THE WORLD BANK approved on Friday nearly half-a-billion dollars in financial package to fund the Philippines' first bus rapid transit (BRT) system and augment the government's budget for reforms, including a conditional cash assistance program for mothers to send their children to school.
THE WORLD BANK approved on Friday nearly half-a-billion dollars in financial package to fund the Philippines' first bus rapid transit (BRT) system and augment the government's budget for reforms, including a conditional cash assistance program for mothers to send their children to school.
In a statement released to the media on Saturday, the Washington-based lender said it is lending $141 million for the construction of a 23-kilometer BRT system in Cebu City.
A separate statement said the World Bank's Board of Executive Directors approved a $300 million new development policy loan (DPL) to support programs outlined under the Aquino administration's six-year Philippine Development Plan (PDP).
Combined, the fresh loans amount to $441 million or an estimated P19.7 billion (based on Friday's exchange rate of P44.72 to the dollar).
With the BRT system, the Philippines joins the likes of Los Angeles, Las Vegas, Ottawa, and Sao Paolo that built this mode of transport as wealth spills over to other urban centers from the main capital, bringing with it traffic and pollution headaches.
Cebu has seen rapid urbanization in recent years, with the Philippines' property conglomerates racing to build malls, towering condominiums and office buildings while the government works out a deal to upgrade the city's main airport.
The Cebu BRT system is expected to ferry 330,000 passengers daily. A BRT system has dedicated lanes and is cheaper to build compared to their light rail transit counterparts.
The project, the multilateral lender said, will also install a “state-of-the-art computerized traffic management system in the entire city” to integrate the BRTs with other modes of transport.
“When successfully implemented, Cebu BRT will provide an on-the-ground demonstration of how this system can address people’s need for a reliable, efficient and comfortable transport -- something that other cities in the Philippines and beyond can learn from,” World Bank Country Director Motoo Konishi was quoted as saying in the release.
The Department of Budget and Management has released P9.48 billion in August to fund the Transportation Department’s Cebu BRT project.
The BRT project is estimated to cost P10.62 billion and expected to be operational by 2018.
Broken down, P1.1 billion will be shouldered by the Philippine government and P8.39 billion will be sourced from loans.
The remaining P1.14 billion will be financed by the private sector, particularly in purchasing vehicles.
Meanwhile, the DPL, the World Bank said, will support six programs:
• building farm-to-market roads and roads for tourism areas
• simplifying registration and licensing of small and medium enterprises
• updating the National Household Targeting System (NHTS), a database of poor families that need social welfare, including health insurance coverage.
• expanding the conditional cash transfer (CCT) program to children up to 18 years old to encourage them to finish high school
• implementing reforms, including the implementation of “sin” taxes to “improve fiscal sustainability”
• standardizing budget, spending, audit and reporting classifications for agencies in a bid to modernize the public financial management information systems in the country.
The $300 million aid also supports the government’s data.gov.ph project, an open data initiative which lists at least 600 data sets from government agencies.
“The government sees transparency around the use of public resources as fundamental to institutionalizing governance reforms. By making government data available to the general public, the government can get better feedback from citizens on how it can best deliver social services while making those in public service more accountable,” World Bank Senior Economist Kai Kaiser was quoted as saying in the release.--Mikhail Franz E. Flores
sourcE: Businessworld
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