LAND acquisitions remain to be the “pain points” in the implementation of the Davao Bus Project (DBP), as the Department of Transportation (DOTr) said it is aiming to implement the first phase of the DBP, formerly known as the High Priority Bus System (HPBS), in the third or fourth quarter of 2027.
Richard Walter K. Villanueva, deputy project manager of the DBP at DOTr, said the long-delayed project would be conducted in phases, with implementation starting in the first phase.
Villanueva said the delay was caused by setbacks in land acquisition.
However, with the completion of land acquisition, they will be able to begin operations from Calinan to the central business district.
He added that three terminals will be built for the DBP, which means that the Davao City Overland Transport Terminal (DCOTT) will no longer be operational once the DBP is fully implemented.
Villanueva explained that passengers from other areas will have to disembark from provincial buses at the three terminals, where they will then be picked up by Davao buses.
The proposed terminals will be located in Bunawan for passengers coming from Davao del Norte and Davao de Oro; in Toril for passengers from General Santos City, Cotabato, and Digos City; and in Calinan for passengers coming from Cagayan de Oro and other areas.
“We are still in the land acquisition process, but for Calinan, we can already start because we will be beginning construction by this year for our depots and terminal,” he said during the Wednesday Habi at Kape, on March 18, 2026, at Abreeza Ayala Malls.
For the full implementation, he said that the department expects it to be by late 2028 or at the earliest in 2029.
It can be recalled that DOTr Secretary Vince Dizon, during his inspection of the construction site in Calinan District in July last year, said that President Ferdinand “Bongbong” Marcos Jr. had instructed him to fast-track the project.
“The president is really disappointed with the delays, kaya (that is why) he instructed us to fast-track this project. We need to stop making excuses and start solving problems, kasi game-changer itong project na ito (this project is a game-changer), and it will be a model system for the entire country,” he said on July 24, 2025.
Funding for the project
Earlier, the 21st Davao City Council approved an ordinance creating a trust fund for the DBP. The trust fund will serve as the City Government of Davao’s counterpart funding and was established following a request from the Davao Public Transport Modernization team, in line with the partnership with the Asian Development Bank (ADB), DOTr, and the City Government of Davao.
Under the ordinance, the trust fund must clearly state its purpose and remain consistent with existing laws.
The Davao Bus Project, a P76-billion initiative, aims to create a 672-kilometer integrated bus network with five depots, three terminals, a driver training academy, 1,074 stops, and a fleet of 380 electric and 720 Euro V diesel buses. The system will feature intelligent transport technology and automated fare collection.
Atty. Tristan Dwight Domingo, assistant city administrator and project manager of the Davao Bus Project, said in an earlier interview that the trust fund is a special account dedicated to the project. This includes assistance for affected drivers and operators, personnel requirements, and procurement needs.
He clarified that the entire P1.5 billion will not be deposited immediately but will instead be released in phases until 2030, depending on yearly funding requirements. Domingo said the fund will be sourced locally, noting that the city earns about P4 billion annually from its own revenues. The amount was set during the National Economic Development Authority (NEDA) Board deliberations.
The creation of the trust fund was prompted by the less than P2 billion endorsed by the Department of Budget and Management (DBM), instead of the P14 billion requested by the DOTr for the project.
The project is co-financed by the Asian Development Bank (ADB), the national government, and the City Government of Davao, which will contribute around P20 billion.
Initially set for a partial rollout by late 2024 and full operations by 2025, the timeline has been pushed back to 2027 and completion by 2028 or 2029 due to various challenges, including right-of-way delays and post-pandemic adjustments.
The Department of Transportation-Project Office for Davao (DOTr-Davao) previously said that the Bus Project is still moving forward, despite a very long delay with funding already secured. RGP