In an interview on Monday, Feb. 20, 2023, Transportation Undersecretary Mark Steven Pastor said they had to negotiate with the World Bank and AFD to extend the loan’s validity in order to finance the project, which is set to break ground on Feb. 27.
“We have resolved the funding issue for the Cebu BRT, but it’s just that for this year, we are in negotiations with the World Bank and AFD in terms of loan extension,” Pastor said.
“We have two loans: AFD will expire on March 31, World Bank will expire on June 30. It’s just a matter now of how many years and what are the parameters. This is a negotiation of the DOTr (Department of Transportation) with Neda (National Economic and Development Authority) and the DOF (Department of Finance),” he added.
The AFD granted the Philippine government a loan worth $57.4 million for the project.
In Cebu City, local officials are “confident and positive” that the loan for the BRT project in Cebu will be extended.
Cebu City BRT focal person Roberto “Bu” Varquez told SunStar Cebu on Wednesday, Feb. 22, that the loan is being sought to be extended until 2025 which is the target completion date of the entire project.
Varquez said Mayor Michael Rama had already talked with the executives of the World Bank in 2022 wherein Rama expressed the City Government’s commitment to complete the BRT project.
He added that the World Bank evaluated if the project has been awarded to a contractor and if it has the support of the local government. These requirements were already accomplished by the City.
Security prep set for groundbreaking
Meanwhile, officials of the Cebu City Police Office (CCPO) have started preparing for the visit of President Ferdinand “Bongbong” Marcos Jr. during the Cebu BRT project groundbreaking on Feb. 2.
Lt. Col. Janette Rafter, CCPO deputy director for operations, said that while they are still awaiting for the official itinerary of the President’s visit, they have already put up initial security preparations for Marcos and members of his Cabinet who will be attending the groundbreaking.
Rafter added that the Cebu City Government had also called for a coordination meeting to prepare for the President’s visit.
Police will also be on high alert throughout Marcos’ visit, especially after they received reports that several cause-oriented groups will be holding rallies during the groundbreaking activity.
Rafter said they will be deploying their Civil Management Disturbance team to ensure that the rally will remain peaceful.
She also urged protestors to secure a permit from the Cebu City Government if they plan to hold protest rallies during the activity.
The long-overdue BRT project in Cebu had experienced several delays ever since the national government, through the Department of Transportation (DOTr), received a $116-million loan from the World Bank and AFD in 2014.
The project has been delayed for a decade already due to various issues, including politics.
Hunan Road and Bridge Construction Group Ltd. was awarded by the DOTr with the Package 1 contract for the BRT project. Package 1 will run from the Cebu Provincial Capitol through Osmeña Boulevard, and right to Cebu South Bus Terminal (CSBT) on N. Bacalso Ave. Package 1 has a budget of P17.3 billion.
According to Vasquez, the BRT project implementer will also finalize the detailed engineering design for Package 2 while it is working on the civil works for Package 1.
Package 2 of the BRT is composed of the routes from the South Road Properties (SRP) to the CSBT and another route from Capitol to the Cebu IT Park in Barangay Lahug.
According to Vasquez, the second package of the BRT project is challenging since there are a lot of roads right of way that need to be acquired from private owners.
The BRT is a 13.180-kilometer bus lane from Mambaling to Cebu IT Park. It is expected to cater to about 160,000 passengers per day.
The project is expected to be in full operation in 2025. (TPM, IRT, AYB / TPT)