Low subsidy forces LRTA to cut budget for train rehab

March 26, 2024 | 12:00am

MANILA, Philippines — The Light Rail Transit Authority (LRTA) is cutting its budget for the restoration of trains to make the most of the lower subsidy given to the agency this year.

Thus, commuters would have to wait until 2026 before all of the inactive trains are deployed into the Light Rail Transit Line 2 (LRT-2).

Supposedly, the LRTA would spend P857 million—P257.1 million in 2024 and P514.2 million in 2025—to bring four trains back onto the tracks next year.

However, since the LRTA’s subsidy was slashed, the agency extended the restoration program for a year, until 2026, to consider its limited resources. Under the revised plan, LRTA will invest P85.7 million this year and P385.65 million each in 2025 and 2026 to rehabilitate the four trains.

Right now, commuters wait for a maximum of 10 minutes before a train arrives at a station. The restoration of idle trains would cut the waiting time in between stops to the benefit of riders.

The LRTA also delayed by a year the replacement of a signaling system that was damaged by a fire, as it reduced the 2024 budget for the project to P74 million, from P607.74 million.

On the other hand, the agency increased the allocation for systems maintenance, particularly for the purchase of spare parts, by a third to P445.6 million, from P336.16 million.

From zero, the LRTA also set aside P312.08 million for the maintenance of the LRT-2 system to ensure that the railway will suffer minimal service disruptions.

Originally, the agency requested a subsidy of P1.59 billion to bankroll programs and projects for the LRT-2. However, the government approved a subsidy of only P864.4 million for the LRTA in line with the push to consolidate finances in the post-pandemic era.

“The primary focus was directed toward ensuring the safety and reliability of the LRT-2 systems, its infrastructure and overall operational efficiency. This process [revision of corporate plan] also took into consideration the available funding sources, resulting in a revised project list for 2024,” LRTA said.

The LRTA requires P1.52 billion to fund its operations for 2024, and the agency will depend on revenues from rail and non-rail services to bridge the budget gap.

In 2023, LRTA grew its earnings by more than half to P1.65 billion, from P1.06 billion in 2022, due to the resumption of onsite schooling and work that raised the ridership in LRT-2.