E-bus program draws at least 30 Cebu coops

CEBU, Philippines —  At least 30 transport cooperatives across Cebu have signified interest in joining the government’s electric bus modernization initiative, which offers low-interest financing and no down payment for qualified applicants.

The initiative, spearheaded by the Department of Transportation (DOTr) and the Department of Trade and Industry (DTI), seeks to encourage transport cooperatives to shift to electric buses through a loan-based financing model with low interest rates and no required down payment.

Provincial Planning and Development Officer Elizar Sabinay Jr. said Cebu has been identified as one of the priority areas for the nationwide electric vehicle (EV) rollout outside Metro Manila.

“The Province of Cebu is identified as one of the priorities in terms of mass EV rollout nationwide, so outside Metro Manila, it is Metro Cebu,” Sabinay said during an interview yesterday, May 25.

Sabinay said Governor Pamela Baricuatro earlier met with officials of the Small Business Corporation (SBCorp) in Manila, where discussions focused on prioritizing Cebu for the deployment of electric buses intended for public transportation.

He said the provincial government’s role was to organize and gather interested transport cooperatives for orientation sessions and onboarding related to loan applications under the program.

“Ang commitment was the province to gather all those interested transport cooperatives for the orientation and onboarding of loan application,” he added.

According to Sabinay, at least 30 transport cooperatives have already completed and submitted their requirements, which were endorsed last Monday for online processing and evaluation by SBCorp.

The financing facility is backed by a P2-billion allocation under SBCorp through the DTI to support the government’s EV transition program, which also forms part of broader efforts to address rising fuel costs and energy concerns.

Under the arrangement, qualified cooperatives may apply for a maximum of three electric buses each.

Each unit costs around P4.5 million, although transport groups are expected to shoulder only about P1.5 million through financing since manufacturers will subsidize half of the total cost under a co-investment arrangement.

Sabinay said the structure is expected to ease the financial burden on transport operators, particularly cooperatives that previously struggled with the high upfront costs required under traditional modernization financing schemes.

He explained that unlike existing modernization programs, where operators usually secure loans from Land Bank of the Philippines or the Development Bank of the Philippines and provide down payments, the EV program does not require initial cash-out once the loan is approved.

“But with this, there is no down payment as long as the loan is approved automatic, your order will be immediately checked in,” Sabinay said.

He added that applications are processed online and approval may take from seven days to two weeks, depending on the evaluation by SBCorp.

Among the documentary requirements are SEC registration papers, business permits, annual audit reports, and bank account details.

Once approved, transport cooperatives may receive their units within approximately 120 days, which covers manufacturing and delivery to Cebu.

Sabinay said the Land Transportation Franchising and Regulatory Board (LTFRB) currently has around 60 accredited transport cooperatives in Cebu, with cooperatives being prioritized under the program as part of the Public Utility Vehicle Modernization Program.

He noted that while corporations may also express interest, the government is giving preference to cooperatives because of their existing role in the modernization initiative.

Most of the applicants currently operate within Metro Cebu, although transport groups from areas such as Sibonga and Danao City have also expressed interest in joining the program.

He added that electric buses could significantly reduce operating expenses for transport groups, particularly fuel costs, which may help improve sustainability and service reliability.

“If you ride man gud ang EV, it will cut 50 percent of your opex (operations expense). Kay gasoline pa lang,” Sabinay said.

The EV buses have a capacity of 35 passengers, including 25 seated and 10 standing passengers.

Sabinay also said charging stations will be established in Cebu as part of the program’s supporting infrastructure, with suppliers expected to provide fast-charging facilities alongside the rollout of the units.

“And that’s the goal of the province. We’re not just looking at rolling out EV for private use but rolling out EV for public transportation use,” he added. — Jhiezel Jane Camarillo and Jona Mariel Apurado, CNU Interns/MRM (FREEMAN)