Public transportation to cost more

Public transportation costs in Ulaanbaatar will go up from January 1, 2011 but users will not have to pay more as the 26 bus companies will continue to receive subsidies. Transport operators have complained of increasing losses and announced that there would be flat increase of MNT100 on all tickets. This means an adult ticket would be MNT400, children will pay MNT200 and those who now travel free would pay MNT100.

The Chief of the Public Transportation Board (PTB), P.Narantsetseg, explained the situation to media when he answered questions.

Will people have to pay MNT400 for bus travel?

We have discussed the matter with the companies and decided that individuals would not pay more and we shall continue to meet the operators’ losses. The term of the present agreement between the PTB and large bus companies of large size bus has been extended to April 15, 2011.

Why have the companies raised prices?

The companies say their losses have not been fully covered by the subsidies paid and will not be met by the provision of MNT30.9 billion for this in the capital city budget. Students now pay full charges when they travel on weekends and holidays. The budget provides MNT25.9 billion as subsidy for travel by the elderly and people with disability.

What will be done to meet the losses?

We have agreed to do it in phases and in several ways. For example, we shall pay all outstanding employees’ social insurance installments and the cost of buying equipment from Electric Transportation LLC from the capital city budget in 2011. This way we seek to protect citizens’ interests.