MRT fare increase deferred to next year

THE government has postponed the fare increases on the Metro Rail Transit and Light Rail Transit lines to the first quarter next year because there’s little time to do it, Transport Secretary Jose de Jesus said Thursday.

“I think it’s too late for this year because [the fare increase] still has to undergo some processes,” de Jesus told reporters on the sidelines of the Infrastructure Philippines 2010 Conference.

De Jesus said his department was still studying the impact of the proposed rates on the riding public, but declined to say by how much the fares would go up.

“It’s not a very simple process,” de Jesus said. Public discussions would have to be held before the rates were decided.

The Transport Department earlier said the new rates would range from P20 to P30, which would be comparable to bus fares.

The plan to raise the fares are aimed at reducing the government’s subsidies to train riders in the face of its ballooning budget deficit.

The fare increases aside, the government is also exploring how to raise non-rail revenue to moderate the burden on passengers while reducing its subsidies to them.

The government operates only the MRT 3 on Edsa. MRT Devco holds the rights to develop commercial premises for advertising and other promotional businesses that bring non-rail revenue to it.

But the government, through the Light Rail Transit Authority, has full control of the LRT lines.

The 13-kilometer MRT 3 runs from North Avenue in Quezon City to Taft Avenue in Pasay City, where the fares are P10 to P15.

LRT 1 and 3 run from Balintawak in Caloocan City to Baclaran in Pasay City, and from Santolan in Marikina City to Recto in Manila, respectively. The fares there are P12 to P20.

Metro Pacific Investments Corp. on Thursday expressed interest in operating MRT Line 3 after getting a foothold in the rail system through a “cooperation agreement” with Fil-Estate Corp.

Metro Pacific chairman Manuel Pangilinan said taking over the MRT 3 was “an option” for the group.

“We’ve been talking with the Sobrepeñas for a long time, and it has only crystallized just now,” Pangilinan said.

Metro Pacific earlier said it had sealed a “cooperation agreement” with Fil-Estate Corp. and the right to name three board directors in each of the four related companies: Metro Rail Transit Holdings Inc., Metro Rail Transit II Inc., Metro Rail Transit Corp., and Monumento Rail Transit Corp.

“The transaction involved, among other things, the appointment of new directors in the said MRT 3 companies who will pursue the continuing relationship between MRTC and the Philippine government under the build-lease-transfer agreement covering the MRT 3 line along Epifanio delos Santos Avenue,” Metro Pacific said.

Transport Undersecretary and MRT general manager Glicerio Sicat said the Pangilinan group had been in control of three board seats since Monday.

“They took over the three seats and [the Sobrepeñas] no longer hold any seats in the board,” Sicat said.

He said the Transport Department planned to negotiate with the Pangilinan group over the company’s privatization as a result of the transfer.

The Fil Estate Group holds about 29 percent of MRT 3 while the government owns the balance through Land Bank of the Philippines and Development Bank of the Philippines.

Privatizing MRT 3 is one of the Aquino administration’s eight priority projects for 2011.

“The maintenance will be bid out. We will be coming out with the terms of reference on the privatization of maintenance of the MRT by the second quarter of this year,” Sicat said. –Jeremiah F. de Guzman, Manila Standard Today