THE oversupply of buses, among other reasons, worsens traffic along Epifanio de los Santos Avenue (Edsa) and greatly contributes to congestion-related losses of Metro Manila estimated at $2.019 billion a year.

In an appraisal document of the Edsa Bus Reduction Project proposed for World Bank funding, the Washington-based lender said Edsa, Metropolitan Manila’s main thoroughfare, carries some 225,000 vehicles daily, including around 3,500 franchised and 1,500 unauthorized/illegal buses.

This significantly contributes to congestion-related losses in Metro Manila which cost the country around $2 billion annually, or P277 million daily, in lost time of workers; and another $19 million, or P962 million, annually in hospitalization expenses and lost productive time due to illness.

“Edsa is the main circumferential highway, but suffers from congestion. The 24-km, 10-lane Edsa is Metro Manila’s main circumferential highway,” the World Bank document stated.

“The congestion in Edsa is caused by a combination of factors, inadequate and poorly planned infrastructure; too many vehicles; and poor enforcement of rules and regulations,” it added.

The World Bank document said there is an “oversupply of buses” on Edsa. The bank said after the completion of the Metro Rail Transit (MRT) in 2000, bus riders plying Edsa daily significantly dropped.

Due to the high supply relative to demand for buses, the bank said, there is intense competition among drivers, which ultimately worsens traffic congestion. This increases loading and unloading time for passengers since bus drivers tend to compete for space to wait for passengers. 

“At present, it takes an average of five hours to complete a round trip along 24-km Edsa, at an average speed of about 15 kilometers per hour and one-minute stop at each of the more than 15 designated bus stops. Based on the authorized level of 3,500 buses, the service headway at Edsa is one bus per 11.2 seconds,” the document stated.

The bank partly blames the oversupply of buses on Edsa on the open-franchise system, which is governed by a 70-year-old Public Service Act (Commonwealth Act 146). The Land Transportation Franchising and Regulatory Board (LTFRB) grants the franchises for buses for a period of 15 years.

The bank said that while the LTFRB had the power to deny or cancel franchises, it has no official or transparent quota on the number of units that can be granted Certificates of Public Conveniences (CPCs) on Edsa.

CPCs are transferable to other operators or units and therefore, rarely, if ever, canceled. These are merely passed on or sold to other operators who can meet the LTFRB criteria and requirements.

Further, the bank lamented on the fact that efforts to retire some franchises on Edsa have been met with resistance from bus operators due to the continued operation of illegal units or colorum.

“Reducing the number of buses should, therefore, begin with getting rid of the illegal operations. LTFRB is shortening the validity period of the franchise period from 15 years to only five years,” World Bank said.

A Radio Frequency Identification (RFID) and Tracking System, which is included in the Edsa Bus Reduction Project, will be fitted on all legally registered buses, using a tamper-proof method to prevent the tags from being moved from one bus to another.

Each tag has a unique identifier code, which is associated in the computer database. Readers are located at all terminals, at principal stops, and at a number of other locations to detect off-route running buses.

The bank said that when the RFID-tagged bus enters the area of the reader, its presence is detected by the reader and the information is sent to the central server. This, the bank stressed, will help eliminate illegal operators and will establish a culture of compliance.

The total estimated cost of the project is around P277.63 million, inclusive of the recurring cost for the first year after it has been put up. Capital investment, which shall be part of the expenses for the first year (if completely put up) is around P272.99 billion. Every year thereafter, an amount equivalent to P4.64 million will be required by the Metropolitan Manila Development Authority (MMDA) to sustain the project.

The project will be financed from the programmed and unprogrammed fund sources within MMDA. Additional funding will be sought from the national government in the form of subsidies to support development costs. The expected revenue that can be derived from the CDM may be utilized to fund additional important components and replication to other routes for added benefits.