CEBU City Mayor Nestor Archival’s positivity regarding the continuation of the later phases of the Cebu Bus Rapid Transit (CBRT) is rooted in a dual strategy: domestic political leverage and a clear pathway toward alternative financing. He made his stance clear: “I am very positive that these will still push through because the President is coming, and with that, both the city and provincial governments are committed to making this happen.” This links the project’s fate directly to the national administration’s agenda, suggesting presidential attention will unlock necessary momentum or support, perhaps in securing non-World Bank funding.
The strategy: completion as the key to future funds
• Archival’s optimism is pragmatic because it is contingent on achieving a major milestone. The World Bank’s representative, John Richardson, indicated that support for subsequent phases may be reconsidered if the implementation of Package 1 proceeds smoothly. The mayor has taken this cue and is aggressively pushing for the completion of the initial segment.
• 90 Percent Done: With Package 1 nearly finished, the immediate obstacle is streamlining the final steps of land acquisition.
• Action on Road Right-of-Way (RROW): Archival has directed his acquisition team to fast-track the process for the remaining lots, utilizing the P8 billion allocated by the Department of Transportation (DOTr) for RROW payments.
• The Proof-of-Concept Argument: The mayor believes that once the initial operations commence, showing tangible results will significantly ease the burden of finding new funders, stating, “Once Phase 1 is done, it will be easier for us to find funders for Phase 2.” This suggests a belief that a successful dry run and inauguration will override past delays in the eyes of potential private partners or other international bodies.
Pivoting to new financing models
Even while demanding completion of Package 1, Archival and the DOTr are not waiting passively. They are actively exploring alternative funding mechanisms, primarily a public-private partnership (PPP) arrangement. This move acknowledges the reality of the expired loan arrangement and the World Bank’s guidance to repackage or reassess the approach. For the mayor, this pivot is not a sign of defeat but an operational necessity, showing a willingness to embrace new financial structures to safeguard the transit system’s completion.
Forward momentum toward inauguration
The pressure on Archival’s team is immense, as it must deliver the first working phase before the World Bank loan for Package 1 expires in 2026. The schedule is tight, culminating in the Nov. 5 inauguration led by President Ferdinand Marcos Jr., preceded by a crucial dry run on Wednesday, Oct. 29. Archival frames this entire exercise as a demonstration of commitment: “The dry run is crucial because it will determine how ready we are for full operations. It’s proof that both the DOTr and the Cebu City Government are focused on pushing this project forward.” His optimistic outlook is a public declaration that, despite a decade of setbacks and a funding shift, the local leadership views the project as inevitable.
The next development to watch is the official report following the Nov. 5 inauguration; if the initial operations are seamless, Archival’s aggressive push for PPPs and alternative funding will likely gain significant momentum and credibility.
The decade of stagnation and the commitment fee crisis
The CBRT was first conceived in the 1990s as the mass transport answer to Metro Cebu’s worsening traffic gridlock. Despite securing a $141-million World Bank loan, the rollout was plagued by years of political opposition, bureaucratic bottlenecks and multiple redesigns. Construction under the current design only began in 2022, but the preceding years of inactivity created a major financial drain. The National Government, specifically the DOTr, has been forced to pay commitment fees for over 10 years — charges levied for loan funds sitting idle, unspent, because the project remained stalled. As Archival noted, this continuous burden led the World Bank to decide to “stop the funding” for future phases, though he quickly added, “They will assist us in finding other possible funders.”
The mechanics of the World Bank’s decision
The World Bank’s stance was formalized during a coordination meeting on Thursday, Oct. 23. World Bank’s Richardson, the urban transport specialist, made it clear that while funding for Packages 2 and 3 under the current loan structure is unlikely to be extended, the bank remains engaged. The bank’s recommendation is clear: the government must repackage or reassess its approach before the existing loan for Package 1 expires in 2026. Crucially, Richardson noted that the World Bank may reconsider supporting additional phases if the implementation of Package 1 proceeds smoothly, indicating that demonstrating competence is the key to unlocking renewed confidence. The PPP setup is explicitly mentioned as a viable path forward for the remaining components.
Why this funding shift matters to commuters
The stakes here are tangible: the success or failure of the CBRT determines the future mobility of millions in Metro Cebu. If the remaining packages stall, the huge investment already sunk into Package 1 — the 13-kilometer corridor that will eventually span from South Road Properties (SRP) to the Cebu IT Park — will not deliver its full potential benefit. The goal of a modern, efficient, and sustainable mass transport system that eases daily congestion hangs in the balance. Local leaders are attempting to transform this funding roadblock into a catalyst for attracting private capital, but this transition is complex and carries risks related to profitability and public access. / CAV