Fare hike delay costs LRT-1 P1.6 B in foregone revenues

Foregone revenues from the delay in the fare hike for the Light Rail Transit Line 1 (LRT-1) may reach P1.6 billion by next year, the top official of the Light Rail Manila Corp. (LRMC) said.

In an interview, LRMC president and CEO Juan Alfonso said the company has been registering a fare deficit of about P400 million a year since 2016 with the delay of the fare increase for the LRT-1 operations.

This would total to P1.6 billion if it continues next year.

Alfonso said the company first filed a petition for the fare hike in 2016, and another one last year.

He said the company would file for another fare hike increase next year.

“We’re waiting for the Department of Transportation (DOTr) to revert what the plan is,” Alfonso said.

Last year, LRMC petitioned for a P5 to P7 hike in the end-toend fare of the LRT-1, which runs from Roosevelt in Quezon City to Baclaran in Parañaque.

A five percent increase in LRT-1 fares every two years and the extension of the train line to Cavite are part of the government’s concesssion with LRMC which is composed of Metro Pacific Investments Corp.’s Metro Pacific Light Rail Corp. Ayala Corp.’s AC Infrastructure Holdings Corp., and Macquarie Infrastructure Holdings (Philippines) Pte Ltd.

With the delay in fare increase since 2016,Alfonso said this has had a direct impact on revenues.

“Well of course, revenue impact is direct. We have to look at different ways how to stretch ourselves, manage expenses and how to make more money in other things. So it’s a challenge,” he said.

Asked if they are open to a staggered implementation of a fare increase, Alfonso said they are not yet in this stage of discussions.

“We’re working with them (DOTr) so we can find resolution on that,” Alfonso said.

The company earlier said the fare increase would assure the construction of the LRT Cavite extension.

Once built, the P30-billion Cavite extension will allow travel from Baclaran to Sucat to only 15 minutes; to Las Piñas, 20 minutes; and to Bacoor, 30 minutes.

LRMC was awarded the publicprivate partnership project to operate, maintain, and extend the LRT-1 in 2014.