Rama: BRT project should start now

CEBU, Philippines — Cebu City Vice Mayor Michael Rama said the executive and the legislative department should work together for the immediate implementation of the Bus Rapid Transit (BRT) project and prevent additional waste of public funds.

Rama was reacting to a consolidated annual audit report of the Commission on Audit stating that the delayed implementation of the project is causing the government almost P23 million in commitment fees.

 COA’s audit report on the Department of Transportation, the implementing agency of the P16.7 billion BRT project, stated that an accumulated P22,928,599.74 has been wasted in commitment fees because of the delay in the implementation of the project.

A commitment fee is a fee levied on undisbursed portion of the loan, payable in the currency in which the loan is denominated. This fee can be collected or capitalized based on the loan agreement when the loan becomes effective.

“I’m telling you...many cooks spoil the broth,” Rama told reporters.

Rama, who is now the mayor since Mayor Edgardo Labella was out of the country, said that they need to come in to ensure that the project is implemented the soonest time possible.

He said he will check on the closing date of the loan since any further delay would mean additional burden to the government.

To recall, the Government of the Philippines (GOP) entered into a $198.5 million (P10.6 billion) loan agreement with the World Bank (WB) and Agence Francaise De Development (AFD) for the BRT implementation in 2014. The closing dates of these loans will be in 2021.

"Since expenditures to complete the project after the loan closing date will not be financed under the loan, any further delay in the project component will pose financial burden to the government since the cost to complete the project would have to be sourced from GOP counterpart funds if loan validity extensions will not be granted by the Developing Partners," reads portion of the COA report.

The delay was attributed to the slow procurement process, right-of-way-acquisition. And project viability issues, among others, which resulted in low disbursement or utilization of loan proceeds that might require loan validity extensions.

“What will really serve to the interest of the many is what’s ought to be done because if assuming we are deviating on who’s interest? It’s good that it will go to the SRP, but how long will it take to address the problem of mobility in the south?” Rama asked.

Rama is referring to the current dedicated lane route of the BRT project which will come from South Road Properties to N. Bacalso to Osmeña Boulevard to N. Escario Street to Ayala to I. T. Park.

But, the Technical Support Consultant of BRT already informed the officials of the city government that the BRT System includes a feeder system from Mambaling to Bulacao to Talisay City and from I.T. Park to Banilad-Talamban corridor which will use the PUV modernization program of the national government.

Rama said the original concept was to include Bulacao to Ban-Tal area for the dedicated lane of the BRT system.

“From the point of view of the Local Government Code, it should carry concurrence from the executive and the legislative,” he added.

Rama said any variation of the project should go through the City Council and the city’s executive department. — FPL (FREEMAN)