Friday , 3 July 2026

DOTr launches P20-M PUV service contracting in Cebu

The Department of Transportation (DOTr) and the Cebu provincial government recentlylaunched the country’s first local-led service contracting initiative dubbed “Tabang Pangbyahe Program,” which has a P20 million allocation from the department.

An agreement was signed by officials from DOTr, the Cebu local government and the Land Transportation Franchising and Regulatory Board establishing the program which operatesunder the net service contracting model. 

The national government through DOTr will release the allocated funds directly to the province, allowing eligible bus operators to benefit from the program.

Pres. Ferdinand Marcos Jr. earlier instructed transport agencies to ensure a steady income for public utility vehicle drivers and operators to offset the effects of fuel price fluctuations arising from the Middle East crisis, heavily impacting the domestic transport sector. Officials said the program is also designed to provide sufficient supply of public transport for commuters during the start of the school year.

DOTr Secretary Giovanni Lopez said, “This program is a good example of how such partnerships can help improve public transport services for commuters. Not only will operators and drivers benefit from this program of our President, but also commuters because we will be able to ensure that there are enough public transport vehicles, especially now that students are back in school.”

The initiative incentivizes bus operators to operate identified underserved routes. Under the program, passengers may only board and alight at designated stops, which the Provincial Planning and Development Office researched through a spatial study.

To participate, operators should meet standards set by the local government. These requirements include installing global positioning system devices linked to a provincial command center for real-time monitoring, maintaining strict sanitation, and utilizing low-floor buses accessible to people with disabilities. Operators must also maintain working air conditioning and enforce a strict 60-passenger, no-standing policy.

Cebu Governor Pamela Baricuatro welcomed the initiative as a major transition toward dependable regional transit, saying “Through this partnership among the national government, the Province of Cebu and our local stakeholders, we are taking a unified step toward more efficient and accessible transport services across Metro Cebu and eventually throughout the entire province.”

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