Board of Directors’ Special Meeting immediately after the comments of regulatory agencies, and ensuring that Management is taking appropriate the OGCC on the Revised Concession Agreement is received by the LRTA, preferably on corrective actions, in a timely manner in addressing control and compliance 26 or 27 May 2014. functions with regulatory agencies; 22 May 2014 054, Series d. Ensuring that internal auditors have free and full access to all the GOCC's of 2014 Approval of the LRTA’s Policy on Giving and Acceptance of Gifts and Benefits records, properties and personnel relevant to and required by its function and that the internal audit activity shalt be free from interference in determining its scope, performing its work and communicating its results; and

e. Developing a transparent financial management system that will ensure the integrity of internal control activities throughout the GOCC through a procedures and policies handbook that will be used by the entire organization. LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 52 APPROVED BOARD RESOLUTIONS APPROVED BOARD RESOLUTIONS 53

Revised Concession Agreement (RCA) and Schedules and Instructions to Bidders relative to LRT Line 2 Maintenance Contract the Manila LRT Line 1 Extension, Operation and Maintenance Project Approval of the changes in the Source of Funding, Scope of Work, Approved Budget Contract, Approval of the Revised Concession Agreement (RCA) and Schedules and Instructions to Bidders Annual Average Cost and Monthly Average Cost relative to the Maintenance Contract of the relative to the Manila LRT Line 1 Extension, Operation and Maintenance Project, in the light of LRT Line 2 System with the condition that the safety and reliability of the LRT Line 2 Systems are the following: not compromised.

1. Favourable comments and review on the Revised Concession Agreement (RCA) and Originally Approved Approved Revisions Schedules, and Instructions to Bidders done by the Office of the Government Corporate Funding Source Stimulus Fund under the Disbursement LRTA Corporate Operating Budget Counsel (OGCC) through Contract Review No. 160 Series of 2014 dated 26 March (May) Acceleration Program (DAP) (COB) 2014 which states: “Accordingly, pursuant to the legal review required by the BOT Law Scope of Work Supply of labor, consumable materials Supply of labor, consumable and its revised IRR, and without passing upon its technical and financial aspects, the draft for all maintenance activities for the materials for all maintenance entire Line 2 System and equipment activities for the entire Line 2 Revised Concession Agreement may be given due course, subject to the above-stated including the provision of capital spares System and equipment including observations and conditions, including those previously stated in our Opinion 137, dated for rolling stock and onboard systems, the provision of capital spares for 05 July 2013”; as well as janitorial services. rolling stock and onboard systems, as well as janitorial services. 26 May 2014 055, Series 2. Favourable Comments from the Office of the Solicitor General (OSG) on the said Concession 23 July 2014 056-A, (Reduction in capital spares for of 2014 Agreement as stated in its letter dated 07 May 2014 addressed to DOTC Sec. Joseph Emilio Brake Operating Unit and Series of Gangway Diaphragm) Aguinaldo Abaya; and, 2014 Contract Duration Three (3) years Three (3) years 3. Manifestation of the duly authorized representative of the Department of Finance (DOF) Approved Budget for the PhP 1,331,149,021.10 PhP 1,154,811,561.83 during the said special meeting that the DOF has reviewed the Concession Agreement and Contract (ABC) found the same to be acceptable to the DOF. Annual Average Cost PhP 443,716,340.37 PhP 384,937,187.28 Result of the Evaluation of the Eligibility Documents and Technical & Financial Proposals of Monthly Average Cost PhP 36,976,361.70 PhP 32,078,098.94 the Light Rail Manila Consortium for the Manila LRT1 Extension, Operation and Maintenance Project. 1. Amendatory & Restated Contract dated 07 February 2014 between OMMC-KORAIL-ERIN MARTY-JORGMAN JV, After due consideration, the LRTA Board of Directors resolved to approve the Technical and DOTC and LRTA for the LRT Project No. 1 Rail Replacement at LRT Revenue Line Financial Bids of the Light Rail Manila Consortium relative to the Manila LRT1 Extension, 2. Amendatory & Restated Contract dated 07 February 2014 between OMMC-KORAIL- Operation and Maintenance Project, subject to further review and approval by the National ERIN MARTY JORGMAN JV, DOTC and LRTA for the LRT Project No. 2 Systematic Economic Development Authority (NEDA) in accordance with the BOT Law (Republic Act No. Replacement of Gantry Anchor Bolts of LRT1 Revenue Line 6957 as amended by Republic Act No. 7718) and its Revised Implementing Rules and 056B, Series Regulations. of 2014 Ratified the Amendatory & Restated Contracts for Project Nos. 1 & 2 taking into consideration the representations of the Corporate Secretary that the only material change The LRTA Board of Directors expressed for the record that it has no jurisdiction on the contained in the said Amendatory & Restated Contracts is the inclusion of LRTA as determination of the exact location of the Common Station Project which is bundled with the Manila LRT1 Extension, Operation and Maintenance Project. contracting party.

