Despite delay: ‘CBRT still viable’

CEBU, Philippines — Even though it was conceptualized around a decade ago already as an answer to Cebu City’s traffic woes, the economic benefits of the Cebu Bus Rapid Transit (CBRT) still outweigh the economic costs.

This is the assurance experts gave to the Cebu City Council during an executive session yesterday morning, where it was learned that there is still an ongoing “feasibility study” by “transaction advisors” on the operation and maintenance of the phases of the CBRT project.

This prompted City Councilor Rey Gealon, Cebu City Traffic Management Coordination Committee head, to express his surprise because the CBRT is already being constructed.

"I was shocked and dumbfounded to hear that DOTr has still to conduct another feasibility study at this point in the BRT project with regards to the economic viability, vis-a-vis ridership, which would eventually dictate which route the buses will officially traverse," he said.

"And can you just imagine, even the determination of what buses to be utilized, in terms of specifications, including the terminal and depot for these operating buses, has not been decided on, as it all depends again on the result of this feasibility study that is yet to be conducted," he added.

Engineer Benedicto Guia, national program manager for the BRT and the Department of Transportation (DOTr), however, said feasibility study is meant to determine the operational mode of the CBRT once completed, specifically on the provider of buses.

“Once they submitted to us their feasibility study, we will re-approve it, and we will submit it to NEDA (National Economic Development Authority) because it entails additional investment cost,” he said.

NEDA-7 Regional Director Jennifer Bretaña, on the other hand, said they still believed in CBRT’s economic viability and emphasized that it is one of the reasons that NEDA already made three approvals since 2024.

“Despite the delays, the evaluation result shows that the project is still economically viable,” she said.

This was in response to City Councilor James Cuenco bringing up that the project cost has already skyrocketed to more than P28 billion and the target completion is still on 2027.

The councilor also asked if the required ridership volume and fare rates to be charged were already established as well as the projection for economic viability.

Britaña informed the council that the request of DOTr, as the proponent and the implementing agency on the change of scope, increase of cost, extension of the implementing period, and the validity of loan have already been approved of the Investment Coordination Committee (ICC) last Oct. 5, 2023.

“So, the confirmation of the NEDA board with the CBRT restructuring was done on October 13, 2023,” said Bretaña.

When asked if the World Bank, the project’s loan grantor, also extended its approval on the changes, Britana said they had already been consulted on the matter, which was why the load validity was approved.

During the discussion, Cuenco cited that one of reasons in the delay in the implementation is the long time spent on the changes of scope and design since they have to undergo multiple approval

“As to the time, I believe the ICC and the secretariat have been diligently responding to the request for the restructuring of the DOTr,” said Bretaña.

She clarifies that the approval of NEDA-7 will always correspond to the length of the submission of the DOTr, adding that the evaluation and process for their part does not take most of the time.

In the same executive session, Engr. Norvin Imbong, CBRT project manager, presented to the City Council the final BRT alignment that NEDA already approved.

Per his presentation, the CBRT would consist of 22 stations, 62 bus stops, two trunk terminals, and two feeder terminals. (Out of the four loan packages for the completion of the CBRT, though, ongoing civil works is still for Package 1.)

In terms of project cost, Imbong said that it began at P10.617 billion in 2014 and then P16.307 billion in 2017. But, upon NEDA’s reassessment that already includes road right of way acquisition, the amount is now P28.779 billion in 2023.

As to the project timeline, he said that Package 1 is supposed to be done by the fourth quarter of 2023, but “problems” met during the construction caused the recalibration to the second quarter of 2024, which also corresponds to the first partial operations of CBRT as a whole, according to the original timetable.

Package 1 consists of the stretch from Cebu South Bus Terminal going to the Provincial Capitol Building via Osmeña Blvd.

During the discussion, City Councilor Mary Ann de los Santos raised her concern on the project implementation period, which she said already caused “inconvenience” to the public.  She also asked for assurance that the CBRT project will be implemented based on the latest timeline that DOTr has provided. Imbong assured that they would.

“I suggest that you put the project implementation period billboard on site so that the public would know of exactly your timeline kay this has been postponed many times already,” de los Santos said.

Imbong said they are already starting the procurements for Package 2 and Package 3, which includes the acquisition of affected lots. He also said that the loan validity of the partnered banks is extended to 2027.

He said the loan money of P460 million intended for the right of way acquisition and another P17.5 million for the greening program for the replacement of the trees that were affected is already there.

He also clarified that Cebu City is not spending any amount of the project as the loan is being shouldered by the national government.

“I would just like to emphasize that the City Government is not spending any amount or any interest thereof as the BRT is a national project,” Imbong said.

Guia likewise clarified that despite the delays in the implementation, there is no increasing loan interest imposed, as disbursements only happen when there is already a corresponding payable.

As addendum to what Imbong said, he said the initial memorandum of agreement identified P920 million for the right of way acquisition.

“But since we already have the appraised value, I think an additional more than P1 billion will still be needed for the city roads acquisition,” Guia said. — /RHM (FREEMAN)