MANILA, Philippines - The tandem of infrastructure giant Metro Pacific Investments Corp. (MPIC) and conglomerate Ayala Corp. is hoping that the government would finally implement the much delayed fare increase for the Light Rail Transit (LRT) system.
MPIC president Jose Maria K. Lim said the proposed fare hike would enable the Light Rail Manila Consortium (LRMC) to do financial closing prior to taking over the LRT line 1 (LRT-1).
“One of the most critical aspects is the fare increase which we hope will be implemented in a timely fashion so that we have enough time to close with the banks,” Lim said.
Last Oct. 2, LRMC and the Department of Transportation and Communications (DOTC) signed the 32-year concession agreement for the P65-billion LRT-1 Cavite extension project.
The government intends to adopt a “users pay” principle wherein commuters would be charged based on the distance they travel instead of the number of stations they pass.
It would be recalled that the Light Rail Transit Authority (LRTA) board approved a formula in May 2011 wherein a fixed rate of P11 plus P1 per kilometer would be charged to LRT and Metro Rail Transit line 3 (MRT-3) passengers.
Using the formula, passengers of 17-kilometer MRT3 from North Avenue in Quezon City to Taft Ave. in Pasay City or back would increase to P28 for stored value and single journey tickets from the current fare of P15.
On the other hand, passengers from LRT1 from Baclaran in Paranaque City to Monumento in Caloocan City would have to shell out P30 for single journey and P29 for stored value tickets from the existing P20 fare while passengers of LRT2 from Recto Ave. in Manila to Santolan in Pasig City would pay P24 for stored value and P25 for single journey tickets instead of the existing P15.
The government last raised fares for LRT1 to P15 in 2003 while MRT3 fares have been cut by half to P15 in 2001 from the original fare of 34 when it started in 1999.
Fares of LRT2 have remained unchanged.
“We don’t know when the government will implement. They were supposed to implement that in August 1 but they have not implemented it,” Lim added.
After the signing of the concession agreement, he explained that LRMC has 12 months to do financial closing and take over the operations of the existing LRT-1 system and 48 months to deliver the extension all the way to Cavite.
He disclosed that LRMC has committed to invest P35 billion for the project that is envisioned to help ease the worsening traffic conditions in the Parañaque-Las Piñas-Cavite corridor.
“Yes there will be some financing involved. Approximately 70 percent of the project cost will be borrowed. We have committed creditors already,” he said.
He explained that detailed works would commence immediately while construction works would start upon take over of the existing LRT-1 system.
Under the agreement, LRMC would operate and maintain the existing LRT-1 from Roosevelt in Quezon City up to Baclaran and at the same time construct an 11.7-km extension to the Niog area in Bacoor, Cavite consisting of eight new train stations traversing the cities of Parañaque and Las Piñas up to Bacoor.
MPIC’s Metro Pacific Light Rail Corp. controls 55 percent of the consortium followed by Ayala’s AC Infrastructure Holdings Corp. with 35 percent and the Philippine Investment Alliance for Infrastructure’s Macquarie Infrastructure Holdings (Philippines) PTE Ltd. with 10 percent.