Financial Budget

This section explains the budget distribution from the materials to the labor of the whole
plan. This budget plan portrays the theoretical amount that this project will cost in the future.

Bill of Materials

Train components Price Costs

880 grade Steel Php 30,000/ton Php 1,482,199,112
Drivetrain – Induction motor Php 100,000/pc Php 7,000,000
Aluminum Sheet Php 192.76 / sheet Php 17,135,522.96
(200mmby300mm)
Minor components: cables, --------- Php 3,000,000
wires, conductors, etc.
Total: Php 1,509,334,635.96

1,600,000,000

1,400,000,000

1,200,000,000

1,000,000,000

800,000,000

600,000,000

400,000,000

200,000,000

0
Steel Motor Aluminum Minor components

From the renovation of the LRT system from a Light railway to more advance train
railway, a 880 grade steel which consists of - carbon, manganese, silicon, Sulphur, Aluminum,
and hydrogen. This type of Steel will replace the present tracks which are less graded steel and
wider tracks. Theoretically, given a 1.043m wide tracks will help reach the train to reach its top
speed more than the present system.
 Light rail Transit requires rolling stock which refers to any vehicles that move in a
railway. With this train, a different set of motor is required which is the use of Induction motors
for the drivetrain. Every train will be consisting of 4 motors to optimize strength on producing a
better speed outcome.

The present Light railway train is composed of a big percentage of steel parts including
the framework. Given this light railway train different from a bullet train framework, sheets of
aluminum is required to replace the framework of the present train. One of the main reasons a
bullet train produces unbearable speed is an aerodynamic structure which Aluminum will give be
a huge additive to the aerodynamic capacity.

Minor components such as; wires, cables, conductors are also needed to be replaced for
the compatibility and safety of the train system. These minor components help increase the
efficiency of the system and the trains.

Labor

Jobs Quantity Bulk salaries (monthly)

Engineers 20 Php 500,000
Machine operators 60 Php 720,000
Construction workers 70 Php 525,000
Quality inspectors 20 Php 220,000
Total: Php 1,965,000

monthly

Engineers
Machine operators
Construction workers
Quality inspectors
 The budget on labor is tabulated above. From the construction of the plan to the
construction of machineries in testing the train products, engineers are necessity to this project.
In renovating the train wagons, civil and mechanical engineers are required to assess all the
problems and to produce what is planned. As for the machine operators, several of tests are
required to determine the quality of the products that are renovating. Partnered with these
machine operators are the quality inspectors which they are the workers who inspect if the
product will pass to the planned layout and also to give more suggestions regarding adjustments.
Lastly, the construction workers will be working to maintain the safety of the people and for the
system to be stable for the trains passing by.

Revenue

On the completion of the proposed project in the timeframe of 1-2 years, a total of Php
1,556,494,635 will be the final expenses of this project will produce. For 1-2 years, the whole
railway system will be closed and will be dealt to a 6.57 billion of the total loss of earnings. Yet,
after the completion of the proposed railway system, the fare will increase from Php 15-20 to
Php 20-25. From the 500,000-700,000 daily passengers there will be a theoretical increase of
passengers which is around 800,000+ daily passengers because of the new railway system.
Therefore, there will be a total of Php 5.8 billion of total annual income which is a huge increase
from the present total annual income of Php 3.28 billion.