World Bank approves partial cancelation of BRT loans; trunk extensions, SRP depot to be scrapped

Local

WITH the September 30 deadline looming, the World Bank has approved the government’s request to cancel portions of the loans intended for the Cebu Bus Rapid Transit (BRT).

Instead, the financial institution proposed a comprehensive restructuring of the multi-billion peso project that would also result in major changes such as scrapping extension routes and depots.

Because many major activities had failed to progress, the World Bank agreed on the request to cancel roughly $85 million, representing 37 percent of the project's original total funding, which is at $228.5 million.

The canceled loans include $59.9 million from the International Bank for Reconstruction and Development and US$25 million from the Clean Technology Fund.

With funds drastically reduced, project proponents would only need to focus on completing civil works for Package 1, the World Bank reported in a disclosure published on May 14, 2026.

Meanwhile, construction for Packages 2 and 3, which covers trunk extensions, support facilities such as a dedicated maintenance and storage depot at the South Road Properties (SRP), IT Park, Talamban and Talisay, will be scrapped.

The 18-kilometer mixed-traffic feeder lines, part of Package 3, will no longer be included as well.

Package 1 pertains to the 2.38-kilometer route between Cebu South Bus Terminal and the Cebu Provincial Capitol.

Despite major changes of the project, the World Bank document mentioned that the bus service itself, running between IT park and SRP, will continue to run its route.

Following the loan cancellation, other components related to the BRT that will no longer be constructed included the automated traffic system and reducing the mobility studies from three to one.

The World Bank, in turn, proposed passenger service staff and traffic enforcement officers be manually deployed along the corridor to manage traffic and station safety.

First introduced in the late 1990s, the Cebu BRT was meant to serve as a mode of mass transportation for Cebu City. But throughout the years, the project has multiple delays with reasons ranging from design changes to being a political casualty.(RBE)