Negosyante News

May 16, 2024 5:02 am

Calls for Privatization of EDSA Busway Maintained by MAP to Improve Public Transport

IMG SOURCE: BusinessWorld

The Management Association of the Philippines (MAP) continues to push for the privatization of the EDSA busway. The organization believes that the move will significantly boost the country’s public transportation system. Given this, the MAP recently met with Transportation Secretary Jaime Bautista to examine the potential benefits of privatization.

According to the Department of Transportation (DOTr), the EDSA busway serves more than 335,000 commuters a day. However, improvements at bus stations are still necessary. The MAP affirms that the private sector possesses adequate capabilities for the progression of public projects. During their meeting with the DOTr, MAP President Rogelio Singson and MAP Infrastructure Committee head Eduardo Yap committed to submit their recommendations and data regarding the privatization. Singson was the former secretary of the Department of Public Works and Highways (DPWH).

Bautista noted that the DOTr welcomes any suggestions from the MAP. “The benefits of ‘libreng sakay’ seems to be outweighed by the long lines at the busway stations,” he explained. “This is where we welcome suggestions from the private sector on how to finetune the operation to attract the most benefits of the EDSA carousel.”

Former DOTr Undersecretary Ruben Reinoso, on the other hand, claimed that further research is required. Only then can privatization be considered the best route to take. “BOT [Build-Operate-Transfer] law has very stringent and tedious requirements. I believe it will take you at least a year to put forward a proposal,” Reinoso elaborated.

Moreover, several private companies also asked for more clarity regarding the plan, particularly in terms of the mode of investment. “We’re ready. We’re willing to consider,” asserted Jeffrey Lim, SM Prime Holdings President. “I think what we need is what would be the mode of PPP [public-private partnership] and what is the final direction from government.”

Megawide Chairman Edgar Saavedra echoed similar sentiments. “[I hope it will be finalized] like what is the direction of the government in terms [of the] fare box. Will it be total subsidy ba or [not]?” Saavedra furthered that the government should not “let the private sector take the market risk.” In response, Bautista maintained that he will consult with the PPP Center to iron out the issue.

 

Source: ABS CBN

Comments are closed for this article!

Subscribe to Our Newsletter and get a free pdf:

Sign Up for negosyante news

and receive a copy of The Crypto Cheat Sheet (PDF)
and NFT Cheat Sheet for free!

* indicates required