The Market Monitor Minding the Nation's Business
By Jinkuy Jorgio
Senators expressed concerns about the government’s continued payments to transportation contractors for projects that are still under review.
During the budget hearing of the Department of Transportation at the Senate, Sen. Nancy Binay pointed to the Cebu Bus Rapid Transit System as one problematic project.
‘The government should decide if it (Cebu Bus Rapid Transit System) will still be continued,” Binay said.
According to the National Economic and Development Authority (NEDA), the said project was approved in 2014 with the World Bank as its lead financer. However, despite beginning full-swing, construction in 2023, the project hit a snag due to concerns over heritage protection.
“It’s high time to cut our losses and decide once and for all if we will continue this project because the bleeding of this project continues,” Binay said in Filipino.
The project, envisioned to improve the capacity and quality of Cebu City transport, has been under implementation for nearly 10 years since it was approved in 2014 during which it has faced several delays and lengthened timetable. Cebu Governor Gwen Garcia in February this year, issued a memorandum to stop construction in heritage buffer zones of the provincial capitol and the Fuente Osmena Circle
At the same time, Senate Minority Leader Koko Pimentel also raised concerns over the stalled EDS Greenways project which is funded by the Asian Development Bank.
Transport Secretary Jaime Bautista said that the project will again undergo NEDA review due to projected higher costs for the period.
The five-kilometer Greenways project, meant to make the major thoroughfare more pedestrian-friendly with elevated walkways, was originally slated for completion in 2022.
Binay pointed out that even if a project is under review, the loan and commitment fees will persist.
Pimentel also questioned why the government is spending on projects that are still under review after Bautista confirmed that partial payments had already been made for these projects.
When asked about the total amount paid so far, the DOTr was unable to provide an answer.
Pimentel then stressed the government’s obligation to comply with loan agreement terms as honorable debtors, saying “What happens is, we do not have the walkway but we keep on paying interest and sooner or later, even the principal”.
A significant portion of the DOTr’s 2024 budget was allocated to unprogrammed funds. Congress reduced the DOTr’s budget from an initial proposal of P213.735 billion to P41.21 billion for 2025.
Meanwhile, a Japanese private firm launched its smart autonomous bus service in New Clark City to help in the mobility of workers, tourists and visitors, investors, and other guests around the newly developed area
Zenmov in partnership with MC Metro Transport Operation marked the official opening of the Philippines’ first publicly accessible, self-driving bus utilizing a transportation cloud system called Smart Mobility Operation Cloud (SMOC).
Zenmov held a ribbon-cutting ceremony last week and a demonstration of an energy-efficient and smart public transportation system that will run within New Clark City, Clark Freeport Zone, and Clark International Airport. Representatives from the New Energy and Industrial Technology Development Organization (NEDO), MC Metro Transport Operation, as well as Bases Conversion and Development Authority (BCDA) graced the event.
“By integrating their smart autonomous vehicle technology, we ensure a more sustainable and scalable transport solution here in Clark. This will positively transform the everyday lives of those living and working within Clark — making it easier to get around, reducing traffic congestion, and promoting a green and low-carbon environment,” said BCDA Executive Vice President and Chief Operating Officer Atty. Gisela Z. Kalalo.