THE National Government has requested to cancel $84.9 million in unused loans for the Cebu Bus Rapid Transit (CBRT) project. This decision comes after a decade of delays, leaving the future of the massive transport system in question.
An "unsatisfactory" report card
The World Bank, which provided the funding, recently labeled the project’s progress as "unsatisfactory." Even though the project was approved way back in 2014, only 29 percent of the total money has actually been used.
Out of the original $141 million budget, most major parts of the project are still not finished. So far, the only completed section is a short 2.38-kilometer busway and a few minor urban improvements. Major construction for "Packages 2 and 3" has not even started yet.
Why was the money canceled?
The Department of Finance asked to cancel the funds to avoid paying "commitment fees" — essentially penalties for holding onto money that isn't being used. The government realized it could not finish the work before the project’s official deadline in September 2026.
Several big problems caused these delays:
• Missing Systems: Important traffic management and computer systems are not ready.
• Staffing Gaps: The project lacked enough specialists to handle finances and hiring.
• Property Issues: Delays in moving affected businesses and homes held up construction.
• Hiring Delays: Slow processes for picking contractors meant work couldn't move forward.
Looking for new ways to pay
With $84.9 million gone, Cebu City Mayor Nestor Archival says the government may now look to a Public-Private Partnership (PPP). This means inviting private companies to help fund and finish the project.
While Archival said he was not aware of all the details regarding the cancellation, he remains optimistic. "If it gets canceled, then probably the lender saw that it cannot be implemented now. What we will do is find a way to bring back funding," he said.
The road ahead
The CBRT was designed to make traveling in Cebu City safer, faster and cleaner. Although the World Bank is withdrawing a large portion of its direct funding, it may still help connect the government with private partners.
The loan officially closes on Sept. 30, 2026. Because the remaining work cannot be finished by then, the project must now be restructured. Archival insists the project will continue, stating, "Even if funding is reduced, we will find ways." / CAV