DOTr starts privatization process for EDSA Busway

MANILA, Philippines — The Department of Transportation (DOTr) has started the privatization process for the EDSA Busway as it seeks a consultant for the conduct of the turnover’s feasibility study.

In an interview with reporters, Transportation Undersecretary Timothy John Batan said the DOTr has turned to the Private-Public Partnership (PPP) Center for help in initiating the procedure for the privatization of the EDSA Busway.

As part of the process, Batan said the DOTr asked the PPP Center to look for a consultant who would deliver the feasibility study on the transfer of the EDSA Busway to a private operator.

“The PPP Center is assisting us in getting the funding, and we already got funding from the PPP Center. At present, the selection for a consultant who would do the feasibility study is ongoing,” Batan said.

Based on the timeline, the PPP Center should hire a consultant on or before March as it would take more than six months to craft the feasibility study. Further, Batan said the DOTr also has to decide what segments of the EDSA Busway would be turned over to the private sector.

In particular, the DOTr has to assess whether the bus operations and station development of the infrastructure would be packaged as one.

Last year Infrawatch PH convenor Terry Ridon told The STAR that the DOTr may find it difficult to find an investor who can do both tasks, especially as they require particular expertise.

“Part of the study for privatization is how we do the PPP. Do we pick one operator for the entire thing? Do we separate the operations of buses and development of stations?” Batan said.

“There are different ways how to structure the EDSA Busway once it is turned over to the private sector. Part of the study is to give recommendations on the best structuring for that project,” the transport official added.

Transportation Secretary Jaime Bautista wants to complete the privatization of the P551-million EDSA Busway within the year, as the government lacks the budget to maintain and upgrade the infrastructure. As such, Bautista said there is little to no chance that the free ride program at the busway would be rolled out in 2023.

Based on data, the Libreng Sakay at EDSA buses benefited at least 389,579 commuters daily, peaking to 400,000 during the holiday period.

Data obtained by the STAR showed that the DOTr spent a total of P551 million to build, sustain and maintain the EDSA Busway from 2020 to 2022.