No more free rides: EDSA busway privatization set

MANILA, Philippines — The government no longer plans to extend the free rides on the EDSA busway that serves nearly 400,000 commuters daily, as the Department of Transportation is eyeing to complete the privatization of the P551-million infrastructure in 2023, DOTr Secretary Jaime Bautista announced yesterday.

Bautista said the EDSA busway system would be turned over to the private sector next year, leaving its future operator the task of managing it and the benefit of profiting as well.

He said several groups have relayed their interest to vie for the concession of the EDSA busway, compelling the DOTr to prepare the terms of reference for the privatization.

“We hope to conclude it by 2023. We will work with the private sector and we will encourage investors to participate in the privatization of the EDSA busway,” Bautista told reporters.

As the government sets out to privatize the busway, Bautista said there is little to no chance that free rides on EDSA buses would be extended beyond Jan. 1, 2023.

Starting next year, commuters will have to pay a minimum of P15 when taking the carousel buses plying EDSA.

Bautista said the government can no longer afford to spend up to P12 million daily to subsidize the “libreng sakay” program, especially as it tightens its belt to reduce the budget deficit.

For 2023, the DOTr will receive P1.2 billion in funding for the service contracting program (SCP) wherein the agency hires public utility vehicles (PUVs) to service transport routes and provide free rides to commuters.

However, Bautista said the SCP allocation might be used not only for EDSA buses, but also for PUVs in the regions to ensure that commuters in rural areas benefit from the program.

Based on records, the free bus rides on EDSA benefit 389,579 passengers daily, peaking to 400,000 during holidays.

Upon the expiry of the free ride service, the DOTr plans to maintain at least 600 buses circling the EDSA carousel, from a high of 750 buses.

“We will maintain about 600 to 650 buses on the EDSA carousel. Once the libreng sakay lapses, we expect the number of passengers to go down as some may look for other means of transport such as the MRT-3,” Bautista said.

Data obtained by The STAR showed that the DOTr spent P551 million to build, upgrade and maintain the busway from 2020 to 2022.

The DOTr will get funding of P212 million next year to purchase and install traffic signals as well as hire janitorial and security services for the busway.

Infrawatch PH convenor Terry Ridon said the DOTr should ensure that the future operator of the EDSA busway has the capability to both construct stations and operate buses: two businesses that require particular expertise.

“The government should decide whether the privatization includes developing the stations and operating the bus system as well. Including the latter will raise concerns from the current busway operators whose operations will be terminated under a new contract,” Ridon told The STAR.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the government is taking the right step in prioritizing the privatization of transport services, as these assets pay off faster than usual with a captive market using them.