Cebu City Vice Mayor Tomas Osmeña announced during a September 29, 2026 session that he plans to file a case before the Office of the Ombudsman regarding the proposed acquisition of F. Vestil St. properties for the Cebu Bus Rapid Transit project.
The City Council voted to put right-of-way payments on hold after the City Legal Office advised coordinating with the Department of Transportation regarding the disputed project alignment and necessity of the properties.
The dispute coincides with the September 30, 2026 closing date of the World Bank-supported project, which faced long-running implementation delays, right-of-way issues, and partial loan cancellations.
CEBU City Vice Mayor Tomas Osmeña plans to bring before the Office of the Ombudsman the proposed acquisition of properties along F. Vestil St. in Barangay Mambaling for the Cebu Bus Rapid Transit (CBRT) project, questioning the reported valuation and the use of public funds for the transaction.
“Give me two weeks, and I will file the case and you will be able to see why we should do something about this,” Osmeña told the City Council during its regular session on Tuesday, Sept. 29, 2026.
Osmeña questioned the reported valuation of P80,000 per square meter of the properties, which he estimated could put the total acquisition cost at about P200 million.
He also questioned why the City Government would acquire what he described as commercial property for the relocation of people displaced by the BRT project, arguing that residential properties could instead be considered.
The dispute centers on the proposed acquisition of the F. Vestil properties, the resulting hold on payments and the unresolved CBRT alignment.
F. Vestil properties in the CBRT plan
The properties along F. Vestil St. form part of the right-of-way requirements for the CBRT project.
During an earlier council hearing, DOTr Project Implementation Unit engineer Norvin Imbong told the council that P460 million had been transferred to Cebu City for right-of-way acquisition in the area.
Imbong said 52 lots remained subject to acquisition at the time, with fewer than half already settled or paid.
The properties are part of the right-of-way requirements for the proposed CBRT alignment, which remains disputed between Cebu City and the Department of Transportation (DOTr).
In a resolution, the council rejected the proposed realignment and called for the restoration of the original route from Barangay Bulacao in the south to Barangay Talamban in the north.
According to the City Legal Office (CLO), however, the council’s rejection does not by itself cancel the proposed realignment.
Withholding of payment follows legal review
The CLO issued its opinion after the CBRT Project Management Office (PMO), which is under the Office of the City Administrator, asked how it should proceed with payments for the affected properties.
The legal office said authority over the project’s alignment and implementation rests with the DOTr, subject to applicable laws and funding conditions.
Because the DOTr may still take a position on the alignment, the CLO recommended that the CBRT PMO coordinate with the national agency before continuing with payments.
The office also clarified that the council’s rejection of the realignment does not remove affected property owners’ right to just compensation.
The immediate issue, therefore, is not whether property owners can be compensated. It is whether payments should proceed while the DOTr has yet to clarify whether the properties remain necessary for the project.
Councilor Mikel Rama moved to adopt the CLO recommendation during the Sept. 29 session, resulting in the payment process being put on hold. The action followed a separate proposal by Councilor Winston Pepito to require the CBRT PMO to submit a report on the F. Vestil properties.
Pepito initially sought information on the number of project-affected persons, the status of property acquisition and payments, the source of funds and the CBRT PMO’s communications with the DOTr.
Osmeña objected to having the CBRT management answer the questions, saying the concerns he raised should instead be brought before the Ombudsman. After a brief recess, Pepito withdrew his motion.
Several figures tied to acquisition
Several amounts have been discussed in connection with the F. Vestil properties, but they refer to different aspects of the acquisition and should not automatically be treated as a single project cost.
Osmeña questioned the property valuation, and asked why the City would acquire what he described as commercial property for the relocation of people displaced by the CBRT project, arguing that residential properties could instead be considered.
Osmeña also alleged that the property owner had connections with City Hall and referred to other transactions involving the owner. No documents supporting the allegations were presented during the session.
The P460 million figure mentioned by Imbong refers to funds transferred to Cebu City for right-of-way acquisition in the F. Vestil area. A separate P900-million National Government allocation for property acquisition in the area had also been reported by the City.
CBRT alignment remains disputed
The F. Vestil property issue is part of the broader dispute over the CBRT route.
The City Council rejected the proposed realignment and called for the restoration of the original Bulacao-Talamban route.
According to the CLO, the council’s resolutions reflect the City’s policy position but do not have the force of law to cancel the proposed realignment.
Under the project’s existing arrangements, the DOTr retains authority over the CBRT’s alignment and implementation.
This is why the legal office advised the City to seek clarification from the DOTr before proceeding with the F. Vestil payments.
The dispute came as the World Bank-supported CBRT project reached its Sept. 30, 2026, closing date.
The World Bank’s latest restructuring document said the project faced long-running implementation delays and was expected to achieve only modest progress by the closing date. It said only one section of the BRT corridor had been substantially completed, while other major civil works and project components had not commenced.
The document said about 29 percent, or $40.62 million, of the combined International Bank for Reconstruction and Development and Climate Transformation Fund financing had been disbursed before the partial cancellation of loan proceeds in January 2026. Disbursement of the AFD loan stood at about six percent, or 3 million euros.
Right-of-way acquisition and resettlement delays were among the factors affecting project implementation.
The World Bank financing deadline does not, by itself, settle the outstanding property claims or determine the final CBRT alignment. / CAV