The Philippine PPP Center has approved fund support to conduct the feasibility study and transaction advisory services for the operation and management of the Cebu Bus Rapid Transit (BRT) project.

The Department of Transportation (DOTr) tapped the Project Development and Monitoring Facility (PDMF), a revolving fund available to government agencies for pre-investment activities of Public-Private Partnership (PPP) projects. This fund is managed by the PPP Center.

The DOTr envisions that the development and implementation of the Cebu BRT will address traffic congestion in Cebu City. The project was previously approved by the NEDA Board in May 2014, with the BRT infrastructure to be financed through loans from the Agence Francaise de Developpement (AFD), the International Bank of Reconstruction and Development (IBRD), and the Clean Technology Fund (CTF); and the right of way acquisition to be financed by the government.

The PPP component of the project shall involve the procurement of buses, operation and management of bus services, and procurement and installation of all required equipment, associated facilities and IT systems for the BRT’s operation, maintenance, planning and monitoring. It aims to improve mobility in Cebu by providing a safe, environment-friendly and efficient mode of travel.

This is one of the latest projects for which the PDMF fund will be used to conduct feasibility studies. Last January, the PDMF Committee also approved the funding for the conduct of feasibility studies and transaction advisory services for the San Ramon Newport Project, a project spearheaded by the Zamboanga City Special Economic Zone and Freeport (ZamboEcozone) Authority.

In July, we reported that IFC will be the co-advisor with the Development Bank of the Philippines (DBP) to the DOTr for the structuring and tendering of the PPP components.

The Cebu BRT will be the first bus rapid transit project in the Philippines, and will act as a model for the development of future BRT systems across the country.