Govt should increase train fares, ADB says

MANILA, Philippines - The Asian Development Bank (ADB) has urged the government to increase train fares, a move which would avert an increased deficit for the Light Rail Transit Authority (LRTA). Failure to impose higher train fares may require government to provide financial assistance to the LRTA, which runs LRT Line 1 and 2, the Manila-based regional lender said in a report. “It is estimated that LRTA will require government help of P30-35 billion (estimated) to meet its debt obligations over the next seven to eight years," the ADB said. It has also urged the temporary suspension of the operations of the Philippine National Railway (PNR) to reduce its state subsidy. The ADB noted that the refusal of the national government to adjust LRT 1 and 2 fares will require about P800 million in subsidies annually until 2015. The lender said the subsidy that Metro Manila commuters enjoy comes at the expense of all taxpayers. The LRT Line 1 charges P12 for the first four stations and P15 for the rest of the route. Line 2 imposes a fare of P12 for the first three stations, P13 for four to six stations, P14 for seven to nine stations, and P15 for 10 stations. ADB said the government must move fast in its bid to privatize the rail operations and maintenance. “Unification of rail ticketing system for various lines should also be expedited," it added. To rationalize the country’s rail sector, the ADB said all operations of PNR should be temporarily suspended for two years while the South Commuter Rail line is under rehabilitation. GMANews.TV