30 Cebu transport groups apply for e-bus program

Local

A SHIFT in Cebu’s public transport system is moving from planning to implementation as transport cooperatives begin lining up for electric bus financing under a government-led modernization push aimed at cutting fuel costs and accelerating the transition to electric mobility.

At least 30 transport cooperatives in Cebu have already submitted requirements to join the electric bus modernization program led by the Department of Transportation and the Department of Trade and Industry.

Provincial Planning and Development Officer Elizar Sabinay Jr. said Cebu has been identified as a priority area for the nationwide electric vehicle rollout outside Metro Manila, with Metro Cebu positioned as a key hub.

In an interview on Monday, May 25, he said the provincial government moved beyond consultations and focused on onboarding transport cooperatives for loan applications under the program, where they can avail up to three EV buses.

“Province of Cebu is identified as one of the priorities in terms of mass EV rollout nationwide, so outside Metro Manila, it is Metro Cebu,” Sabinay.

Sabinay said Gov. Pamela Baricuatro engaged with officials of the Small Business Corporation (SBCorp) during a visit to Manila, where the agency committed to prioritizing Cebu in the deployment of electric buses for public transport.

He said transport cooperatives in the province have already begun submitting documentary requirements.

Sabinay said under the program, qualified transport cooperatives may apply for up to three electric buses priced at about P4.5 million each.

Manufacturers shoulder 50 percent of the unit cost, while SBCorp facilitates low-interest financing for the remaining balance.

Sabinay said the national government allocated P2 billion for the lending facility to support the electric bus transition and strengthen modernization efforts in the transport sector.

He said the province organized interested cooperatives to streamline loan applications and coordinate directly with SBCorp for assessment and approval.

“Ang commitment was the province to gather all those interested transport cooperatives for the orientation and onboarding of loan applications,” he said.

Sabinay added that SBCorp evaluates applicants based on cash flow and financial capacity before granting approval, ensuring that only viable cooperatives proceed to deployment.

He said approved applicants may receive up to three electric buses, although some may opt for fewer units depending on operational requirements and financial capacity.

He also noted that transport cooperatives remain prioritized under the government’s Public Utility Vehicle Modernization Program, with around 60 cooperatives currently accredited in Cebu under the Land Transportation Franchising and Regulatory Board.

Sabinay said the financing scheme removes the need for down payments once loans are approved, a structure he described as significantly different from traditional vehicle financing systems.

He compared the new financing scheme with previous jeepney modernization loans, noting that operators often had to secure funding through the Land Bank of the Philippines and Development Bank of the Philippines, while others resorted to more costly private financing options due to stricter requirements and additional expenses.

“But with this, there is no down payment as long as the loan is approved automatically, your order will be immediately checked in,” he said.

He added that manufacturers expect delivery of units within 120 days after approval, allowing relatively quick deployment once financing is finalized.

Applicants only need to submit basic documentary requirements, including SEC registration, business permits, annual audit reports, and bank account details.

Sabinay said SBCorp processes online applications within two weeks.

The electric bus rollout forms part of the government’s broader response to rising fuel prices and supply disruptions linked to global tensions, including the Middle East crisis, which has continued to affect transport operating costs.

Cebu Provincial Administrator Ace Durano said the shift to electric buses directly addresses the financial strain faced by transport operators, who have struggled with diesel prices reaching around P50 per kilometer in operations.

He said electric buses reduce operating costs significantly to around P5 per kilometer, creating a more sustainable model for transport cooperatives while maintaining service viability.

Durano stressed that the program does not expand fleet volume but replaces existing traditional public utility vehicles to avoid worsening traffic congestion.

He also said the province identified initial rollout routes based on commuter demand and traffic volume, including the Naga City–South Bus Terminal corridor and the Danao City–North Bus Terminal route.

Durano added that the system aims to improve commuter convenience through fixed schedules, with buses expected to arrive at regular intervals, reducing waiting times and uncertainty for passengers.

He said the provincial government will focus on route planning and system coordination rather than purchasing vehicles, leaving financing and operations to cooperatives and private partners under the arrangement.

Durano also confirmed that Baricuatro personally tested electric buses in Manila, where units have reportedly been operating for three to four years, providing a working model for Cebu’s planned rollout.

He said the system includes digital integration, including a mobile application that allows commuters to track buses in real time and purchase fares online.

Fare levels remain under discussion, but officials expect downward pressure on prices due to lower operating costs compared to diesel-powered units.

The provincial government targets initial deployment as early as July, with charging stations already being prepared along identified routes.(MyTVCebu)