Iloilo City Eyes PPP for Future BRT System

By Joseph Bernard A. Marzan

An Iloilo City official said on Wednesday, October 30, that the city government is exploring a public-private partnership (PPP) for a Bus Rapid Transit (BRT) system once a Swedish government-funded feasibility study on the project is completed.

Attorney David Garcia from the City Mayor’s Office explained that the upcoming feasibility study could serve as the basis for solicited proposals from potential investors.

“Right now, the PPP projects coming in are mostly unsolicited. Actually, all are unsolicited. There hasn’t been any solicited project. The difference is that, for solicited projects, we are the ones requesting proposals, while for unsolicited projects, private corporations approach us,” Garcia said.

“We anticipate that when the Swedfund feasibility study is finished, and it confirms the feasibility of a BRT in Metro Iloilo, we will open it as a solicited PPP project. That is what we expect to happen,” he added.

Acting Mayor Jeffrey Ganzon signed a memorandum of agreement with Swedfund, the Swedish government’s development finance institution, for a 6-million Swedish krona (estimated PHP33 million) grant on behalf of the Metro Iloilo-Guimaras Economic Development Council (MIGEDC).

The grant will fund a comprehensive feasibility study, covering technical assessments, financial projections, and environmental and social impact analyses.

“The study will assess the public transport sector to help ensure the BRT and the existing jeepney system complement each other,” Garcia said.

Garcia noted that consultants from Sweden, Spain, Thailand, and France would be invited to submit bids for the project.

He also said that the Swedish government had expressed a willingness to augment the grant if additional funds are required to complete or extend the study.

HIGH-CAPACITY BUS

Garcia clarified that the Swedfund grant is separate from another proposal for a high-capacity bus (HCB) system, which would operate solely within Iloilo City.

He said the HCB proposal is already in the negotiation stage, having been reviewed by the national government and forwarded to the city earlier this year.

If approved, the system will be managed by a joint venture between the private firm and the city government, with a portion of the revenue expected to benefit city government funds.