Cebu BRT's lenders assured of fund-A A +A
Thursday, August 28, 2014
THE Department of Budget and Management (DBM) has assured that the National Government will provide funds to pay any loan that the Department of Transportation and Communications will secure to implement the P10.6-billion Bus Rapid Transit (BRT) project in Cebu City.
The assurance is contained in the Forward Obligational Authority (FOA) issued by the DBM to the Department of Transportation and Communication (DOTC), which will implement the project.
The DBM posted on its website three possible fund sources for the BRT system, namely: international finance institutions Agence Francaise de Development, International Bank for Reconstruction and Development and the Clean Technology Fund.
The FOA will allow the government to process the loans for the project. “The FOA will also help us avoid unnecessary commitment fees along the way,” Budget Secretary Florencio Abad said in the DBM post.
The FOA only covers P9.48 billion, however. The DBM said the P1.41 billion will come from private investors or investor who will purchase, operate and maintain the buses.
Abad stressed the importance of the BRT. “We want to enhance urban mobility in Cebu by establishing a high-quality, viable and sustainable bus rapid transit system. Once completed, the project will give Cebu's commuters a fast, comfortable and cost-effective mode of transportation,” he said.
“The main idea here is to emulate a modern rail-based transit system at a much lower cost,” he said.
(Infographics by: Mariz Puyo)
The National Economic and Development Authority (Neda) Board, chaired by President Benigno Aquino III, approved the BRT project, which is targeted for completion in 2018.
In a related development, Department of Public Works and Highways (DPWH) Central Visayas Director Ador Canlas clarified that his office did not choose the route of the BRT.
He said the DOTC, as the agency tasked to lead the implementation of the project, identified the roads from Bulacao to Talamban that will be served by the BRT.
The BRT system will be established in Natalio Bacalso Ave., Osmeña Blvd., Escario St. and Gorordo Ave.
Canlas reacted to the suggestion of the Movement for a Livable Cebu that the BRT be established on P. Del Rosario and Imus Sts. and M.J. Cuenco Ave. as there fewer trees to be affected there. (Sun.Star Cebu)
Published in the Sun.Star Cebu newspaper on August 28, 2014.