THE 21ST City Council approved on Tuesday, Dec. 2, the measure creating a Trust Fund, which serves as a counterpart of the local government for the Davao Bus Project.
The ordinance provides for the management of the Trust Fund pending the implementation of the Davao Public Transport Modernization Project (DPTMP).
Councilor Danilo Dayanghirang said the allocation is sourced from the General Fund and will be placed in a new special account, which the city government will open through the Department of Budget and Management.
The DPTMP is backed by a P54.89 billion loan from the Asian Development Bank, which is eyed to replace the city’s jeepney network.
Once operationalized, a 672-kilometer integrated bus network will be created with a fleet of 380 electric and 720 Euro-V diesel buses.
The Department of Transportation (DOTr) has allocated approximately P2 billion for the Davao Bus Project in 2026, significantly lower than the P14-P17 billion.
Atty. Tristan Dwight Domingo, assistant city administrator and Davao Bus Project manager, revealed the city’s counterpart amounts to P1.5 billion.
In an earlier interview, Domingo said the trust fund reflects the city’s commitment to the project.
Domingo stressed that the allocation will ensure that the city is prepared once the project is implemented and will avoid financing problems.
“This is a multi-year undertaking for the city. Our proposed strategy is to allocate specific amounts each year into the trust fund, based on the project’s evolving financial needs,” he said.
The city is confident of reaching the target as it will be sourced from local revenues, considering the city is now generating over P4 billion annually.
