The Libreng Sakay Program ends on December 31, as the Department of Transportation wants to privatize the EDSA busway carousel.
The Libreng Sakay Program which offers free rides on the EDSA Busway is set to end this Friday as the government wants to privatize the busway in 2023.
The Libreng Sakay Program was able to serve nearly 400,000 commuters daily, providing them with buses that are fully air-conditioned with clean comfort rooms, free Wi-Fi access, and Covid-19 protection supplies such as masks and alcohol. The program was able to provide commute relief for Filipinos who rely on public transport for their daily commute to work, school, or other places.
The Department of Budget and Management (DBM) said that the Libreng Sakay was not a regular government program and was not included in the 2023 National Expenditure Program of President Marcos Jr., who extended it from June 30 to December 31.
The Department of Transportation (DOTr) proposed a P12 billion budget to continue the free-ride program for next year but was disapproved by the DBM.
EDSA busway privatization
Transportation Secretary Jaime Bautista said that the EDSA busway system would be turned over to the private sector in 2023, and its future operator will be tasked with managing it and profiting from it.
Terry Ridon, convenor of Infrawatch PH, said that the DOTr should ensure that the future operator of the EDSA busway is capable of both building stations and operating buses, which are two distinct businesses.
Several groups have expressed their interest in competing for the EDSA busway concession, 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 said.
With the government setting out to privatize the busway, there is little to no chance to truly extend the free rides on EDSA buses for next year. Commuters will now have to pay a minimum of P15 when taking the carousel buses plying EDSA.
Rizal Commercial Banking Corp. chief economist Michael Ricafort believes the government is making the right decision by prioritizing the privatization of transportation services because these assets pay off faster than usual with a captive market.
To further encourage the privatization of the EDSA busway carousel, Jakarta has its own transport system called TransJakarta, which is the first-ever bus rapid transit system. It provides fast public transportation, helping reduce rush hour traffic.
This would be beneficial in the Philippines especially since the country, specifically EDSA, is known for its heavy traffic conditions.
DOTr funding
For 2023, the DOTr will receive P1.2 billion in funding for the service contracting program (SCP), in which the agency hires public utility vehicles (PUVs) to service transportation routes and provide free rides to commuters.
However, the SCP allocation will not be used just for the EDSA buses, but also for PUVs in the regions to ensure that commuters also from rural areas will benefit from the program.
After the free ride service expires, the DOTr intends to keep at least 600 buses circling the EDSA carousel, down from a peak of 750 buses.
DOTr will also receive P212 million in funding to purchase and install traffic signals, as well as hire janitorial and security services for the busway.
Tags: #EDSA, #LibrengSakay, #Privatization, #Transportation