MANILA, Philippines - The government has cleared the P10.62-billion Cebu bus rapid transit project, which is expected to cut travel time and improve commuter experience.
The Department of Budget and Management on Tuesday said it has issued a forward obligational authority (FOA) to the Department of Transportation and Communications for a safer, more efficient and environment-friendly mode of travel in and around Cebu City.
The FOA covers P9.48 billion of the total project cost, funded by the national government and through loans from the Agence Francaise de Development, the International Bank for Reconstruction and Development, and the Clean Technology Fund.
The remaining P1.14 billion will be shouldered by the private sector and will be used for the purchase of motor vehicles.
The project, the first of its kind in the country, entails a segregated lane for buses, controlled dispatching, priority in stoplight signaling, fixed stops, and various technical components, all designed to increase passenger mobility.
Under the concept, 176 buses will run through dedicated bus-ways from Bulacao to Talamban villages in Cebu City, with a link to Cebu’s south road property. The buses will serve around 330,000 passengers a day.
Set for construction this year, the mass transit system will run on a 23-kilometer corridor with 33 stations.
“This forward obligational authority will allow the government to process the loans for the project. It will also help us avoid unnecessary commitment fees,” said Budget Secretary Florencio Abad.
As approved by the National Economic and Development Authority, the Cebu bus rapid transit system will be completed in 2018.
“Aside from improving public access to transportation, we also want to further stimulate economic activity in the city. The project alone will open employment opportunities for the construction and manufacturing sectors,” Abad said.