Plan for just 1 ticket for MRT, LRT delayed

COMMON TICKET: The use of a common ticket for all MRT and LRT train lines in Metro Manila is a great idea, but its adoption is being delayed as contentious issues surface involving some bidders vying for the ticketing contract.

The Department of Transportation and Communication deferred last Monday announcing a winning bidder after questions were raised about the technical qualifications and the financial offers of some of the interested parties.

For one, the highest bid of P1.08 billion offered by AF Consortium was questioned after allegations were made that its members — Ayala Land and Metro Pacific Investments Corp. — were in conflict of interest.

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CONFLICTING INTERESTS: Bidding rules bar bidders with a 50-percent outstanding share vote in a firm involved in operating LRT, MRT or a transport service.

Ayala Land, owner of MRT Corp. that operates MRT, reportedly owns 19 percent of AF, while MPIC holds 48 percent. Together, they own 67 percent of the consortium, which runs against the 50-percent rule laid down by the bids and awards committee.

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Some losing bidders and consumer groups have pointed out that the consortium members were in conflict of interests. The law prohibits just one company managing as both train operator and payment (ticketing) operator.

Also, MPIC is reportedly a party in an arbitration case against the government for failure to pay rental equity payments for MRT — thereby disqualifying it under the rules, according to AF rivals.

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STAGGERED PAYMENT: In its bid, the AF Consortium offered to pay the government P1.08 billion, besting by P127,000 the offer of another bidder, SM Investments Corp.

The higher bidder undertook to pay only P279 million upon award of the contract, and offering to pay the remaining P809 million in staggered amounts for 10 years. It added that it would start paying when the ridership volume fetches at least P750 million.

But the MRT, designed to handle a daily ridership of 330,000, has an actual ridership of only 1.2 million. When will ridership reach the range of 2.8 million to 4.2 million daily to be able to turn in a daily revenue of P750 million?

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SUBSIDIZED FARE: The government has been subsidizing rail fare as both the MRT and the LRT are operating at a loss. Financial records of 2012 show that the LRT had a deficit of P4.704 billion while MRT’s deficit was P7.25 billion.

The average cost per passenger for the LRT1&2 lines was P34.74. Some 59 percent of this, or P20.46, was shouldered by the government, and only P14.28 was actually paid by the commuter.

In the MRT on EDSA, the average cost per passenger was P53.96, with 77 percent or P41.46 subsidized, leaving P12.40 being paid by the passenger. There has been no rail fare increase since 2003. –Federico D. Pascual Jr. (The Philippine Star)