DOTr chief backs Edsa busway privatization

Transportation Secretary Jaime Bautista | PHOTO: Department of Transportation – Philippines official facebook page

The Department of Transportation (DOTr) has thrown its weight behind the proposal to privatize the Edsa Busway System as a way to upgrade public transportation at one of Metro Manila’s busiest thoroughfares.

Transportation Secretary Jaime Bautista, in a recent event, told reporters that the DOTr had instructed the Public-Private Partnership Center of the Philippines to conduct a feasibility study, adding that privatizing the Edsa Busway System could be beneficial to commuters. He said the prospective operator could introduce innovations like an automated fare collection system.

“The private sector, if they involve themselves in a project, they study it well. They are studying how they can be efficient,” he said in a mix of Filipino and English.

Impact on pricing

Bautista explained that fare pricing could go higher once the private entity takes over as the proponent would have to recoup investments. However, he said that it might not always be the case, as private sector entities would usually find ways to make operations more efficient in order to set competitive pricing.

In a recent joint statement, 30 private sector groups called on the government to privatize the mass transport system to aid the commuters.

“The EDSA Busway System provides an opportunity for the government to upgrade the country’s public transportation system, despite the challenges posed by severe fiscal constraints brought about by the pandemic,” they said.

The groups stressed that the “busway with rapid bus service has proven to be the most cost-effective urban mass transit system in the world.”

“It is easy to implement and requires significantly less capital expenditures, while it can provide high efficiency and ridership capacity similar to rail trams with the introduction of the latest technology in commuter transport: high capacity, articulated trackless long bus-trains running on rubber wheels,” they added.

Among the signatories were the American Chamber of Commerce of the Philippines, Federation of Filipino-Chinese Chambers of Commerce & Industry Inc., Financial Executives Institute of the Philippines, Management Association of the Philippines and Women’s Business Council Philippines. INQ