However, its capacity was expected to become insufficient once the railway network in Metro Manila was completed in 2004 with the full opening of the LRT Line 2.

[10] On April 7, 2000, the Japan Bank for International Cooperation (JBIC) extended a ₱8.893 billion loan to finance the second phase of the capacity expansion project.

However, delays were encountered in the bidding process, with senator Francisco Tatad claiming on March 21, 2004, that "unconfirmed reports" reaching him disclosed that groups identifying themselves with the President of the Philippines attempted to extort US$1 million from each bidder supposedly as campaign funds for the May 2004 elections.

His claims were denied by LRTA administrator Pacifico Fajardo, as well as the Department of Transportation and Communications (DOTC; precursor to the DOTr).

[18] After delivery in the third quarter of 2006, the third-generation trains underwent mainline test runs in the late evening, during non-operating hours.

[19] On December 9, 2006, at a ceremony in Baclaran, Japanese Prime Minister Shinzo Abe and President Gloria Macapagal Arroyo inaugurated the third-generation 1200 class trains.

[5] The train car body is made of beadless lightweight stainless steel, with composite materials on the indoor panels and aluminum on the inner bone to reduce weight.

[17] Each LRV consists of four totally enclosed, self-ventilated 3-phase AC induction motors, driven by variable-voltage/variable-frequency drive (VVVF) inverters.

[24] Semi-permanent couplers are present in the ends of each light rail vehicle except the driving cab section of the MC car.