CEBU, Philippines — In response to the persistent national energy crisis and rising fuel costs, the Cebu Provincial Government is accelerating plans for a large-scale rollout of electric buses (e-buses) across the province. Governor Pam Baricuatro and Provincial Administrator Ace Durano recently met with executives from Global Electric Transport (GET) Philippines to finalize the project’s deployment and financing framework.
The initiative, backed by the Department of Transportation (DOTr) and the Department of Trade and Industry (DTI), aims to modernize Cebu’s mobility while reducing dependency on volatile diesel prices.
The province is targeting an initial rollout of 50 electric buses by July 2026, with broader implementation planned before September.
- Key Routes: Initial corridors include Naga City to the South Bus Terminal and the North Bus Terminal to Danao City. These routes were selected based on high commuter volume and traffic data.
- Island Connectivity: The plan includes expanding e-bus services to tourism hubs such as Bantayan and the Camotes Islands to boost local tourism and provide cleaner transport options for remote communities.
- Modern Features: Commuters will have access to a mobile application for real-time bus tracking and online fare payments, improving predictability and convenience.
Provincial officials highlighted the stark difference in operational costs between traditional units and e-buses:
- Lower Overheads: Traditional diesel-powered vehicles currently cost around ₱50 per kilometer to operate. In contrast, electric buses cost only ₱5 per kilometer.
- Fare Pressure: Due to the significantly lower operating costs, officials noted there is strong pressure to lower commuter fares once the system is fully operational.
- No Vehicle Increase: To avoid further congestion, e-buses will replace existing traditional units that have become too expensive for cooperatives to maintain.
The project is designed with a “cooperative-friendly” business model to ensure sustainability for local transport operators:
- Zero Cash-Out: Under the financing scheme, manufacturers will shoulder 50% of the unit cost, while the remaining 50% is loaned to cooperatives via the DTI’s Small Business Corp.
- Pay-as-you-Earn: Cooperatives will not be required to provide upfront capital. Instead, they will pay off the loan based on daily operations and revenue.
- Maintenance Support: Manufacturers like GET Philippines will handle vehicle maintenance and install the necessary charging infrastructure in exchange for a share in the revenue.
The Provincial Planning and Development Office is currently finalizing technical studies and will submit a formal letter of intent to the DOTr and DTI by the end of April. This project marks the first large-scale integration of electric vehicles into Cebu’s public transport network, following smaller private-led pilots and the recent deployment of heritage-route e-buses in Cebu City.