MANILA – The Department of Transportation and Communications (DOTC) has secured a commitment from the Department of Budget and Management (DBM) that funds would be set aside until the completion of the Cebu Bus Rapid Transit.
In a statement, DBM said it has issued a forward obligational authority amounting to P9.48 billion for the project.
The forward obligational authority is a commitment by the DBM that it would allocate funds each year until such time that the project is completed. The fund commitment includes both the proceeds of any loan incurred as well as the government’s counterpart funding.
Construction for the Cebu Bus Rapid Transit begins this year and ends in 2018. The project will cost P10.62 billion, of which P9.48 billion would be covered by the forward obligational authority.
The remaining P1.14 billion will be infused by the private partner since the project is one of the public-private partnership (PPP) ventures of the Aquino administration.
The Cebu Bus Rapid Transit will be funded by loans from Agence Francaise de Development, the International Bank for Reconstruction and Development, and the Clean Technology Fund.
“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,” Budget Secretary Florencio Abad said.
“The main idea here really is to emulate a modern rail-based transit system at a much lower cost,” he added. By Rain Castro
