Tuesday, November 4, 2008

Striking a balance between service and profit

In an article published in the Inquirer today, it was reported that a small mass of people from Bagong Barrio, Caloocan City, protested the DOTC's decision to reduce the number of stations of the LRT-1's North extension from 4 to 3. Although the 5.71km elevated line originally planned to have stations at Bagong Barrio, Balintawak, Roosevelt, and North Avenue (where it will connect seamlessly with the MRT-3), the DOTC decided to retain only 3. The initial plans were revised apparently because of the high costs of building a station (approximately P800 million), and studies showing that pedestrian traffic is considerably higher in Balintawak, Roosevelt and North Avenue, which will be retained.

The protesting residents of Caloocan City complained that they will not benefit from the LRT's extension because the stations are too far from where they live. However, LRTA administrator Mel Robles defended the revision of the plan saying that "studies show that Roosevelt and Balintawak would have the highest ridership. We are in the business of moving people. Where there is high density, we will go there."

While Pedestrian Pinoy agrees with the LRTA's position that any public infrastructure should be based on careful study, and not on the whims of politicians nor the tug and pull of politics, Mr. Robles's statement that the LRT would build stations only "where it is most profitable" is disconcerting at the least.

Crucial public infrastructure should focus on service, and not profit. This again is one of the problems posed by private investment in public works: companies are really more interested in the business aspect of the project, rather than providing a service to the public. There really should be a balance between making life better for the people, and earning from infrastructure. Surely, profit should not be ignored, since ultimately, in a middle-income country like ours, big projects are sometimes funded by official development assistance from other countries (i.e., debts), or are only possible through the participation of the private sector through various schemes (build-operate-and-transfer, build-own-and-operate, build-lease-and-transfer, etc.). Debts have to be paid and private corporations have to be assured that they will not lose money.

Regardless of what drives the development and construction of public infrastructure, the government should not lose sight of the primary goal: that its decisions and actions should be a service to the people.

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