FARE claims from the delayed implementation of tariff increase on the Light Rail Transit (LRT) Line 1 would cost the government more than half a billion pesos by year-end, according to a ranking official of the operator of the train system.
Light Rail Manila Corp. (LRMC) President Rogelio L. Singson said the government would have owed the company as much as P600 million on fare claims by the end of 2017, a “measly amount” that the state could cover to shield commuters from the tariff adjustment.
“By year-end fare claims would be about P500 million to P600 million,” he told the BusinessMirror. “The government can easily subsidize it.” Under the concession agreement, a 10-percent fare adjustment should have been implemented in August last year. The government failed to implement this, hence the claims.
Currently, the government owes the private company, a joint venture between Metro Pacific Investments Corp. and Ayala Corp., a whopping P300 million in delayed fare hike.
“Ideally, they should be implementing the provisions of the concession agreement, which means to correct the fare, so that there will be no subsidy,” Singson said.
However, Singson added, his group recommended that the Light Rail Transit Authority (LRTA) subsidize the cost, so as not to burden commuters from the fare hike.
“From our discussions with the LRTA, I told them they have a big budget. So, instead of adjusting it to the riders, the government can subsidize it,” he said. The regulator, Singson added, is amenable to the said recommendation.
LRMC holds the concession for the operations, maintenance and the extension of the train line to Cavite. It signed the agreement with the government in October 2014. The company will operate and maintain the oldest train system in the Philippines for 32 years.
Targeted for completion in about four years after the delivery of right-of-way, the 11.7-kilometer Cavite Extension will connect into the existing system immediately south of the Baclaran Station and run in a generally southerly direction to Niyog, Cavite.
It will consist of elevated guideways throughout the majority of the alignment, except for the guideway section at Zapote, which will be located at grade.
Eight new stations will be provided with three intermodal facilities across Pasay City, Parañaque City, Las Piñas City and Bacoor City. The new stations are Aseana, MIA, Asia World, Ninoy Aquino, Dr. Santos, Las Pinas, Zapote and Niyog. The intermodal facilities shall be located at Dr. Santos, Zapote and Niyog.
The new stations will be accessible to and from nearby community facilities, such as shops, schools, stadium, park, etc., and be located to suit passenger flow routes from residential areas.
Pedestrian access to all new stations will be direct, safe and easy. Details, such as lighting to distinguish access points, pedestrian cross striping and curb cuts for handicapped access, will also be provided.
It recently received two international certifications on management and environmental standards from TUV Rheinland.
It is on the lookout for railway deals in the Philippines, syncing its expansion plan to the Duterte administration’s massive infrastructure thrust.
The Duterte administration has lined up several rail-infrastructure deals in its huge pipeline of projects: the Mega Manila Subway, the Mindanao Railway, the Philippine National Railways South Long Haul Line and the LRT Line 2 Extension, among others.
http://www.businessmirror.com.ph/government-to-owe-lrmc-p600-million-in-fare-subsidy-by-end-2017/
Light Rail Manila Corp. (LRMC) President Rogelio L. Singson said the government would have owed the company as much as P600 million on fare claims by the end of 2017, a “measly amount” that the state could cover to shield commuters from the tariff adjustment.
“By year-end fare claims would be about P500 million to P600 million,” he told the BusinessMirror. “The government can easily subsidize it.” Under the concession agreement, a 10-percent fare adjustment should have been implemented in August last year. The government failed to implement this, hence the claims.
Currently, the government owes the private company, a joint venture between Metro Pacific Investments Corp. and Ayala Corp., a whopping P300 million in delayed fare hike.
“Ideally, they should be implementing the provisions of the concession agreement, which means to correct the fare, so that there will be no subsidy,” Singson said.
However, Singson added, his group recommended that the Light Rail Transit Authority (LRTA) subsidize the cost, so as not to burden commuters from the fare hike.
“From our discussions with the LRTA, I told them they have a big budget. So, instead of adjusting it to the riders, the government can subsidize it,” he said. The regulator, Singson added, is amenable to the said recommendation.
LRMC holds the concession for the operations, maintenance and the extension of the train line to Cavite. It signed the agreement with the government in October 2014. The company will operate and maintain the oldest train system in the Philippines for 32 years.
Targeted for completion in about four years after the delivery of right-of-way, the 11.7-kilometer Cavite Extension will connect into the existing system immediately south of the Baclaran Station and run in a generally southerly direction to Niyog, Cavite.
It will consist of elevated guideways throughout the majority of the alignment, except for the guideway section at Zapote, which will be located at grade.
Eight new stations will be provided with three intermodal facilities across Pasay City, Parañaque City, Las Piñas City and Bacoor City. The new stations are Aseana, MIA, Asia World, Ninoy Aquino, Dr. Santos, Las Pinas, Zapote and Niyog. The intermodal facilities shall be located at Dr. Santos, Zapote and Niyog.
The new stations will be accessible to and from nearby community facilities, such as shops, schools, stadium, park, etc., and be located to suit passenger flow routes from residential areas.
Pedestrian access to all new stations will be direct, safe and easy. Details, such as lighting to distinguish access points, pedestrian cross striping and curb cuts for handicapped access, will also be provided.
It recently received two international certifications on management and environmental standards from TUV Rheinland.
It is on the lookout for railway deals in the Philippines, syncing its expansion plan to the Duterte administration’s massive infrastructure thrust.
The Duterte administration has lined up several rail-infrastructure deals in its huge pipeline of projects: the Mega Manila Subway, the Mindanao Railway, the Philippine National Railways South Long Haul Line and the LRT Line 2 Extension, among others.
http://www.businessmirror.com.ph/government-to-owe-lrmc-p600-million-in-fare-subsidy-by-end-2017/
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