DOTR finally awards contract: Chinese firm to undertake BRT project

CEBU, Philippines — The long-delayed Cebu Bus Rapid Transit (BRT) project is finally moving an inch forward after the Department of Transportation (DOTr) formally awarded the contract to a Chinese construction firm yesterday.

Mayor Michael Rama witnessed the awarding of the contract to Hunan Road and Bridge Construction Company Ltd. at the Citidines in Cebu City where a pre-construction meeting was also held.

“DOTr awarded the contract for the construction of first alignment of Bus Rapid Transit (BRT) to Hunan Road and Bridge Construction Company Ltd. - a China-based Company,” said Councilor Jerry Guardo.

Aside from Rama and DOTr officials, also present during the awarding of contract and pre-construction meeting were representatives from Cebu BRT office, South Road Properties (SRP) head Bo Varquez, and the management team of the winning contractor.

Officials of the Department of Public Works and Highways (DPWH), City Environment and Natural Resources Office, Cebu City Transportation Office CCTO), City Planning, Office of the Building Official, and other stakeholders were also present.

Although the project has been awarded already the winning contractor needs to secure all the necessary permits before it could start the actual construction.

“After the awarding of contract by DOTr, a pre-construction meeting was held plus some coordination meeting in relation sa permit nila kay the contractor will have to process…kay of course, even if this is a government project, they are still required to pay mga local taxes/fees,” Guardo, chairman of the committee on infrastructure of the City Council told The Freeman.

The permits needed to be processed include working permits, building permits, excavation and hauling permits, and underground installation permit, among others. The contractor has one month to comply all the required documents and is expected to start the actual construction by January next year.

 “Timeline nila sa pag process is this month of December then and construction is sometime month of January of next year,” said Guardo.

Guardo said the mayor has given the go signal to proceed with the construction despite the expected traffic congestion by January because of the Sinulog activities.

The mayor’s instruction, however, was to insure that the project will not hamper the flow of traffic during the festivities.

“Of course, they still have to coordinate with the city’s traffic group for the submission of the traffic plans…the Mayor is okay man siya ani na month sa January as there (are) also other workable areas nga dili ra makabalda sa traffic, pwede ra sad na siya,” said Guardo.

The first phase of the Cebu BRT project is a one-year contract amounting to close to P1 billion funded by the World Bank. The contract has two major components--the construction of the BRT infrastructure, which includes trunklines, sidewalk improvements, stations, and other appurtenances, from the Cebu Capitol to the existing South Bus Terminal and the urban realm enhancement consisting of a link to the port along Osmeña Boulevard.

The project was originally targeted to be implemented in 2016 but has been delayed several times due to multiple factors such as changes in design, routes, and road right-of-way acquisition. The delays have cost the government millions of pesos in penalties.

As of December 31, 2019, the Commission on Audit (COA) reported that the government has already incurred P29.48 million in cumulative commitment fees.

A commitment fee is a fee levied on an undisbursed portion of the loan, payable in the currency in which the loan is denominated.

The Cebu BRT project is funded through loans from the World Bank and the French government, through the Agence Francaise de Developpement (AFD).- FPL (FREEMAN)