As CBRT loan ends next week: City government races to resolve row

CEBU, Philippines — With barely two weeks left, the Cebu City government is trying to “cover all bases” as the September 30, 2026, deadline for the Cebu Bus Rapid Transit (CBRT) loan approaches, with efforts underway to resolve compensation disputes before the World Bank closes its financing window.

The Office of Mayor Nestor Archival, through Chief of Staff Kenneth Siasar, said in its latest press briefing that the city has received communications on the matter but is still reviewing them.

“Naa na’y gipadala nato nga communication sa office. But, wala pa pod nato na matan aw tungod kay gawas nga naa’y CBRT loan nga deadline na, naa pa’y mga affected nga mga private nga mga yuta nga gisaaran sa DPWH nga hangtod karon wala pa mabayri,” he explained.

Siasar added that the Office of the Mayor, together with the legislative branch, is planning steps to cover all bases.

“The Office of the Mayor together with the legislative or the Office of the Vice Mayor, atong giplansa aron nga we can cover all bases. Kay we’re moving forward na ta sa atong preparation, but naa pa’y mga apektado nga pamilya nga hangtod karon nagproblema because they were not given yet what is due to them,” he added.

He confirmed that some private properties affected by the proposed CBRT stretch had already been vacated without payment.

When asked if the payments were supposed to come from the Department of Public Works and Highways (DPWH), Siasar replied: “DPWH, yes.”

He clarified that while funds had been downloaded to the local government, payments remained delayed because of documentary requirements.

“Naa na na siya sa ataa, pero gitan aw pa nato ang guidelines nga gihimo sa previous kung mo fit in ba sila. So, atong gitan aw. I just received the communication last week,” he said.

In a previous executive session of the Cebu City Council, it was disclosed that the DPWH did not want to be directly involved in the acquisition process.

The department returned the funds to the Department of Transportation, leaving the Cebu City Government to handle the claims.

While P900 million was allocated by the national government for property acquisition near F. Vestil Street leading to the South Road Properties, payments were delayed due to incomplete documentation and requirements.

The World Bank’s restructuring paper confirms that the project has been reduced to only the 2.38-kilometer first phase after $84.9 million in financing was canceled due to persistent delays in right-of-way acquisition and resettlement.

The restructuring history shows how the project was repeatedly scaled down.

Approved in 2014 with $141 million in World Bank financing, plus support from AFD, the CBRT was envisioned to deliver 12.16 kilometers of trunk and feeder routes.

A midterm review in 2020 revealed extensive resettlement needs, prompting the government to implement the 3.8-kilometer Mambaling–Bulacao section outside project financing.

Loan closing dates were extended multiple times, from June 2021 to June 2023, then to September 2023 and January 2024, before a fourth restructuring pushed the deadline to September 30, 2026.

In January 2026, the government requested the cancellation of $59.9 million from the IBRD loan and the entire $25 million Clean Technology Fund grant, leaving only $56.1 million in active financing.

As of mid-2026, only $40.62 million had been disbursed.

The World Bank rated the project “unsatisfactory” in both implementation progress and achievement of objectives, citing procurement failures, counterpart funding shortfalls, and unresolved right-of-way issues.

With less than two weeks before the loan closes, the Cebu City Government is reviewing claims and documentation while interim operations using the existing Cibus fleet continue along the completed corridor from the South Road Properties to IT Park.

Future phases of the CBRT are expected to rely on a Public-Private Partnership framework once the World Bank loan expires. — (FREEMAN)