THE DEPARTMENT of Transportation (DOTr) may seek a delay in the implementation of another fare hike for the Light Rail Transit (LRT) Line 1 that private operator Light Rail Manila Corp. said was due this month.
In a briefing on Monday, DOTr spokesperson Cherie Mercado told reporters that the government wanted to strike a “balance” between higher fees to be shouldered by commuters and the need to comply with its contract with the private sector.
LRT 1 operations were privatized in line with the P65-billion LRT 1 Cavite extension public-private partnership project. The deal was won by a consortium led by Manuel V. Pangilinan’s Metro Pacific Investments Corp. and Ayala Corp., which was seeking a 10-percent fare increase this month.
“We do respect contracts,” Mercado said although she noted that the government “[would] try to [be] on the side of commuters in terms of not having a fare hike.”
Pressed for details, she clarified that “there won’t be any LRT fare hike” until the government has spoken to Light Rail Manila Corp. Metro Pacific president Jose Ma. K. Lim said that a meeting was set for this week.
Other options eyed
Mercado added that the DOTr was also exploring other options aside from providing additional subsidies.
Under the PPP contract, fares should be adjusted every two years. Railway fares were last adjusted on Jan. 4, 2015.
Operations of the LRT Line 2 and the Metro Rail Transit Line 3 are already partially subsidized by the government. The three railway lines serve over a million commuters daily.