PH, World Bank close loan deal for planned Cebu bus rapid transit system

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BRTThe Philippines has signed the loan agreement for the World Bank’s Cebu Bus Rapid Transit (BRT) project.

The BRT plan is set to improve the overall performance of the urban passenger transport system in Cebu City under Project Corridor, with emphasis on the quality and level of service, safety, and environmental efficiency.

The Cebu BRT development project includes segregated BRT bus-ways from Bulacao to Ayala with a link to Cebu’s South Road Property, a feeder service between Ayala and Talamban with signal priority, 33 stations expected to service 330,000 people per day in 2015, about 176 buses, an area stop-light control for the whole city of Cebu, and a central transport-control room.

The World Bank will provide funding of US$116 million from the International Bank for Reconstruction and Development and $25 million from its Clean Technology Fund, while the Department of Transportation and Communications will serve as the implementing agency.

The project is expected to run from 2013 to 2018 and start operating from 2018 to 2030 or beyond. Once launched, it will provide an average of 433,000 individual trips per day, save 25 minutes of travel time, and reduce fares by P7.50.

Finance Secretary Cesar Purisima, who represented the country at the signing, said, “Our improved public finances have enabled us to spend more confidently on public investments supporting our rapid growth. As Cebu City is fast becoming one of our prime urban centers, investing in sound infrastructure lays solid groundwork for a more sustainable growth trajectory.”

The Philippine government and the World Bank chose to develop a BRT system over a rail system because it is 5% to 10% cheaper to construct, has a quick two-year construction period, and offers a higher quality of service despite having the same capacity as rail.

Cebu City is also a prime location for the BRT system, since its local government unit supports the project, and it has no significant bus presence, with a transport system that is largely dominated by public utility jeeps.

Image from Cebu Bus Rapid Transit Facebook acocunt