The LRTA Board of Directors noted and considered that as early as during the incumbency of 09 June 2014 056, Series DOTC Secretary Jose P. de Jesus, the Common Station Project had become a DOTC Project duly of 2014 supported by DOTC funding and budget.

The LRTA Board of Directors further noted and considered the suit (Civil Case R-PSY-14-16681- CV) filed by SM Prime Holdings, Inc., against DOTC and LRTA, and took the position that the location of the said Common Station shall be without prejudice to the final resolution of the proper court on the matter.

The LRTA Board of Directors instructed that request be made to the National Economic Development Authority (NEDA) to present during the next LRTA Board of Directors’ Meeting an explanation, justification and purpose why the location of the Common Station Project is transferred from SM area to Trinoma area. LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 54 APPROVED BOARD RESOLUTIONS APPROVED BOARD RESOLUTIONS 55

Delegation of Authority to Appoint LRTA Officials and Personnel and to Approve and Sign Advertising Contracts Administrative Charges and Impose Administrative Disciplinary Actions 060, Series 27 August of 2014 Instruction to the LRTA Management to consult all outdoor advertising contracts with the Subject to existing Civil Service Commission Rules, Regulations and Policies, approval of the 2014 Metro Manila Development Authority (MMDA); and, to make a presentation during the next Authority of the LRTA Administrator to appoint officials and employees of the Authority but LRTA Board Meeting on the policies and rates relative to said advertising contracts. 056C, appointments of LRTA Department Managers shall be subject to the ratification of the LRTA Series of Board. CY 2015 Supplemental Budget 2014 Approval of the Authority of the Deputy Administrator for Administrative, Finance and AFCS to Approval of the CY 2015 Supplemental Budget in the amount of P290.83M to cover the impose, approve and sign administrative disciplinary action but any suspension from work for a payment of the following as a result of the LRT Line 1 Cavite Extension Project: period of thirty (30) days or more, or dismissal from service shall be subject to ratification by 061, Series the LRTA Board. 27 August of 2014 2014 Separation Incentive for 963 affected personnel – 166.84M LRTA management to formulate protocol on appeals relative to administrative Terminal Leave Pay – 123.99M cases/disciplinary actions against officials, employees and personnel of the Authority. Total- P290.83M Approval of the award of the Manila LRT1 Cavite Extension Project to the Light Rail Manila Consortium (LRMC) as recommended by the DOTC Special Bids and Award Committee through Resolution dated 21 July 2014 in the amount of Nine Billion Three Hundred Fifty Million One MOA between DOTC, LRTA and Province of Cavite – LRT1 Cavite Extension Project Hundred Three Thousand Nine Hundred Pesos (Php 9,350,103,900.00) Concession Fee Relocation Site/ Bid Documents - Construction of LRT1 Cavite Extension Project Relocation payment; Site Deferment of the approval of the MOA. LRTA Management to present during the next Board Approval of the authority of DOTC Secretary Joseph Emilio Aguinaldo Abaya to sign and issue 27 August 062, Series 057, Series Meeting the Approved Budget Contract (ABC), timeline of the project; and, the earlier MOA the pertinent Notice of Award (NOA) and Concession Agreement (CA) for and on behalf of 2014 of 2014 entered into with the Province of Cavite. 25 July 2014 of 2014 LRTA; MOA between DOTC & LRTA, and Term Sheet & Milestones on the LRT Line 2 Operations & Maintenance Project Approval of the authority of LRTA to open blocked account as required by the Concession Agreement; Approval of the following:

