Govt should hike LRT2 fare–study

THE Philippine government should increase the Light Rail Transit (LRT) Line 2 fare to make the system “sustainable,” a joint study by the Japan International Cooperation Agency (JICA) and the National Economic and Development Authority (NEDA) said.

According to Yasuhiro Kawa­bata and Hiroshi Aoki of Sanshu Engineering Consultant, the external evaluators of the project, “a timely advice to the government on the importance of amendment of the fare level” should be applied to make LRT Line 2 or Megatren sustainable.

Since its operation in 2003, the fare of P12 to P15—depending on the travel distance, with an average fare of P13.50—has been maintained, the study said.

The Megatren traverses Pasig, Marikina, Quezon City, San Juan and Manila, through the major thoroughfares of Marcos Highway, Aurora Boulevard, Ramon Mag­saysay Boulevard, Legarda Street and Recto Avenue.

“Comparing with fares of buses and jeepneys operated along the corridor, in case of riding of the whole section, 14 kilometers, the LRT 2 fare is set much lower by the intervention of the government,” the study said.

In case of riding the average travel distance of 7 to 8 kilometers, the LRT 2 fare is lower than those of buses by P2 to P3.

“The operating profit from the operation of Lines 1 and 2 has been continuously in a deficit,” the study said.

As of December 2007, LRT Line 2’s liabilities have already reached P44.1 billion.

A fare hike still needs government approval as it has to consider the passengers’ capacity to pay if the fare is increased by at least P2 to P5 for medium and long travel, the JICA-NEDA study said.

The study added that the numbers of passengers per day for the past four years are much less than expected. In 2005, the daily passengers for Line 2 were 114,800; 130,300 in 2006; 145,000 in 2007 and 160,500 in 2008.

“The reasons for fewer passengers are the line length served is short and the line is not extended to the area where more passengers are expected like Masinag and connection with other lines [LRT Line 1 and MRT 3] is inconvenient,” the study said.

An earlier study done by the Asian Development Bank (ADB) recommended a fare increase for the LRT Line 1 and 2. Failure to do so would require nearly P800 million a year in subsidies through 2015.

The ADB said the subsidy that Metro Manila commuters enjoy comes at the expense of all taxpayers.

The LRT Line 1 charges P12 for the first four stations and P15 for the rest of the route.

Line 2 charges P12 for the first three stations, P13 for four to six stations, P14 for seven to nine stations, and P15 for 10 stations.

The ADB said the financial restructuring needs of LRTA should be finalized.

“It is estimated that LRTA will require government help of P30 [billion] to P35 billion to meet its debt obligations over the next seven to eight years,” the ADB said.  –Darwin G. Amojelar, Senior Reporter, Manila Times