EDSA busway seen privatized by 2025

MANILA, Philippines — The Department of Transportation (DOTr) will remain the operator of the EDSA busway as its planned privatization could take at least two more years to complete.

Transportation Undersecretary Timothy John Batan told reporters the DOTr is eyeing to turn over the EDSA busway to the private sector by 2025, at the earliest.

He said the privatization of the bus lane in EDSA may take around two years given that the feasibility study for it was just awarded to consultancy giant Deloitte in August.

Batan said the DOTr expects Deloitte to submit the results of its study within the first semester of 2024. Afterward, the agency has to review the merits of privatizing the EDSA busway based on the assessment by Deloitte.

Once the DOTr approves the feasibility study, it will craft a proposal to the National Economic and Development Authority (NEDA). Based on previous submissions, Batan said the NEDA Board issues a decision on a project after about six months.

“Remember that after the feasibility study, we have to secure NEDA approval. That takes around three to six months. Most likely, 2025 would be the tender out of the EDSA busway,” Batan said.

For the meantime, the DOTr will shoulder the operations and maintenance of the EDSA busway pending its turnover to the private sector.

With this, Batan gave his assurance to commuters that the EDSA busway will be sustained even as the government has yet to find a concessionaire for the infrastructure.

In August, the DOTr awarded to Deloitte the P50-million contract for a feasibility study for the best possible structure in privatizing the EDSA busway. The funding came from the Project Development and Monitoring Fund of the Public-Private Partnership Center.

The study will identify how the government can privatize the operations and maintenance of an infrastructure that has two profitable but complex segments. Earlier, Batan noted that the DOTr may divide the EDSA busway into two sections, namely, the development of the stations and the operation of buses.

Although the two are connected, they may be issued in separate contracts, as both require certain expertise.

Based on data from the DOTr, the government spent at least P551 million to build, enhance and manage the EDSA busway between 2020 and 2022.