Business leaders back LRT-1 fare hike, citing need to honor contract terms

The Management Association of the Philippines (MAP) has expressed support for the proposed fare increase for Light Rail Transit Line 1 (LRT-1), emphasizing the importance of upholding the contract terms between the government and the rail line’s private operator.

In a statement issued on April 2, MAP said it recognizes the need to adjust fares on the extended LRT-1 line, noting that the last approved adjustment has not kept pace with the line’s growing operational requirements and service area.

“The issue now is the fare increase of the LRT-1—whether the current single journey fare of P15 and end-to-end maximum fare of P45 are sustainable, and should be increased to P20 and P55 inasmuch as the line is now up to Dr. A. Santos Avenue in Parañaque City,” MAP said.

The group added that the extension toward Dr. A. Santos Avenue was completed even without the implementation of the contractually mandated fare adjustment. The line is also expected to reach Zapote and Bacoor in Cavite in the near future.

MAP underscored its position in favor of the “sanctity of contract and the rule of law,” stressing that the government must honor its commitments to maintain investor confidence and ensure continued quality service for commuters.

“The agreed terms of the contract on the fare adjustment must be complied with by the government in order to protect the level of service required of the operator and prevent deterioration of service to the commuters,” the statement said.

The endorsement comes amid ongoing public hearings on the fare hike petition filed by the Light Rail Manila Corp. — a joint venture between Metro Pacific Investments Corp. and Ayala Corp. — which operates LRT-1 under a public-private partnership arrangement.

The private firm assumed operations and maintenance of LRT-1 in September 2015 through a P65-billion 32-year concession agreement with the Department of Transportation and the Light Rail Transit Authority.

Featured News
Explore the latest news from InsiderPH
Tuesday, 24 June 2025
Insight to the one percent
© 2024 InsiderPH, All Rights Reserved.