Municipality Decision To Double Subway Fares Hit Consumers Pockets: Consumers Association
16.07.2011,
02:17
The decision of the Yerevan municipality to double subway’s fare from 50 drams to 100 drams has hit the pockets of consumers, affecting first of all the national subsistence level, Armen Poghosian, chairman of Consumers Association
YEREVAN, July 15. / ARKA /. The decision of the Yerevan municipality to double subway’s fare from 50 drams to 100 drams has hit the pockets of consumers, affecting first of all the national subsistence level, Armen Poghosian, chairman of Consumers Association, a non-governmental organization defending consumers rights, told a news conference today. He said as a result the number of people traveling by subway has approximately slashed from 10 to 20 percent.
‘I can not say the exact number because the management of the facility refuses to reveal any number,’ he said.
The Yerevan authorities say that the subsidized underground serves up to 20 million passengers a year, or only about 10 percent of Yerevan’s total passenger traffic. Even after the fare rise, the underground commuter train service will not be paying its way and will still rely on a subsidy as serving one passenger costs an estimated 160 drams.
According to the municipality, the rise in fare is stipulated by an agreement Armenia signed with the European Investment Bank and the European Bank for Reconstruction and Development (EBRD) which have committed to provide a 10 million Euros loan and a 5 million grant for modernization of the facility.
"I agree that the subway does not cover its costs, but the fact is that nowhere in the world public urban transport, in particular, electric transport, does cover all costs and needs government subsidies", said Pogosyan.
He argued that the city authorities should diversify infrastructures to cover the subways costs instead of raising fares.
"According to the master plan of Yerevan, the number of minibuses in the city shall not exceed 19.2% of total transport vehicles, but today vans account for about 75%. It appears that instead of reducing their number, the authorities create preconditions for the increasing of their number," he added.
Pogosyan also noted that the losses of the subway over the past 20 years were mainly due to the fact that not a single new station was built. –0—
‘I can not say the exact number because the management of the facility refuses to reveal any number,’ he said.
The Yerevan authorities say that the subsidized underground serves up to 20 million passengers a year, or only about 10 percent of Yerevan’s total passenger traffic. Even after the fare rise, the underground commuter train service will not be paying its way and will still rely on a subsidy as serving one passenger costs an estimated 160 drams.
According to the municipality, the rise in fare is stipulated by an agreement Armenia signed with the European Investment Bank and the European Bank for Reconstruction and Development (EBRD) which have committed to provide a 10 million Euros loan and a 5 million grant for modernization of the facility.
"I agree that the subway does not cover its costs, but the fact is that nowhere in the world public urban transport, in particular, electric transport, does cover all costs and needs government subsidies", said Pogosyan.
He argued that the city authorities should diversify infrastructures to cover the subways costs instead of raising fares.
"According to the master plan of Yerevan, the number of minibuses in the city shall not exceed 19.2% of total transport vehicles, but today vans account for about 75%. It appears that instead of reducing their number, the authorities create preconditions for the increasing of their number," he added.
Pogosyan also noted that the losses of the subway over the past 20 years were mainly due to the fact that not a single new station was built. –0—
