Cebu BRT Landowners Still Unpaid as World Bank Loan Deadline Nears

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Cebu BRT Landowners Still Unpaid as World Bank Loan Deadline Nears

Several property owners affected by the Cebu Bus Rapid Transit project are still waiting for compensation even as the September 30, 2026 deadline for the World Bank financing approaches.

Cebu City Mayor Nestor Archival’s chief of staff, Kenneth Siasar, said the city government has received complaints from private property owners whose land had already been cleared or vacated for the BRT alignment but who have yet to receive the payments they were promised.

Siasar said the city is reviewing the claims and supporting documents to determine whether the compensation can still be processed under the applicable guidelines. The affected property owners were asked to submit a list of claimants and the amounts being sought so the city can verify their records.

The compensation issue is tied to the project’s long-running right-of-way problems. In July, officials said the original Bulacao-Talamban alignment involved 121 properties, with 39 targeted for negotiated sale and 82 potentially requiring expropriation. At that time, only eight properties had been paid for.

The national government had also allocated P900 million for acquiring properties around F. Vestil Street, an important connection toward the South Road Properties. City officials previously said the funds had been downloaded to Cebu City, but payments were delayed by documentary and ownership requirements.

The Department of Public Works and Highways was reportedly involved in commitments to some affected landowners, with claims now being reviewed by the city after the funds and project responsibilities shifted between agencies. The city is coordinating with the Cebu City Council as it works on measures concerning the remaining BRT right-of-way claims.

The World Bank financing is scheduled to close on September 30. Project restructuring canceled $59.9 million from the original $116 million International Bank for Reconstruction and Development loan and removed the $25 million Climate Transformation Fund financing. Civil works for BRT Packages 2 and 3 were also removed from World Bank financing after delays in procurement, right-of-way acquisition and resettlement.

The restructuring has left the project with a significantly reduced scope. Earlier plans envisioned a much longer trunk and feeder network, while the remaining World Bank-supported work is centered on the completed or ongoing first phase. Future phases are expected to require other financing arrangements, including a proposed public-private partnership.

For affected landowners, however, the immediate concern remains compensation for properties already cleared or acquired for the project. With the financing deadline approaching, Cebu City is now reviewing the outstanding claims while continuing efforts to address the right-of-way issues that have delayed the BRT’s wider implementation.

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