Cebu City Vice Mayor Tomas Osmeña is questioning the proposed acquisition of properties along F. Vestil Street in Barangay Mambaling for the Cebu Bus Rapid Transit (CBRT) project, raising concerns over the reported valuation and the use of public funds.
During a Cebu City Council session on September 29, Osmeña said he plans to bring the matter before the Office of the Ombudsman. He said he intends to file a case within two weeks, citing questions surrounding the proposed purchase of the properties and their role in the CBRT project.
At the center of the dispute is the reported valuation of the F. Vestil properties at P80,000 per square meter. Osmeña estimated that acquiring the properties could cost the city about P200 million based on the valuation and the area involved.
Osmeña also questioned the proposed use of the properties, describing them as commercial lots that could be acquired for the relocation of people displaced by the BRT project. He argued that residential properties could instead be considered for relocation purposes.
The properties are part of the right-of-way requirements for the planned CBRT alignment. However, the project route itself remains the subject of a dispute between the Cebu City Government and the Department of Transportation (DOTr).
The City Council previously rejected a proposed realignment and called for the restoration of the original CBRT route running from Barangay Bulacao in southern Cebu City to Barangay Talamban in the north.
The City Legal Office, however, said the council’s rejection of the proposed realignment does not automatically cancel the route. According to the legal office, authority over the project’s alignment and implementation rests with the DOTr, subject to applicable laws and the conditions governing the project’s financing.
The unresolved alignment issue has affected the processing of payments for properties involved in the project. The CBRT Project Management Office had asked the City Legal Office for guidance on whether it could proceed with payments to affected property owners.
The legal office advised the city to coordinate with the DOTr first to determine whether the F. Vestil properties remain necessary under the project’s current alignment. Based on that recommendation, the City Council agreed to put the right-of-way payments on hold pending clarification from the national government agency.
The decision does not remove property owners’ right to receive just compensation if their properties are ultimately determined to be needed for the project. The legal issue instead concerns whether payments should proceed while questions remain over the final alignment and necessity of the properties.
During the council proceedings, Councilor Mikel Rama moved to adopt the City Legal Office’s recommendation. Councilor Winston Pepito had separately sought information on the number of affected people, the status of property acquisitions and payments, the source of funds, and communications between the CBRT project office and the DOTr.
Pepito later withdrew his motion following objections raised during the session. Osmeña maintained that the concerns surrounding the property transaction should be taken to the Ombudsman.
Several figures have been cited in connection with the acquisition, although they refer to different aspects of the project. DOTr Project Implementation Unit engineer Norvin Imbong previously told the council that P460 million had been transferred to Cebu City for right-of-way acquisition in the area.
Imbong said 52 lots remained subject to acquisition at the time of the earlier hearing, with fewer than half having already been settled or paid. A separate P900-million National Government allocation for property acquisition in the area had also been reported by the city.
Osmeña also raised allegations concerning the property owner’s supposed connections with City Hall and referred to other transactions involving the owner. No documents supporting those allegations were presented during the council session, and the claims remain allegations.
The controversy comes as the broader CBRT project reaches a critical point. The World Bank-supported project formally reached its September 30, 2026 closing date after years of implementation delays, right-of-way problems and disputes over the project alignment.
World Bank project documents indicated that implementation had progressed slowly, with only one section of the planned BRT corridor substantially completed before the project closing date. Other major civil works and components had yet to begin, while right-of-way acquisition and resettlement issues contributed to delays.
The project’s financing also underwent changes. About 29%, or $40.62 million, of combined International Bank for Reconstruction and Development and Climate Transformation Fund financing had been disbursed before a partial cancellation of loan proceeds in January 2026. Disbursement from the Agence Française de Développement loan stood at about 6%, or 3 million euros.
The latest dispute therefore involves more than the price of individual properties. It also reflects the unresolved question of which route the CBRT will ultimately follow and whether specific properties being considered for acquisition remain necessary under the project’s final configuration.
For Cebu City, the immediate issue is whether the city should continue processing right-of-way payments while waiting for clarification from the DOTr. The City Legal Office has recommended coordination with the national agency before further payments are made.
Osmeña’s planned Ombudsman complaint could add another layer of scrutiny to the proposed transaction, while the city and DOTr still face the broader challenge of resolving the CBRT alignment and right-of-way issues surrounding the long-delayed transportation project.
