Archival: BRT project to continue despite funding cancellation

Local

EVEN as a major portion of its funding faces cancellation, Cebu’s long-delayed Bus Rapid Transit (BRT) project is not stopping—at least, not if the city has its way.

Mayor Nestor Archival on Wednesday, April 1, said the Cebu Bus Rapid Transit (CBRT) will continue moving forward, with officials now looking at a public-private partnership (PPP) model to fill the funding gap left by the possible withdrawal of $84.9 million in loans.

“Ang giingon sa DOTr, ang atoa himuon PPP lang—that’s the direction,” Archival said in an interview, indicating a shift in strategy as national agencies reassess financing for the project.

The mayor, however, acknowledged he has yet to receive full details on the reported cancellation.

“I really don’t know about that… basta ako nahibaw-an is supposed to be a soft loan gikan sa World Bank na gikuha na,” he said, referring to earlier loan withdrawals tied to the project.

The World Bank earlier confirmed that the Philippine government requested the cancellation of $84.9 million in unspent loans for the CBRT, more than half of the original $141 million financing package.

The move, coursed through the Department of Finance, is intended to reduce commitment fees on funds that may no longer be used before the September 30 loan closing date.

The development highlights a recurring issue for the project: slow fund utilization.

To date, only about 29 percent of the World Bank loan has been disbursed, while parallel financing from a French development agency has also seen minimal use.

With public financing shrinking, Archival said the government is now considering tapping private investors to sustain the project.

“Ang possibility, mangita ta ug mga takers sa PPP—that’s what we will look into,” he said.

He added that returning to loan financing remains an option in the future, but for now, the focus is on keeping the project alive.

“If mahimo na, mangita ta ug paagi na ibalik ang loan—that would be possible,” he said.

Despite funding uncertainties, initial components of the BRT are already taking shape on Cebu’s roads.

Archival pointed to the early rollout of dedicated bus lanes as a sign that progress, while slow, is tangible.

“Gahapon nalipay ko sa akong pagtan-aw na orderly man kaayo ang paggamit sa lane, BRT lane,” he said.

The first completed segment—a 2.38-kilometer stretch from the Cebu South Bus Terminal to the Capitol—now serves as the backbone of initial operations.

Since mid-March, portions of N. Bacalso Avenue and Osmeña Boulevard have been reconfigured to prioritize buses, part of a phased rollout designed to test traffic flow and commuter response.

The CBRT has long been positioned as Cebu’s first modern mass transport system, but years of delays, design changes, and funding constraints have slowed its progress.

International lenders have repeatedly flagged implementation gaps, prompting calls for restructuring and more realistic timelines.

Now, with financing reduced and timelines tightening, the project faces another turning point.(TGP)