Approval of the designation and authority LRTA Administrator, Honorito D. Chaneco, and, LRTA a. Composition of the Prequalification, Bids and Awards Committee (PBAC) consisting either Finance Department Manager, Marilou B. Liscano, as signatories of the said blocked account. of three (3) representatives from LRTA and four (4) representatives from DOTC, or four (4) representatives from LRTA and three (3) representatives from DOTC LRT2 Masinag Extension Project 27 August 063, Series 058, Series b. Eligibility Requirements 27 August 2014 of 2014 of 2014 Instruction to the Project Management Office, and the Project Consultant to meet with Hon. 2014 Del de Guzman, Mayor, Marikina City to discuss pending issues and concerns pertinent to the c. Instruction to Prospective Bidders specific locations of the stations d. Project Information Memorandum LRT1 & 2 Maintenance Contracts Bidding/Security Contracts Bidding Deferment of the approval of the MOA pending comments from the DOF. Instruction to the LRTA Management to provide relevant timeline/targets both original and Status Report on the LRT1 Cavite Extension Project; Integrated AFCS Project; and, LRT Line 2 059, Series adjustments made relative to the procurement process and explain why they were postponed; Masinag Extension Project 27 August of 2014 and, to provide basis when and how can the LRTA Bids and Awards Committee ban or restrict 2014 firms with bad performance records from joining the bidding. 04 Nov. 064, Series DOTC to request concerned project offices to provide in the status report relevant 2014 of 2014 timeline/targets both original and adjustments made relative to the procurement process and explain why they were delayed/postponed; and, other pertinent actions taken relative to the same. LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 56 APPROVED BOARD RESOLUTIONS APPROVED BOARD RESOLUTIONS 57

065, Series Existing Policies and Guidelines Pertinent to Advertising Contracts Memorandum of Agreement (MOA) between Department of Transportation and 04 Nov. 2014 of 2014 Communications (DOTC) and Light Rail Transit Authority (LRTA) relative to the LRT Line 2 Instruction to the LRTA Management to explain in writing the policy on pricing and rate. 04 Nov. 2014 072, Series Operation & Maintenance Project of 2014 LRT Line 1 Maintenance Contract Issue Deferment of the approval of the MOA pending submission of supporting documents. Bid Documents – Construction of LRT1 Cavite Extension Project Relocation Site 066, Series With the failure of the bidding, when no one submitted any bid, there is need 04 Nov. 2014 073, Series 04 Nov. 2014 of 2014 of 2014 Deferment of the approval of the bid documents, pending submission of supporting a. to continue with the month-to-month contract of the current maintenance provider; documents. b. to conduct another bidding; and, LRT Line 1 Security Service Contract Bidding 074, Series 04 Nov. 2014 of 2014 Approval of the bidding. LRTA Management to reduce contract period to one (1) year and. c. To refer the matter to Government Procurement Policy Board (GPPB), and the corresponding Approved Budget Contract (ABC) considering the incoming concessionaire of the Office of the Government Corporate Counsel (OGCC) for opinion and guidance. LRT Line 1 Systems by 2015 Additional Proposed Budgetary Support from the National Government (NG) for CY 2015 Authority and Mandate of Civil Security Officers to Represent LRTA During Proceedings 075, Series of Judicial and Quasi-Judicial Bodies Approval of Option 1 which is 04 Nov. 2014 of 2014 Approval of the Authority and Mandate of Civil Security Officers to Represent LRTA Additional Budgetary Support from the NG in the form of operating subsidy During Proceedings of Judicial and Quasi-Judicial Bodies amounting to P437.40 Million. This will increase the existing proposed subsidy support 19 Dec. 2014 076, Series Presentation on the C-Bus Transit Development Project from P3.110 Billion (for the Rehabilitation Projects of LRT Lines 1 & 2 and separation of 2014 pay of affected 963 employees on the implementation of Concession Agreement for The Board noted the presentation, and subject to further presentations. 067, Series LRT1) to P3.548 Billion. 19 Dec. 2014 077, Series C-Bus Transit Development Project 04 Nov. 2014 of 2014 However, if Option 2 which is of 2014 The Board took note of the presentation and subject to further presentations. Tap the ten per cent (10%) concession fee to be paid by Light Rail Manila Report on the Procurement of LRT Lines 1 & 2 Maintenance and Security Contracts Consortium, once the Concession Agreement (CA) becomes effective; hence immediate approval of the MOA by and between DOTC and LRTA be acted upon. is cleared by the The Board took note of the report. With respect to the LRT Line 1 Maintenance, LRTA DOF, then Option 2 shall be utilized. Management instructed to negotiate for lower terms to any maintenance 19 Dec. 2014 078,Series contractor and that if negotiation fails, to continue with the month-to-month contract with of 2014 the current maintenance contractor; and, to properly cancel the contract of the current 068, Series LRTA Performance Scorecard CY 2015-2017 maintenance contractor the moment the Light Rail Manila Consortium (LRMC) formalizes its 04 Nov. of 2014 actual take-over of the system. 2014 Approval of the above-stated subject with condition that upon change of the corporate objectives of LRTA, the criteria will be amended accordingly. Memorandum of Agreement (MOA) between the City of Las Piñas; the Department of Transportation and Communications (DOTC); and, the Light Rail Transit Authority (LRTA) 069, Series CY 2014 Revised Performance Targets (for Renegotiation) 19 Dec. 2014 079,Series relative to the LRT Line 1 Cavite Extension Project 04 Nov. 2014 of 2014 of 2014 Approval of the CY 2014 Revised Performance Targets (for Renegotiation Approval of the MOA subject to further approval of the Department of Transportation and Communications (DOTC). 04 Nov. 2014 070, Series Memorandum of Agreement (MOA) between DOTC & LRTA on the LRT Line 1 Extension, of 2014 Operation and Maintenance Project Memorandum of Agreement (MOA) between the Department of Transportation and Communications (DOTC) and the Light Rail Transit Authority (LRTA) relative to the LRT Line 2 Approval of the above-mentioned MOA 19 Dec. 2014 080,Series Operations & Maintenance Project Memorandum of Agreement (MOA) between the City of Las Pinas; the of 2014 Department of Transportation and Communications (DOTC); and, the Light Rail Approval of the MOA 071, Series Transit Authority (LRTA) relative to the LRT Line 1 Cavite Extension Project 04 Nov. 2014 of 2014 Deferment of the approval of the MOA, pending comments from the LRTA Legal Department. LRTA 2014 ANNUAL REPORT 58 APPROVED BOARD RESOLUTIONS 2014 AUDIT REPORT

