Transport dep’t urged to abandon stalled foreign-funded projects to save on fees
THE Department of Transportation (DoTr) must make prompt decisions on abandoning stalled foreign-funded projects to save on commitment fees, a senator said.
“We have a lot of foreign assisted projects, and I think it is high time to decide whether we are going to continue or stop these projects for good. Because there are stalled projects that were funded pending review, and we continue to pay commitment fees. It is time to cut our losses,” Senator Maria Lourdes Nancy S. Binay told the Committee on Finance on Tuesday.
The Senate flagged the continued payments on projects that have been delayed or remain under review, like the Cebu Bus Rapid Transit (BRT) line.
The DoTr is seeking a budget of P180.89 billion for 2025 to fund flagship rail, aviation, maritime, and road projects.
“The Cebu Bus Rapid Transit phase one is ongoing, we just encountered problems on one station because of the complaint of the provincial government,” Transportation Secretary Jaime J. Bautista said.
Mr. Bautista said the Cebu BRT phase 1 will be operational within the year as construction is nearly complete.
The Cebu BRT forms part of the DoTr’s flagship initiatives outlined in the National Expenditure Program for 2025.
The DoTr has said that the timeline for the launch of the Cebu BRT’s full operations has been pushed back to 2027.
The Cebu BRT is a 13.8-kilometer line with 17 stations, one terminal and one depot.
Once completed, the Cebu BRT system is expected to serve up to 160,000 passengers a day.
“There is another project, the EDSA greenways, it is the same. The payment of commitment fees continues while we are still reviewing the projects being implemented. It is a loss,” she said.
Mr. Bautista said the EDSA Greenways project is now undergoing review by the National Economic and Development Authority, which must sign off on the expected change in cost.
The P8.79-billion EDSA Greenways involves the construction of elevated walkways at four mass transit stations — Balintawak station of Light Rail Transit (LRT) Line 1, Cubao station of Metro Rail Transit Line 3 (MRT-3), Guadalupe station of MRT-3, and Taft station of MRT-3 and LRT-1.
The project was initially set for completion in 2022, and been pushed back to November. Further delays are expected.
“For EDSA Greenways, there are issues on the right of way, specifically the relocation of utilities. Because of that there will be an increase in cost,” Mr. Bautista said. — Ashley Erika O. Jose