Keeping fares for a long period at a very low level, in the absence of a sound financial situation, threatens the sustainability of the services. The long-term effect of the current policy will be to further reduce the quality of the service provided, as well as the number of public transportation units available to the inhabitants of the capital. The purpose of maintaining an affordable price for everyone can make the situation worse as some transport routes may disappear. And a possible financial crisis at the municipal level, under significant conditions as regards budget allocations, may affect the activity of Chisinau Electric Transport Administration (RTEC) and Urban Bus Park (PUA), according to an analysis of the Institute for European Policies and Reforms (IPRE) concerning the cost of public transport in Chisinau, IPN reports.
According to IPRE, there is no such thing as an absolutely fair transport tariff. Local authorities must strike a balance between accessibility, availability and fairness. A mechanism should be created that would initiate the fare review process. Adjusting the fares does not have to be an automatic action, but a transparent process, with full participation of all stakeholders. For example, one of the main conditions for revising the tariff should be its correlation with the inflation index.
Thus, once the cumulative inflation justifies the increase in the fare by one unit (e.g. from 2 to 3 lei), the local authorities should initiate the procedure of revision of the fare. If this logic is applied, the cost of travel by trolleybus should have increased to 3 lei in 2016, while the next adjustment of the fare to 4 lei, according to the inflation target, should take place in 2022.
The Institute recommends the local public administration in Chisinau to develop a strategy for subsidizing public transport so that the allocation of financial resources for its development is made according to the priorities and needs established together with the users of public transport. The allocation of money from the general budget must be conditioned by the improvement of the services provided and the reduction of unjustified expenses.
According to IPRE, the City Hall should develop a mechanism that would allow the initiation of fare review procedures. This will increase the predictability, both for the transport operators and for the citizens. An Urban Mobility Fund must be created to have a comprehensive approach to all transport components.
Given that RTEC and PUA consume over 11% of Chisinau's budget, it is extremely important to conduct audits in these two companies.
The current fares of two lei for trolleybus and three lei for bus were approved by a decision of the Chisinau Municipal Council in 2009.
