Cebu BRT Property Owners Still Await Compensation as World Bank Loan Nears Closing

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Cebu BRT Property Owners Still Await Compensation as World Bank Loan Nears Closing

Some property owners affected by the Cebu Bus Rapid Transit project are still waiting for compensation, with Cebu City reviewing their claims just days before the World Bank financing for the project is scheduled to close.

Cebu City Mayor Nestor Archival’s chief of staff, Kenneth Siasar, said the city government has received complaints and documents from affected property owners whose properties have already been cleared or vacated for the BRT alignment but who have yet to receive payment.

Siasar said the mayor instructed the affected property owners to submit a list of claimants and the amounts they are seeking so city officials can verify their documents and determine whether the claims can be processed under existing guidelines.

The right-of-way issue has been one of the major challenges facing the Cebu BRT project.

Earlier figures cited by officials showed that the original Bulacao-Talamban alignment involved 121 properties, with 39 targeted for negotiated sale and 82 requiring expropriation. At that time, only eight lots had been paid for, although the figures may have changed following revisions to the project scope.

The city had also previously reported that the national government allocated P900 million for property acquisition around F. Vestil Street, a connection toward the South Road Properties. However, payments were delayed by documentary requirements.

The World Bank financing is scheduled to close on September 30, 2026. Under the latest restructuring, $59.9 million of the original $116 million International Bank for Reconstruction and Development loan was canceled, along with the entire $25 million Climate Transformation Fund loan.

Civil works under Packages 2 and 3 were also removed from World Bank financing after procurement had not begun, with right-of-way and resettlement delays among the factors cited.

Package 2 covered major BRT trunk sections, including the South Road Properties–South Bus Terminal and Capitol–IT Park corridors, while Package 3 involved feeder routes connecting Talisay City, Bulacao, SRP, IT Park and Talamban.

Property acquisition for the project is governed by the country’s right-of-way law, including Republic Act 10752, as amended by Republic Act 12289, as well as requirements applicable to foreign-assisted projects.

With the loan closing date approaching, Cebu City is continuing to review outstanding property claims while coordinating with the agencies involved in the BRT project.

For affected landowners, the immediate issue remains the verification and processing of compensation for properties already acquired or cleared for the project, while the city works through the remaining right-of-way requirements.

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