Senator Ralph Recto, file photo from Senate PRIB
MANILA, Philippines – Senate President Pro-Tempore Ralph Recto said on Thursday that Metro Rail Transit (MRT) has no reason, in the face of its recent fare increase, not to install needed hand straps worth P2.25 million that will help prevent passengers from falling due to sudden stops.
In a statement, Recto said the P2.25-million cost of the hand straps is a drop in the bucket of its farebox income and government subsidy.
"An MRT spokesman indicated that the requisition of the hand straps still has to be processed, but it wad already been included the procurement program that was submitted to the Senate," Recto disclosed.
Recto remarked that, if MRT has a hard time buying hand straps, then it speaks volumes about government's capacity to improve the quality of its service in the 17-km, 13-station line that carries 600,000 passenger rides daily.
"If a simple band-aid solution like the hands straps cannot be addressed, then how much more when it comes to critical issues like train cars and rail maintenance?" Recto asked.
Recto insisted that MRT should source funds for hand straps and other repairs from its farebox income, as that is what's clearly stipulated in the 2015 national budget.
"It says in one of the provisions of RA 10751 that administrative costs, maintenance fees and special repairs shall be principally funded out of passenger fares," he said.
MRT is seen to earn P1.1 billion more a year from the fare hikes that it imposed starting January 4 this year, up from P1 to P11 for the base fare, plus an additional P1 per kilometer of distance traveled.
One of the justifications for the increase is that MRT was going to improve its service, Recto said.
"In the official DOTC press release announcing the fare hike, the agency promised that with increased fares will come better MRT services," Recto said.
Recto added that on top of fare revenues, part of the MRT revenue stream is the P7.23 billion in direct subsidy that it will get from the national government this year.
Of this amount, P2.57 billion will be for "MRT-3 rehabilitation and capacity expansion" and P4.66 billion is for rider subsidy.
There is also P18.4 billion in the Unprogrammed Fund section of the 2015 national budget that can be tapped for MRT3 rehabilitation and capacity expansion (P7.4 billion); payment of taxes of MRT-3 Build-Operate-Transfer contract (P6.5 billion); and P4.4 billion for the equity buy-out of the MRT Company.
"Because the release of these funds can only be triggered by excess revenues or new loans, then this is what is considered as contingent subsidy dependent on certain conditions," Recto said.
"Just the same, we're looking at P38.88 billion gross rail sector funding in the national budget covering LRT, MRT and PNR projects and operations for this year," Recto said.
Recto said the Department of Transportation and Communications submitted to the Senate a list of 18 MRT rehabilitation projects that will be implemented from 2014-2016 at a total cost of P6.8 billion.
"And yet, here you have difficulty procuring hand straps?"
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