ILOILO CITY, Philippines — The proposed bus rapid transit (BRT) system in Iloilo City and nearby towns is gaining ground after a landmark agreement for its funding was signed on Tuesday, October 29. 

The grant agreement for technical assistance was signed between the Metro Iloilo-Guimaras Economic Development Council (MIGEDC) and Swedfund International, Sweden’s development finance institution. 

Ambassador Harald Fries of Sweden said Swedfund International will provide a 6 million Swedish Krona or over P33 million grant through Business Sweden to carry out the study. 

“Sweden is proud to support Iloilo’s aspirations for a more efficient and sustainable public transport system. Through this collaboration, we aim to provide innovative solutions that not only improve urban mobility but also enhance the quality of life for residents of Iloilo,” he said.

The study will assess the technical, financial, and environmental viability of the BRT system, covering the Metro Iloilo area, including the city and nearby municipalities such as Cabatuan, Leganes, Oton, San Miguel, Santa Barbara, and Zarraga.

“We still don’t know yet who will be the consultant and we are moving quickly on this. Hopefully as soon as we finalize the consultant we will start the feasibility study right away,” said Fries. 

He said Swedfund International will only provide financial assistance but it will be MIGEDC, the project owner, whick will determine who will undertake the study . 

Iloilo is the first local government unit in the country to receive grant assistance from Swedfund International. 

Fries added that the finance institution is also committed to provide assistance to priority projects of the city and province regarding waste management, energy, and developing the tourism sector. 

“These areas should focus on sustainability and Sweden has a lot of know-how in the area of sustainability, technology, and we decided to continue the dialogue to see if we can find other areas of partnership,” he said. 

Iloilo City acting Mayor Jeffrey Ganzon, who signed on behalf of MIGEDC Chairperson Mayor Jerry Treñas, said the partnership with Swedfund International is a key milestone in the goal to develop a modern, efficient, and sustainable transportation system for Iloilo. 

“The feasibility study will give a clear path forward toward realizing the Metro Iloilo BRT system, a critical project for the future of our city and nearby municipalities, including the province of Guimaras,” he added. 

On top of this, there is also a separate proposal for a P2.48 billion high-capacity bus system for Iloilo City under the public-private partnership (PPP) Center.

Based on the PPP Center website, the city government accepted the unsolicited proposal of First Balfour Inc., a subsidiary of the Lopez Group’s First Philippine Holdings, for negotiation in June 2024.

In March, Treñas said that the initial proposal by the firm outlines three lines, encompassing routes from Diversion Road, Arevalo, and Jaro districts, each serviced by 16 buses. – Rappler.com