Bayan urges Congress: Review P7.5B guarantees to LRT 1 operator
MANILA, Philippines—The Bagong Alyansang Makabayan (Bayan) urged Congress to review the contract on the management of the Light Rail Transit Line 1 (LRT1) following President Aquino’s confirmation that the private concessionaires were asking for P7.5 billion in penalties.
“We ask Congress to undertake a thorough review of the LRT1 contract in light of the penalty payments that are being charged by LRMC (Light Rail Manila Consortium),” Bayan secretary general Renato Reyes said on Wednesday.
Bayan disclosed last week that it got hold of a letter from Transportation Secretary Joseph Emilio Abaya asking Budget Secretary Florencio Abad to set aside the amount from the Risk Management Fund of the 2015 budget.
Aquino recently said the Department of Transportation and Communications and the LRMC (composed of Metro Pacific Investments Corp., Ayala Corp. and Macquarie Infrastructure Holdings) were still in preliminary discussions.
“Abaya and other officials should come clean as to the full extent of government’s financial obligations to the private operator LRMC,” Reyes said.
“We ask Congress to look into the use of billions in discretionary funds that do not pass scrutiny by lawmakers during budget hearings,” he added.
Article continues after this advertisementReyes has warned that when LRMC takes over operation of LRT1 this Saturday under the 32-year contract, it will have the right to collect fares and demand additional deficit payments from the government. Erika Sauler/CDG
