No automatic fare hike should LRT-2, MRT-3 be privatized - Dizon

Metro Manila, Philippines - A planned privatization of operations of two rail systems will not automatically result in higher fares, Transportation Secretary Vince Dizon said.

The privatization of the Light Rail Transit (LRT-2) and Metro Rail Transit (MRT-3) was raised in light of back-to-back glitches and the need to improve services.

In a press briefing on Thursday, June 26, Dizon noted the need for public-private partnership to upgrade the rail system in light of issues encountered by the LRT-2 on Wednesday, June 25.

Dizon said the train line bidding process will begin this year.

The Light Rail Transit Authority from Manila to Antipolo, Rizal carried out partial operations for five hours on Wednesday due to a technical glitch.

Dizon said the government will still regulate fares if the train lines are privatized.

“Makakaasa pa rin ang mga kababayan na hindi naman ganoon magiging kataas ang magiging pamasahe kahit na maging private na ang operator ng mga train systems na ito,” he said.

[Translation: Commuters can still be assured that fares will not be raised too high even if the train systems will be operated by a private entity.]

Of the three major rail lines in Metro Manila, only LRT-1, which runs from Doctor Santos in Parañaque City to Fernando Poe Jr. Station in Quezon City, is privately operated through the Light Rail Manila Corporation.

Dizon said the government is coordinating with the World Bank’s International Finance Corporation to speed up the train line’s privatization process, and the Asian Development Bank for MRT-3. The train line runs from North Ave. in Quezon City to Taft Ave. in Manila.