The World Bank
Cebu Bus Rapid Transit (BRT) Project (P119343)
REPORT NO.: RES57233
DOCUMENT OF THE WORLD BANK
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF
CEBU BUS RAPID TRANSIT (BRT) PROJECT
APPROVED ON SEPTEMBER 26, 2014
TO
THE REPUBLIC OF THE PHILIPPINES
TRANSPORT
EAST ASIA AND PACIFIC
Regional Vice President: Manuela V. Ferro
Country Director: Ndiame Diop
Regional Director: Ranjit J. Lamech
Practice Manager/Manager: Benedictus Eijbergen
Task Team Leader(s): Sri Kumar Tadimalla
The World Bank
Cebu Bus Rapid Transit (BRT) Project (P119343)
I. BASIC DATA
Product Information
Project ID Financing Instrument
P119343 Investment Project Financing
Original EA Category Current EA Category
Partial Assessment (B) Partial Assessment (B)
Approval Date Current Closing Date
26-Sep-2014 30-Jun-2023
Organizations
Borrower Responsible Agency
The Republic of the Philippines Department of Transportation
Project Development Objective (PDO)
Original PDO
The Project Development Objective (PDO) is to improve the over-all performance of the urban passenger transport
system in the Project Corridor in Cebu City in terms of the quality and level of service, safety, and environmental
efficiency.
Summary Status of Financing (US$, Millions)
Net
Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed
IBRD-84440 26-Sep-2014 14-Oct-2014 03-Dec-2014 30-Jun-2023 116.00 25.00 91.00
TF-17646 26-Sep-2014 14-Oct-2014 03-Dec-2014 30-Jun-2023 25.00 0 25.00
The World Bank
Cebu Bus Rapid Transit (BRT) Project (P119343)
Policy Waiver(s)
Does this restructuring trigger the need for any policy waiver(s)?
No
II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES
1. The World Bank Board approved the Cebu Bus Rapid Transit Project (CBRTP) on September 26, 2014, with
financing comprised of an IBRD Loan in the amount of US$116 million, Clean Technology Fund (CTF) Grant TF-17646 in
the amount of US$25 million, and Government of the Philippines (GOP) counterpart financing in the amount of US$30
million. The Agence Française de Développement (AFD) provided parallel financing in the amount of EUR50.89 million
(US$57.5 million equivalent), for a total financing amount of US$228.5 million.
2. The Loan Agreements for the CBRTP became effective on December 3, 2014. The CBRTP was restructured on
June 3, 2021, to extend the project closing date by two years, from June 30, 2021, to June 30, 2023. The current rating
of the Progress towards achievement of the Project Development Objective is Moderately Unsatisfactory and
Implementation Progress rating is Moderately Satisfactory. US$23.9 million or about 17% of the US$141.0 million total
loan commitment from IBRD and CTF has been disbursed. The project is in compliance with the financial covenants
and is up to date in the submission of the Interim Financial Reports and Annual Audited Project Financial Statements.
3. During the latest mission in November 2022, a notable improvement was observed in the performance of the
project under the new administration which assumed office in July 2022. Even so, a substantial portion of the project
activities will not be completed by the closing dates of the support from AFD (March 31, 2023) and CTF and WB (June
30, 2023).
4. The World Bank and AFD informed the government that a request for second extension could be considered for
completion of the activities as per the current scope/design as agreed during and since the Mid-Term Review (MTR),
subject to (a) the development – and satisfactory implementation – of a detailed action plan covering all remaining
key activities to be completed by the proposed extended closing date; and (b) receiving a request for extension and
restructuring to make necessary amendments to the loan agreement and results framework, to ensure that they duly
reflect the current description and costs of the components and plans for financing them and the expected outputs
and outcomes based on the latest available assessments.
5. Such a restructuring and revisions are necessitated because, by the time of the first restructuring, in keeping
with then assessment of the issues related to design and land acquisition, the concept design of BRT infrastructure and
system was updated to include support for 12.16 km of trunk services (traversing from IT Park to Mambaling to South
Road Properties), 28.8 km of feeder services ( southwest to Talisay, a neighboring city, via two routes and northeast
from Cebu City to Talamban) and 1.2 km of urban realm improvement. This entailed converting (a) the Bulacao to
Mambaling section from segregated to mixed traffic; and (b) Ayala to IT Park section into a segregated section. These
changes, in turn, have resulted in (a) lower levels of estimated ridership and savings in annual GHG emissions; and (b)
rise in the estimated total project cost since appraisal in 2013, from PHP9.9 billion to PHP17.0 billion, mainly due to
increase in the costs related to, inter alia, Land Acquisition and Resettlement (from PHP1.5 billion to PHP6.1 billion,
Project Management (from PHP266 million to PHP1 billion), and BRT infrastructure and system (from PHP5.5 billion to
PHP6.1 billon). In view of this, many components/activities also now need to be jointly financed and hence,
corresponding changes are required in the percentage of financing by the respective development partners.
6. However, the Department of Finance requested only an extension of the closing date of the IBRD and CTF loans
supporting the project to December 31, 2025, and informed that the project restructuring will be subject to the review
and approval of the ICC depending on DOTr’s compliance, within 3-4 months, of the remaining requirement for the
said restructuring request.
The World Bank
Cebu Bus Rapid Transit (BRT) Project (P119343)
7. In view of the above, it is proposed to extend the closing date by three months from June 30, 2023, to
September 30, 2023, to allow time for the government to submit a request for restructuring of the project with
necessary changes. Upon receiving such request, the project could be duly restructured to facilitate completion of
activities under the current scope/design agreed during the MTR and thereby satisfactorily achieve the Project
Development Objective.
III. DETAILED CHANGES
LOAN CLOSING DATE(S)
Original Revised Proposed Proposed Deadline
Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal
Applications
IBRD-84440 30-Jun-2021 30-Jun-2023 30-Sep-2023 31-Jan-2024
TF-17646 30-Jun-2021 30-Jun-2023 30-Sep-2023 31-Jan-2024