NEDA pushes P2 LRT 2 fare hike, cites financial woes

THE National Economic and Development Authority (NEDA) has recommended a fare hike of at least P2 for the Light Rail Transit (LRT) Line 2 to cover operating expenses.

“As revenue barely covers cost for operating expenses, it is recommended to consider an increase in fare by at least P2 as supported by the result of the beneficiary survey,” according to a joint study of NEDA and Japan International Cooperation Agency (JICA) conducted last year.

The LRT 2 runs from Recto in Manila to Santolan in Marikina City.

Based on the beneficiary survey result, 70 percent agreed that LRT 2 is an expedient means of transportation to their place of work, social services and commercial establishments.

The survey also revealed that travel time was cut to more than 16 minutes.

The LRT 2, also called “Megatren,” traverses the cities of Pasig, Marikina, Quezon, San Juan and Manila along the major thoroughfares of Marcos Highway, Aurora Boulevard, Ramon Magsaysay Boulevard, Legarda Street and Recto Avenue.

“We welcome the result of the study. The fare should have been increased six years ago,” Melquiades Robles, administrator of Light Rail Transit Authority said.

Since the LRT 2’s start of operation in 2003, the study said the fare structure of P12 to P15 has been maintained.

The study said the operating profit from the operation of LRT 2 has been continuously in a deficit.

As of December 2007, the LRT 2’s liabilities amounted to P44.1 billion.

The study added that the numbers of passengers per day for the past four years have been much less than expected.

In 2005, the daily passengers for LRT 2 were 114,800; 130,300 in 2006; 145,000 in 2007 and 160,500 in 2008.

The system has a load factor of 39 percent in 2008 from 34 percent in 2007. –DARWIN G. AMOJELAR Senior Reporter, Manila Times