CBRT, P17B international container port: Two Cebu infrastructure projects signed

CEBU, Philippines — It is a “full speed ahead” for the New Cebu International Container Port (NCICP) and the Cebu Bus Rapid Transit (CBRT) transportation system, following the signing of contracts for these projects in Malacañan Palace yesterday.

THE NCICP in Consolacion, Cebu has been put on hold for around two decades, while the three-package CBRT is nearing completion for Package 1.

“Today's event is a huge leap forward. Propelled by vision, innovation and collaboration, starting with the signing of the civil works Contract package of the NCICP,” said Transportation Secretary Jaime Bautista.

He said the project was first approved by the National Economic Development Authority (NEDA) Board in 2016 but encountered several issues along the way and compounded by the “combined effects of the COVID-19 pandemic, the Russia-Ukraine protracted war, and global tightening of monetary policy” that “resulted in significant surge in total project cost and further extension of implementation schedule”.

“Eight years after its approval, the project's restructuring finally secured investment nod in June 2024, triggering the recommencement of procurement activities towards the imminent award of the civil works contract package ultimately leading to this activity today (yesterday),” Bautista said.

Funded by the Export-Import Bank of Korea (KEXIM), the PhP16.9-billion NCICP aims to alleviate congestion at the existing Cebu Base Port in Cebu City, enhance cargo handling, and lower logistics costs.

The project includes the construction of a 1,365-meter-long access road and a 300-meter-long offshore bridge, with a target completion of November 2027.

To be undertaken under a Public-Private Partnership (PPP), the NCICP will be DOTr’s first ever PPP project in the maritime sector and will be the DOTr’s first hybrid PPP project under the current administration.

With this scheme, Bautista said, “cheap concessional financing will be used for civil works, while agile private sector financing will be used for operations and maintenance”.

President Ferdinand R. Marcos Jr. who witnessed the signing of the various government infrastructure project agreements, said he looks forward to more comfortable travel and better opportunities for Filipinos.

The P17-billion NCICP is seen as the long-term solution to congestion at the existing Cebu Base Port.

“Once completed, this will not only make goods more affordable but will also generate thousands of jobs for our people. Apart from this, it will also create more opportunities for everyone as it will provide increased space for port activities,” he said on the NCICP.

“Expression of interest”

Meanwhile, an “Expression of Interest” for the CBRT was also signed yesterday with the International Finance Corporation (IFC) of the World Bank Group, to assist in identifying a qualified operator for the system.

The 35-kilometer CBRT includes a 17-kilometer trunk service, 22 stations, and the capacity to accommodate up to 164,000 passengers daily, once fully operational.

“The Cebu BRT PPP will help establish a high capacity, fast and efficient bus system and will soon bring much needed relief to Filipino commuters, create more job opportunities and drive greater economic development,” Bautista said.

“We are grateful to the International Finance Corporation for Transaction Advisory Services Agreement’s (TASA) continuing support…provided to the DOTr, leading to this historic event,” he added.

The CBRT, with a total project cost of P28.78-billion, is a modern bus network project that would connect key parts of Cebu City.

Aside from the NCICP and the CBRT, two other projects in the Visayas region and one in Mindanao were also sealed yesterday.

A PPP agreement, which was approved by the NEDA board on October 13, 2023, was also signed with the Aboitiz InfraCapital (AIC) for the modernization of the Bohol-Panglao International Airport.

The agreement will involve a new passenger terminal and upgraded facilities, increasing capacity to 3.9 million passengers annually.

“The Bohol International Airport (BPIA) has served as gateway to Tagbilaran City and the rest of mainland Bohol… As the country's first eco-airport, it features an environmentally sustainable structure and green technology built to the highest international standards…We expect airports transformation after Aboitiz InfraCapital takes over the airport's operations and maintenance,” Bautista said.

“Like other airport development projects. Bohol purport’s transformation is seen to promote regional growth, generate jobs and livelihood, and create investment opportunities,” he said.

The BPIA expansion, amounting to P4.53-billion, will be implemented in two phases.

It is expected to increase the airport’s capacity from two million to 2.5 million passengers annually by 2026.

By 2030, it is expected to handle almost 3.9 million passengers.

The project is expected to generate P15 million in annual revenue during its first five years, increasing to P200 million per year by the end of the concession period.

“This means we can provide seamless travel to a lot of tourists—which translates to more jobs for Boholanos, especially in the hotel and restaurant industries,” President Marcos said of the project.

The BPIA privatization project followed closely last month's signing of the concession agreement for the Laguindingan International Airport PPP projects to AIC.

Plans for the new Dumaguete City and New Siargao airports are also underway, with the World Bank International Finance Corporation providing support for documentary and bidding processes.

“The new Dumaguete, and Siargao airport PPP projects will be the DOTr’s first bundle PPP project, where more viable projects will be leveraged to mobilize private sector investments and expertise into less viable assets,” Bautista said.

“These initiatives follow the successful transfer of operations and management of the Ninoy Aquino International Airport (NAIA) and Laguindingan Airport to New NAIA Infrastructure Corporation and Aboitiz InfraCapital, respectively,” DOTr said.

“My fellow Filipinos, the future will not simply come to us—we must be the ones to build it. And this is how we will move forward. So, [let’s] together build a better Philippines we can proudly bequeath to our children,” President Marcos said.

He also said that “these projects are not just structures, they are representative of every Filipino’s dream of more comfortable travel, better opportunities, and a clearer path towards their goals and dreams.” — /RHM (FREEMAN)