FILE PHOTO: DOTC Sec. Jun Abaya (UNTV News)
MANILA, Philippines — The private-sector of the Light Rail Transit Line 1 is in talks with the government on a potential increase in train fares ahead of its planned takeover in September.
After the takeover, LRT line 1 will be fully under the private company
LRMC is led by Metro Pacific Investment Corporation and Ayala Corporation
Among the issues that still needs to be taken up is the existing train fares of LRT-1, which needs to go up to meet the requirements under the contract they signed
the existing rail tariff is about 90 percent of what is committed under the concession agreement
This means that the Department Of Transportation And Communications, would need to implement another fare increase or compensate Light Rail Manila for the difference.
But the transportation department said, the private sector has no liberty to implement a fare increase without the consent of the government
DOTC Secretary Jun Abaya said, “it’s up to the government to decide…if they think there is a need to increase, it will be given, if they think it is not the right time for some reason, the government will subsidize.”
But LRMC said, implementing a fare increase is not their priority, cleaning up the stations and improving service are their primary concerns
It was a controversial move by the government when fare increases in MRT and LRT that were approved as early as 2011 was implemented only in January of this year. 11 pesos is the base fare for the increase with 1 peso per succeeding kilometer
Currently, the maximum fare in MRT from North Avenue to Taft costs twice its previous cap at 28 pesos, while LRT line 1 increased up to p30 and p25 for LRT line 2.
If the contract of the LRMC and the government will be followed, there will be a 17 peso increase with additional 2 pesos per kilometer
LRMC said, the implemented fare increase last January should’ve been raised by 10% only based on the contract. (MON JOCSON / UNTV News)