COMPANIES—particularly those engaged in big-ticket projects—should stop making the government a “hostage” by saying the construction of vital infrastructure is dependent on tariff increases under their concession agreements.
This was how Transportation Secretary Arthur P. Tugade answered a question pertaining to updates on the fare-hike petition submitted by Light Rail Manila Corp. (LRMC) for the Light Rail Transit (LRT) Line 1.
“It is being discussed. But they should not say the extension of the LRT is dependent on the rate increase. They should not make us a hostage,” he said on the sidelines of a recent forum hosted by the Economic Journalists Association of the Philippines.
He was alluding to a July 12 statement made by LRMC President Juan F. Alfonso, who said the rate increase will “assure” the construction of the first phase of the Cavite extension of the train line, as this will “give banks the confidence to lend the company funds” for the project.
Sought for comment, Alfonso noted his group will move forward with the construction of the extension even without the tariff adjustment.
“We are already committed to building the Cavite extension. We have already issued the notice to proceed to the engineering, procurement and construction contractors Bouygues and Alstom,” he told the BusinessMirror.
He added his group has completed the clearing operations for the pre-cast yard to give way to the plant where the company will be fabricating the viaduct beams.
The yard is located in Sucat, Parañaque.
“As far as fare hike is concerned, we are still applying and hoping to secure approval within the year,” Alfonso said.
The company is seeking an increase of about P5 to P7, resulting in P25 in average fares, or about the same price as bus rides.
Currently, fares for LRT 1 rides range from P15 to P30. Since it took over the train line in 2015, no fare adjustment has been implemented so far.
The provision for a 5-percent tariff adjustment every two years is spelled out in the concession agreement signed between the transportation department and the private company.
The current fare in LRT 1 is P15, P20 and P30, depending on distance traveled.
Based on the concession agreement, Alfonso said earlier, the government may provide for subsidy if it will not approve the fare adjustment.
Tugade noted this group is not keen on giving any form of subsidy for the fare increase.
“No. Not at this time. We don’t believe in subsidy. If you will do business with the government, there should be no form of subsidy and guarantee,” he said.
For now, Tugade said stakeholders should “wait” for the process to be completed. It is currently soliciting comments from the public as to the fare adjustment.
Alfonso said the company is keen on starting the full-blast construction of the extension by October.
Targeted for completion in about four years after the delivery of easement, the 11.7-kilometer Cavite extension will connect into the existing system immediately south of the Baclaran Station and run in a generally southerly direction to Niyog, Cavite.
It will consist of elevated guideways throughout the majority of the alignment, except for the guideway section at Zapote, which will be located at grade.
Eight new stations will be provided with three intermodal facilities across Pasay City, Parañaque City, Las Piñas City and Cavite. The new stations are Redemptorist, MIA, Asia World, Ninoy Aquino, Dr. Santos, Las Piñas, Zapote and Niyog. The intermodal facilities shall be located at Dr. Santos, Zapote and Niyog.
The new stations will be accessible to and from nearby community facilities, such as shops, schools, stadium and park, and will be located to suit passenger-flow routes from residential areas.
Pedestrian access to all new stations will be direct, safe and easy. Details, such as lighting to distinguish access points, pedestrian-cross striping and curb cuts for handicapped access, will be provided.
The company has invested P7.5 billion in the railway system so far since it took over in 2015.
LRMC is a company led by conglomerates Metro Pacific Investments Corp. and Ayala Corp. in partnership with Macquarie Infrastructure Holdings (Philippines) Pte. Ltd.
https://businessmirror.com.ph/tugade-lrt-1-should-not-make-infra-construction-dependent-on-fare-increase/
This was how Transportation Secretary Arthur P. Tugade answered a question pertaining to updates on the fare-hike petition submitted by Light Rail Manila Corp. (LRMC) for the Light Rail Transit (LRT) Line 1.
“It is being discussed. But they should not say the extension of the LRT is dependent on the rate increase. They should not make us a hostage,” he said on the sidelines of a recent forum hosted by the Economic Journalists Association of the Philippines.
He was alluding to a July 12 statement made by LRMC President Juan F. Alfonso, who said the rate increase will “assure” the construction of the first phase of the Cavite extension of the train line, as this will “give banks the confidence to lend the company funds” for the project.
Sought for comment, Alfonso noted his group will move forward with the construction of the extension even without the tariff adjustment.
“We are already committed to building the Cavite extension. We have already issued the notice to proceed to the engineering, procurement and construction contractors Bouygues and Alstom,” he told the BusinessMirror.
He added his group has completed the clearing operations for the pre-cast yard to give way to the plant where the company will be fabricating the viaduct beams.
The yard is located in Sucat, Parañaque.
“As far as fare hike is concerned, we are still applying and hoping to secure approval within the year,” Alfonso said.
The company is seeking an increase of about P5 to P7, resulting in P25 in average fares, or about the same price as bus rides.
Currently, fares for LRT 1 rides range from P15 to P30. Since it took over the train line in 2015, no fare adjustment has been implemented so far.
The provision for a 5-percent tariff adjustment every two years is spelled out in the concession agreement signed between the transportation department and the private company.
The current fare in LRT 1 is P15, P20 and P30, depending on distance traveled.
Based on the concession agreement, Alfonso said earlier, the government may provide for subsidy if it will not approve the fare adjustment.
Tugade noted this group is not keen on giving any form of subsidy for the fare increase.
“No. Not at this time. We don’t believe in subsidy. If you will do business with the government, there should be no form of subsidy and guarantee,” he said.
For now, Tugade said stakeholders should “wait” for the process to be completed. It is currently soliciting comments from the public as to the fare adjustment.
Alfonso said the company is keen on starting the full-blast construction of the extension by October.
Targeted for completion in about four years after the delivery of easement, the 11.7-kilometer Cavite extension will connect into the existing system immediately south of the Baclaran Station and run in a generally southerly direction to Niyog, Cavite.
It will consist of elevated guideways throughout the majority of the alignment, except for the guideway section at Zapote, which will be located at grade.
Eight new stations will be provided with three intermodal facilities across Pasay City, Parañaque City, Las Piñas City and Cavite. The new stations are Redemptorist, MIA, Asia World, Ninoy Aquino, Dr. Santos, Las Piñas, Zapote and Niyog. The intermodal facilities shall be located at Dr. Santos, Zapote and Niyog.
The new stations will be accessible to and from nearby community facilities, such as shops, schools, stadium and park, and will be located to suit passenger-flow routes from residential areas.
Pedestrian access to all new stations will be direct, safe and easy. Details, such as lighting to distinguish access points, pedestrian-cross striping and curb cuts for handicapped access, will be provided.
The company has invested P7.5 billion in the railway system so far since it took over in 2015.
LRMC is a company led by conglomerates Metro Pacific Investments Corp. and Ayala Corp. in partnership with Macquarie Infrastructure Holdings (Philippines) Pte. Ltd.
https://businessmirror.com.ph/tugade-lrt-1-should-not-make-infra-construction-dependent-on-fare-increase/
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