The regional government will contribute €515.9 million to financing Metro de Madrid in 2021
The Community of Madrid will contribute €515.9 million to Metro de Madrid next year, after having approved Metro de Madrid's new contract-programme for the period 2021-2024, this week. This contract-programme regulates relations between the underground and the Madrid Regional Transport Consortium.
The regional government's contribution is to finance the part of each ticket that is not paid for by the user and is subsidised by the administration. The Regional Transport Consortium has set an equilibrium tariff of €1.65 per trip, based on a forecast annual demand of 557.5 million trips.
The contract-programme provides for the financing needs of Metro de Madrid, so that the provision of this public transport service is guaranteed every year.
This agreement makes it possible to regulate and quantify Metro's objectives for each financial year, establishing the obligations of the public company in the production of the services established by the Consortium, the body that coordinates and controls the different means of public transport providing service in the region.
SALE OF TICKETS AND TRANSPORT CARDS
Metro de Madrid's financing needs for 2021 amount to €920 million. Of this amount, the regional government contributes €515.9 million, while the remaining €404.1 million will come from the proceeds of the sale of tickets and transport cards.
Metro's new contract-programme will last four years, from 1 January 2021 to 31 December 2024, and may be extended for a further four years. From a financial point of view, the only financial year for which economic conditions have materialised so far is 2021.
Throughout next year, Metro de Madrid and the Regional Transport Consortium will analyse and adjust the variables for the remaining years of the contract-programme, which will be set out in an addendum.