By Lawrence Agcaoili

The Finance Department has endorsed the planned P5.5-billion borrowing of the state-run Light Rail Transit Authority this year to bankroll the mass transit’s capacity expansion and pay maturing obligations.

Finance Secretary Margarito Teves asked President Gloria Macapagal Arroyo in a memorandum to authorize an increase the omnibus credit line of LRTA with Land Bank of the Philippines to P5.5 billion from P1 billion.

Teves said proceeds of the amount would be used to settle actual contractual obligations amounting to P820 million incurred from the implementation of the second phase of the capacity expansion project of the LRT line along Taft Ave. that runs from Baclaran in Pasay City to Monumento.

Teves said the amount would also be used to make provisions for funding of the projects’ future billings and other funding requirements.

Documents submitted by Finance to Malacañang showed that bulk of the agency’s expansion this year would go to the capacity expansion project with P3.05 billion and P1.85 billion for maintenance and rehabilitation.