Renewal of the Omnibus Credit Line Facility with Landbank of the Philippines (LBP)

Approval of the renewal, secured and entered into by the Administrator under the same terms and conditions of the previous Agreement, effective January 2015 to December 31, 2017, of the existing PhP 5.50 Billion Omnibus Credit Line (OCL) Facility with the Landbank of the Philippines (LBP) which is guaranteed by the National Government and which currently covers P1.691 Billion outstanding loan balance;

Approval of the Authority of the Administrator or in his absence, his duly designated representative, to negotiate, sign execute and deliver negotiable instruments and other documents in connection with the implementation/execution of the said P5.5 Billion Omnibus Credit Line (OCL) Facility with the Land Bank of the Philippines;

Instruction to LRTA Management to notify the Landbank of the Philippines (LBP); the Department of Finance (DOF); and, the Bureau of Treasury (BTR) of the said P5.50 Billion Omnibus Credit Line Facility, and to negotiate for a lower interest rate. 19 Dec. 2014 081, Series of 2014 Memorandum of Agreement (MOA) between the Department of Transportation and Communications (DOTC) and the Light Rail Transit Authority (LRTA) on the Matter LRT Line 2 Steel Rails to be Lent to DOTC-MRT3

Considering further the paramount issues and concerns on safety of the riding public in general; the effect of the matter to the economy; the cross ridership between LRT1, LRT2 and MRT3; and, that the borrowed rails shall be replaced with new ones of same specifications and grade, the Board approved the above-stated MOA.

082, Series Performance Enhancement Incentive (PEI) for CY 2014 19 Dec. 2014 of 2014 The Board took note of the above-stated subject. Risk Management Committee

19 Dec. 2014 083,Series Instruction to form and constitute a LRTA Board of Directors Risk Management Committee with of 2014 Dr. Epictetus E. Patalinghug as the Chairman of the said Committee. 2015-2020 LRTA’s Strategy Map and Scorecard 19 Dec. 2014 084,Series of 2014 The Board took note of the above-mentioned subject. LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 60 ANNUAL AUDIT REPORT ANNUAL AUDIT REPORT 61 LRTA 2014 ANNUAL REPORT LRTA 2014 ANNUAL REPORT 62 ANNUAL AUDIT REPORT ANNUAL AUDIT REPORT 63 Light Rail Transit Authority

© 2015 All Rights Reserved A.S. ANASTACIO