Metrostar to implement old rate scheme in June

The Department of Transportation and Communications (DOTC) assured the foreign creditors of the Metrostar Express that it will implement the original fare scheme of the rail system in June.

The assurance was made to prevent the creditors from getting alarmed over the reduction of Metrostar fares starting Feb. 1.

DOTC Undersecretary Carlos Borromeo said the government still has the "political will" to reimplement the P17 to P34 fares of Metrostar from North Triangle in Quezon City to Buendia Avenue in Makati City.

Borromeo noted the fare setting would be restored and increased to a maximum of P40 when the rail system becomes fully operational up to Taft Avenue station in Pasay City in June.

Starting yesterday, Metrostar fares was adjusted to P12 to P20, depending on the distance of travel.

The DOTC official admitted that the Metro Rail Transit Corporation (MRTC), builder of Metrostar, feared that the creditors would be reluctant to release loans for phase two of the project.

Phase 2 involves the extension of the $ 655-million facility from North Triangle to Monumento in Caloocan City.

"We came up with this fare setting with the intention of not seeking a subsidy from the government for the operation of Metrostar and the payment of amortization," Borromeo added.

This fare structure is expected to generate revenues to pay these financial obligations, provided Metrostar achieves its desired target of 600,000 passengers daily.

Borromeo said they are confident that passenger volume for Metrostar will pick up when its three remaining stations in Ayala Avenue, Magallanes and Taft Avenue becomes operational. --