Government to save P20 million by operating LRTA

The Light Rail Transit Authority (LRTA) is projected to save the government some P20 million by operating LRT Line-1 on their own, without any assistance from ‘expensive’ technical maintenance contractors, local or foreign, in 45 days.

LRTA management said that with the non-extension of the LRTA’s contract with Belgian technical consultant Transurb Technirail (TNR) last May 15, the LRTA would be able to save at least P13 million a month.

Operating the rail line on their own through their own engineers and technicians, it was learned, that the LRTA expects to spend only from P12 million to P15 million in labor expenses for 30 days or some P18 million or P22.5 million in 45 days.

In a recent interview, lawyer Teodoro Cruz, LRTA administrator, revealed that the TNR was being paid a hefty P28 million a month to handle the technical operations of Line-1.

The LRTA is currently running the rail line by themselves due to the non-renewal of the TNR’s contract which originally expired February 2002.

With the government’s failure to immediately conduct a bidding for the contract, the TNR’s P28 million a month or P336 million a year contract, had been extended continuously for more than a year, from February 2002 to last May 15.