Gov’t inks deal for Cebu bus rapid transit system

MANILA, Philippines - The government signed a loan agreement for the development of a bus rapid transit system (BRT) in Cebu.

The project, which is seen to improve the urban passenger transport system in Cebu City, involves 176 buses and 33 stations that will service 330,000 people per day.

The World Bank will provide funding of $116 million from the International Bank for Reconstruction and Development (IBRD) and $25 million from its Clean Technology Fund (CTF).

The loan agreement was signed by Finance Secretary Cesar Purisima on behalf of the government.

Once completed, the project is expected to service an average of 433,000 individual trips per day.

The government and the World Bank chose to undertake the development of a bus rapid transit system because of its low cost (five percent to 10 percent of rail), quick construction (around two years), and its higher quality of service despite having the same capacity as rail.

Cebu City was also a prime location for the BRT system, as it is governed by a single local government unit supportive of the project and has high Public Utility Jeep (PUJ) dominance with no significant bus presence.

The Department of Transportation and Communications will serve as the implementing agency.