ADB approves $1-B loan for Davao City’s public transport

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AT A GLANCE

• The Asian Development Bank (ADB) approves a $1 billion loan to help establish a city-wide public transport project in Davao City, the country’s first project to deploy electric bus fleets at scale.
• The Davao Public Transport Modernization project, ADB’s largest road-based public transport project in the Philippines, is expected to serve as a pilot for overhauling the country’s public road transport system.
• ADB said it will support the procurement of a modern fleet of about 1,100 buses with operations managed by the private sector under performance-based contracts.
• The new fleet is expected to reduce 60 percent of annual greenhouse gas emissions from public transport in he country’s third-largest city by population.

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The Asian Development Bank (ADB) approved a $1-billion loan to fund the deployment of electric bus fleet in Davao City in support the Philippines’ efforts in curtailing greenhouse gases and promote climate action.

In a statement Thursday, June 29, the Manila-based multilateral institution said the $1-billion loan will help establish a city-wide public transport project in Davao City, the country’s first project to deploy electric bus fleets at scale.

The Davao Public Transport Modernization project, ADB’s largest road-based public transport project in the Philippines, is expected to serve as a pilot for overhauling the country’s public road transport system.

ADB said it will support the procurement of a modern fleet of about 1,100 buses with operations managed by the private sector under performance-based contracts.

The new fleet is expected to reduce 60 percent of annual greenhouse gas emissions from public transport in he country’s third-largest city by population.

ADB Senior Transport Specialist for Southeast Asia Shuji Kimura said the project is set to transform the quality of Davao City’s public transport and support the city’s rapid economic growth with a low-carbon and climate-resilient bus system.

“Not only will this support the Philippines’ climate goals, but it will help to improve the lives of vulnerable populations especially women and the young who use public transport daily.”
The project will service about 800,000 passengers per day,” Kimura said.

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It also includes the construction of around 1,000 bus stops with bright lighting and shelters, five bus depots and three bus terminals, and provide bus driving training for the new system.

“The project will upgrade the city’s public transport experience via an intelligent transport system that includes a bus location system, automatic fare collection systems, and Wi-Fi connectivity in buses, terminals, and depots,” ADB said.

Based on extensive consultations with government and community stakeholders, the project will include a social development program to mitigate any adverse impacts and risks related to the restructuring of Davao City’s transport sector.

The assistance will include livelihood opportunities for affected public utility jeepney drivers, operators, allied workers, and their families.

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The article was originally published in Manila Bulletin and written by Chino S. Leyco.

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