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The city council of Cali has approved a major initiative aimed at modernizing its mass transit system, MIO, through a $330 million loan to purchase 339 new buses. The agreement, backed by Mayor Alejandro Eder’s administration, seeks to replace aging vehicles and improve service efficiency. The funding will come from future revenues generated by a gasoline surcharge, with repayment planned over the medium term. The project was passed in the first debate by the Budget Commission of Cali's City Council, marking a key step toward transforming the transportation model in the region. The proposal outlines a detailed financial structure. Of the 339 buses, 274 will be diesel-powered and financed via a loan from Davivienda, while the remaining 65 electric buses will be funded through Bancolombia. The total amount of $330 million will be allocated under the framework of future budgets, with $45 billion designated for 2026 and $285 billion for 2027. This arrangement aims to reduce the transfers made by the Special District to the Fund for Stabilization and Subsidy to Supply (Fesde), which currently relies on current income funds. Council members emphasized both operational and fiscal benefits of the plan. Councilwoman Alexandra Hernández Cedeño stated that the approval represents confidence in Metrocali, the agency managing the transport system. She noted that the introduction of new technology would enhance frequency and route options, improve safety conditions for women, reduce informality in operations, and generate an estimated $350 million in savings for the city. Juan Felipe Murgueitio Bustamante, one of the proposers, highlighted that the acquired fleet will become public property of the Special District. He argued that this shift would allow for lower technical fares, better operational profitability, and greater autonomy for the city government in making strategic decisions related to the service. Sergio Mauricio Zamora Betancur supported the project, emphasizing the essential nature of public transportation and the need for state intervention. However, he pointed out that while private operators initially contributed capital, the municipality has taken responsibility for infrastructure, stations, technological platforms, and now the fleet. He suggested reviewing existing operation contracts to move toward a fully public transportation model. According to Álvaro José Rengifo, president of Metrocali, the new buses will cover 63% more kilometers per month than current vehicles, directly improving service frequencies. Additionally, between 100 and 150 of the existing buses in good condition will transition to Metrocali ownership to strengthen the Complementary Public Transit (TPC). These changes aim to expand coverage and ensure a more reliable and efficient system for residents. The initiative reflects broader efforts to overhaul the MIO model, which has long faced challenges such as high operating costs and reliance on subsidies. By acquiring the fleet and integrating advanced technologies, the city hopes to reduce dependency on external financing and create a more sustainable transport network. The inclusion of electric buses aligns with environmental goals and could position Cali as a leader in adopting cleaner public transportation solutions. The approval comes amid growing pressure to address inefficiencies in the system, including frequent breakdowns and inconsistent service. Critics have raised concerns about the long-term viability of relying on future revenue streams and the potential impact on the city’s budget if the projected savings do not materialize. Nonetheless, supporters argue that the investment is necessary to meet the demands of a rapidly expanding urban population and to provide a more equitable and accessible transport option for all citizens. Metrocali officials have indicated that implementation will proceed in phases, starting with the procurement of the first batch of buses and the integration of new routes. They expect the full rollout to take several years, during which time they will monitor performance metrics and adjust strategies as needed. The success of this initiative will depend on effective management of the loan repayments, the reliability of the new fleet, and the ability to maintain public trust in the evolving transportation model.