Fabian’s House committee tackles LRT/MRT fare hike PDF Print E-mail
Wednesday, 01 June 2011 16:25

A joint congressional committee hearing last Tuesday has agreed to defer action on the proposed fare rate hike by the LRTA and MRT, operators of the country’s light railway transit system.

The committees on Transportation and Government Enterprises and Privatization headed by Rep. Roger Mercado of Leyte and Zamboanga City District 2 Rep.  Erbie A. Fabian called off the planned fare hikes pending resolution of key issues which members of both committees want clarified at.

Among these are guidelines utilized by both light railways operators in factoring the additional hike in fare rates being proposed.

Also being questioned is the planned ‘privatization’ of the MRT  and LRT operations to a group of local and foreign investors who expressed intent on taking over the operations of the

The legislators wanted to review vital documents relative to the operations of both rail transit system which the agencies concerned have failed to turn over to the committees up to the present time.

Among these are the terms of reference between the government and private sector investors , financial statements and capital expenditures of the twin rail transit system.

A key official of the LRTA and MRT, Atty. Hernando Cabrera said key documents which the congress members were earlier seeking, will be delivered next week.

House members were zeroing in on the additional 15 billon pesos which the government will continue to pour into the light rail system of the metropolis.

They expressed wariness over allowing a fare hike in both the LRT and MRT while a privatization program is ongoing.

The DOTC through Atty. Cabrera was also summoned for next week’s hearings to give members a
briefing of the privatization program of the two rail transit systems.

Committee members wanted to be clarified on the key provisions of the privatization plan before deciding on the program itself.

Other committee members were also against the grant of a fare hike as this will add to the financial burdens of the people especially since classes is set to commenced soon.

DOTC officials were invited to next week’s hearings to help shed light on the programmed  fare rate hike and the privatization plan.