Light Rail Transit Authority administrator Melquiades Robles recently issued a notice to proceed (NTP) to Sumitomo-Itochu Joint Venture (SJIV) after the LRTA board of directors approved the P8.5-billion capacity expansion project.
Robles issued the NTP last March 15 and gave the SJIV until the end of this month to start the project.
A loan from the Japan Bank for International Cooperation (JBIC) will finance the project.
The primary goal of the project is to increase the
capacity of LRT-1 from 27,000 to 40,000 passengers an hour per route with the addition of 48 train cars.
LRT 1 has 91 cars but only 69 are operational.
Another goal of the project is to modernize the facilities of LRT-1 in preparation for the extension of the service from Baclaran in Parañaque City to Cavite.
"All outdated materials will be replaced," Robles said.
Trains currently run from Monumento in Caloocan City to Baclaran.
The LRTA also has plans for boosting revenues from the sale of advertising spaces within train stations.
Robles had earlier said the LRTA would invite bidders for a five-year contract to oversee the sale of the advertising spaces.
"We have set a floor price of P80 million. We could get more than that compared to the P25 million annually that we have been getting," he said.
Total non-rail revenue this year is expected to reach P145 million,
Revenue from rail operations is also expected to increase to P2.8 billion this year, up 70 percent from the P1.66 billion posted in 2004.
But the revenue increases apparently won’t be enough to put the LRTA in the black.
Robles said a P10 fare increase for both Lines 1 and 2 of the LRT is necessary to pay for maturing debts, estimated at P3.4 billion this year, and rises in power costs and other overhead.
Power accounts for around 30 percent of the rail system’s operations.
Train service at LRT Lines 1 and 2 will be suspended for four days, from March 24, Maundy Thursday, to March 27, Easter Sunday.
Robles said the LRTA will take advantage of the Holy Week break to inspect and repair their facilities.
He said the suspension of the service will not have an adverse effect on transportation in Metro Manila since most residents will either stay at home or go on vacation during the four days.