Muddling government project planning

In many instances, the government gets muddled up in numerous planning exercises, and thus loses objectivity. Oftentimes, politics adds a monkey wrench that nullifies all past discussions; hence, resulting in the practice of bringing projects back to the drawing board for reviews and more reviews.

Take the case of the proposed bus rapid transits (BRT) for two of the country’s cities with horrendous traffic problems: Metro Manila and Cebu.

A lot has been said about the feasibility of introducing the BRT system, as gleaned by its successful operations in more than 170 cities in the world. In the Philippines, however, putting in place a BRT system has continuously stumped our government planners – and even the financing institutions or countries involved in sponsoring financing.

Let us start first with the proposed Cebu BRT, which has been on the table for decades now.

Planning of the BRT for Metro Cebu started in earnest in 2008, although the idea had been first vouched in 1990s. World Bank consultants submitted a completed feasibility study in 2012. The total project cost was P9 billion.

Financing was to come from the World Bank’s Clean Technology Fund, the International Bank of Reconstruction and Development (IBRD), and the French Development Agency (AFD). The right of way acquisition was to be financed by the Philippine government.

The project was included in the top 16 PPP projects of the Aquino administration after securing approval of the NEDA Board in 2014.

The construction of the Cebu BRT was to be implemented by the Department of Transportation (DOTr) in coordination with the Cebu City government.

‘Integrity’ concerns

Just before the supposed project start in the last quarter of 2017, the DOTr announced the need to defer the planned groundbreaking after NEDA found the proposal to build a light rapid transit-subway system for Metro Cebu conceptually better than the BRT considering Cebu’s narrow city roads.

The DOTr called for a review to address concerns raised, “so as not to cast any doubt on the integrity of the project.” This meant that the BRT project would have to sit and wait out for NEDA to complete its “rigorous and long processes of project proposal and approval.”

The conceptualized light rapid transit-subway system was to include a light rail line running from the southern outskirts of the city, transitioning into a subway line through the Cebu City center, then back to being a light rail line going north of the city.

In the ensuing confusion created among frustrated Cebu constituents, President Duterte stepped in last month with a statement during the Sinulog festivities that he favored a modern train system and elevated highways for the old city, and that he would secure Chinese funding for the project.

It’s not clear yet if NEDA will halt deliberations on the light rapid transit-subway system that would have replaced the BRT. For sure, thought, Cebuanos are likely more confused now.

Is BRT for Metro Manila or not?

In the original Build Build Build (BBB) program bared in 2017, three BRT projects were listed for Metro Manila: the BRT Line 1 along Quezon Avenue; the BRT Line 2 on EDSA; and the BRT Phase 3 covering BGC to NAIA.

In last year’s revised BBB list, Line 2 and Line 3 were no longer included. The seeming odd detail, though, is that World Bank and AFD would finance Line 1 through a similar arrangement that was made for the proposed Cebu BRT system.

The BRT Line 1 for Metro Manila is scheduled for completion this year, based on the released list of the new BBB projects by Albay Rep. Joey Salceda. Yet, Transportation Secretary Arthur Tugade has been quoted many times as not being in favor of the BRT system for the congested roads of Metro Manila or Cebu.

Instead, he has said inferred that a BRT would work best in the New Clark City. Yes, your guess is as good as mine that the World Bank and AFD would be tapped to finance the construction of a BRT system there. The saga continues.

Skyway Stage 3 delay

People monitoring the construction progress of San Miguel Corp.’s Skyway Stage 3 project will have to stretch their patience a bit more after the huge industrial fire that burned down about 300 meters of the concrete structure.

SMC president and COO Ramon Ang assured the public that the rebuilding of the gutted part, which was first estimated to take eight months, could be completed in three instead, pushing the opening of the 18.3-kilometer elevated toll road to July instead of April 1.

If SMC will truly be able to make Skyway Stage 3 passable to motorists by July, the speed by which it responds to the accident is a fine example of public-private partnership (PPP) projects at work in the country. The public can likewise be assured that the higher project cost, originally priced at P37.4 billion before the fire, will not be a reason for hiking toll fees.

Argument for more PPPs

The best thing going for PPPs is the speed by which project studies are completed at no cost to government, backed by varied options for plans that cover financing sources and viability. In government-led projects, these factors sometimes take more than double the time that the private sector spends.

The ability of the private sector to mobilize resources is something that government admittedly cannot match, and is one of best reasons why PPPs especially for flagship infrastructure projects deserves more state support.

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