House urged: Intervene in LRT, MRT fare hike

MANILA, Philippines - Lawmakers from the Gabriela party-list group wants the House of Representatives to intervene in the ongoing public consultations on the proposed fare increases for Light Rail Transit (LRT) and Metro Rail Transit (MRT) after the Department of Transportation and Communications (DOTC) sought a P10 hike for full-fare tickets.

Reps. Emmerenciana de Jesus and Luzviminda Ilagan filed House Resolution 137 directing the House committee on transportation to conduct an inquiry on the foreign loans secured by the Philippine government to finance the commuter train systems.

“We filed this resolution to protect the riding public from shouldering the real cost factors passed on by the Aquino administration, which are the accumulating loan burdens, and the overpriced rate of return set for the build, lease, and transfer agreement for the LRT line extensions and operations,” De Jesus said.

She said the DOTC has been justifying fare hikes with “the claimed need to reduce taxpayer subsidy losses and assure investors a return of their investment funds.”

The lawmakers, however, cited a study conducted by an inter-agency committee – composed of the Departments of Finance, Budget and Management, the National Economic and Development Authority, and Malacañang – that found that the 25-year contract with private firms prevented the government from negotiating what the body declared as the “onerous” 15 percent rate of return.