DOTr to firm up Edsa busway privatization

The Department of Transportation (DOTr) threw its support behind local conglomerates potentially taking over the operations and maintenance of the Edsa Busway system, a major transportation service traversing Metro Manila’s busiest thoroughfare.

Mark Steven Pastor, Transportation Undersecretary for road transport and infrastructure, told reporters on Monday that the government was set to complete the feasibility study for Edsa Busway by the third or fourth quarter this year so they could start the bidding process after.

“[We] are very supportive of that, especially if a local conglomerate wants to participate in our projects,” Pastor said on the sidelines of an event hosted by Stratbase ADR Institute in Taguig City.

Edsa Busway is a dedicated median lane for city buses traveling from Monumento to Pasay City.

Pastor noted that the government should be able to pick the technical advisor (TA) for the potential public-private partnership (PPP) project by the second quarter. A TA is tasked to study the project as the government has yet to decide whether the Edsa Busway will require one or several entities operating and developing the transportation system.

Recently, Megawide Construction Corp., which owns Parañaque Integrated Terminal Exchange (PITX) private operator MWM Terminals Inc., said it’s considering joining the bidding.

PITX head of corporate affairs and government relations Jason Salvador earlier said they were studying the project, adding they have the expertise to operate and maintain the busway.

Makati Business Club executive director Coco Alcuaz, on the sidelines of the same event, said the potential PPP project could draw interest from both foreign and local players once the terms of reference were out. Transportation projects are among the government’s top socioeconomic thrusts.

“It is time to seriously consider putting it in place in a privatized mode. It is very important for the government to overweight public transport,” he said.

“Edsa [Busway] is kind of hybrid between rails and buses …That is a very beneficial endeavor for the government to pursue,” he added.

Alcuaz said the government should push for service contracting program (SCP) next to ensure “timely, adequate service and also reduce the congestion that comes when buses pile up because they are all competing for the same commuters.”

Under SCP, the public utility vehicle operators are contracted by the Land Transportation Franchising and Regulatory Board and the DOTr to transport passengers to predetermined locations and with specified schedules.

Transportation Secretary Jaime Bautista previously said that placing the Edsa Busway system under a PPP venture could benefit commuters as the operator would be able to introduce innovations such as an automated fare collection scheme. INQ