With just over a year left before its major loan expires, the World Bank (WB) has urged the Philippine government to repackage or reassess the implementation of the Cebu Bus Rapid Transit (CBRT) Package 1 first before considering support for the rest of the system, or risk forfeiting the remaining loan funds.
The CBRT Project-once envisioned as a transformative solution to Metro Cebu’s traffic woes-has been saddled with resolving some issues of its Package 1, the only active segment, so far, of the long-delayed project.
The WB recommendation was made during a coordination meeting on October 23, led by World Bank Urban Transport Specialist John Richardson with Cebu City Mayor Nestor Archival, Department of Transportation (DOTr) officials headed by CBRT project manager, Engr. Norvin Imbong, and members of the CBRT City Hall team.
Richardson confirmed that WB is currently not pursuing Packages 2 and 3 due to persistent implementation delays and underutilization of funds for Package 1.
However, he emphasized that if Package 1 is completed successfully, WB remains open to reevaluating support for the rest of the system.
‘The World Bank remains ready to support the project, especially if the government intends to complete the entire CBRT system,’ Richardson said through the City’s PIO.
WB’s project report shows that the CBRT Project was first approved on 26 September 2014, under a $141-million loan agreement between the WB and the Philippine government, with co-financing from the French Development Agency (AFD), and the Clean Technology Fund.
The project was designed to establish a 13.18-kilometer BRT corridor along Cebu City major thoroughfares, offering a modern, efficient, and low-emission public transport alternative. The closing date of the original loan for the project was set in 30 June 2021.
However, due to a series of setbacks-including legal disputes, right-of-way (RROW), change of government leadership, acquisition hurdles, shifting political priorities, and design revisions such as the removal of the Capitol segment—during the administration of then-governor Gwendolyn Garcia-the project failed to meet its targets.
The WB then granted a five-year extension, moving the revised closing date to 30 September 2026.
Now, with the clock ticking, only Package 1-covering the stretch from the Cebu South Bus Terminal to Fuente Osmeña Circle-has moved forward. Packages 2 and 3, which would extend the system to the South Road Properties (SRP) and further north, remain uncertain.
Package 1 is valued at ?990 million, with 91 percent of the amount already disbursed by the DOTr to the contractor. This follows certification from the agency’s consultant confirming the quality of completed works. Yet, progress remains hampered by RROW acquisition issues.
The DOTr has allocated ?8 billion for RROW payments, excluding the Mambaling-to-Bulacao segment under another package.
Of the 55 affected lots in Package 1, there are 31 that only require document completion before full payment can be processed. The DOTr has assured that funds will be downloaded to the Cebu City Government once the necessary documents from property owners are finalized.
Mayor Archival, who has taken a proactive stance on the project, expressed frustration over the delays and emphasized the need to act swiftly. ‘We need to push this because—just imagine-a lot of money is there and we’re not using it,’ he said.
The mayor then directed the City Hall CBRT team to fast-track the processing of lot documentation and submit the requirements to the Department of Public Works and Highways (DPWH), which will in turn endorse them to the Office of the Solicitor General (OSG) for payment facilitation.
The WB has also suggested that the government consider implementing the remaining CBRT components through a Public-Private Partnership (PPP) model if the current approach proves unworkable.
For now, the fate of Cebu’s first mass transit system hinges on the successful completion of Package 1.
With the 2026 deadline looming, stakeholders face mounting pressure to deliver-or risk losing international support for a project that has already spanned over a decade in the making now.