CEBU City’s first mass transport system is facing a major setback after the National Government partially canceled international loans for the project. The decision comes after years of delays, leaving local leaders in a race against time to find new ways to fund the city's bus system.
With a looming September deadline and a shrinking budget, the future of how Cebuanos get around the city is now at a turning point.
Why the loans were canceled
The National Government decided to cancel unspent money from the World Bank and the Agence Française de Développement. This happened because the project has not used the funds fast enough.
Originally, the World Bank provided a $141 million loan, while the French agency pledged €50.89 million. However, because progress has been slow, the government asked to cancel over $84 million of the unspent international funds. This leaves only about $56 million to keep the project moving forward.
Impact on daily commuters
This financial change affects thousands of people who travel every day between the north and south of the city. Residents in busy areas like Bulacao and Talamban need a fast way to get to the city center. Without this transit system, they remain stuck using an overcrowded and aging transportation network.
Councilor Winston Pepito explained that while canceling the loans stops the City from paying unnecessary interest fees, it also takes away the cash that was ready to be used. Now, the City must look for other ways to pay for the dedicated bus lanes so the project doesn't stop entirely.
A history of delays
The project was first dreamed up over a decade ago to fix Cebu’s heavy traffic. However, it has been hit by constant problems, including:
• Arguments over who owns the land (right-of-way).
• Changes to the design and route.
• Issues with contractors and changing political priorities.
What started as a 23-kilometer route was later expanded to 35 kilometers to reach areas like Talisay. Despite these big plans, only a tiny 2.38-kilometer section between the Cebu South Bus Terminal and the Capitol has been finished. This small section only began partial operations in March 2026.
The search for new funding
The Department of Transportation and city leaders are now looking at "public-private partnerships." This means private companies might help pay for the project, which could change how the system is managed and how much commuters pay for fares.
There are also political disagreements about where the buses should go. Vice Mayor Tomas Osmeña opposes moving the route through the South Road Properties, fearing it helps businesses more than regular neighborhoods. Meanwhile, Mayor Nestor Archival argues that building in easier areas first was the only way to get the project started after years of standing still.
What happens next?
All eyes are now on Sept. 30, which is the deadline to use the remaining World Bank funds. As the City searches for new investors and government money to fill the gap, the exact cost to finish the first phase remains unknown. For now, the people of Cebu continue to wait for a clear timeline on when their full mass transit system will finally be ready. / CAV