AN OFFICIAL from the Davao City Government said they have formally expressed their intent to request the creation of a trust fund for the Davao Bus Project, formerly known as the Davao High Priority Bus System (HPBS).
Atty. Tristan Dwight Domingo, assistant city administrator and project manager of the Davao Bus Project, explained that the trust fund is a special account under the city government that will serve as the city’s counterpart fund for the project.
Domingo said Davao City has committed ₱1.5 billion as its counterpart funding. However, the establishment of the trust fund by the end of the year would not require the city to immediately deposit the full amount, as the funding will be released in phases.
He explained that once the trust fund is created, the city will allocate a certain amount each year until 2030, depending on the project’s funding requirements, until the total ₱1.5 billion commitment is fulfilled.
“This is the phasing or staggered appropriation of that fund — putting it into the trust fund between today, maybe next year, until the project is fully implemented,” Domingo said during a media interview on Tuesday, November 12, 2025, at the Sangguniang Panlungsod.
He added that the trust fund would be locally sourced, noting that Davao City generates around ₱4 billion annually from its own local revenues.
Domingo said specific guidelines will govern the use of the fund. The money may only be used for components of the Davao Bus Project, including financial or non-financial assistance for affected operators and drivers, personnel salaries, and procurement of office equipment—provided these are directly related to the project.
He noted that the ₱1.5 billion counterpart fund was determined during the National Economic and Development Authority (NEDA) Board deliberations.
On the same day, during the second reading of the city’s annual budget, Domingo informed the 21st City Council that he had submitted the trust fund proposal to the Committee on Finance, chaired by Councilor Danilo Dayanghirang, several weeks earlier.
He also mentioned that while the trust fund has not yet been created, an allocation for the Davao Bus Project already exists in the approved annual budget.
Domingo clarified that establishing the trust fund would require a separate ordinance, which they plan to present to the council before the year ends. He expressed optimism that the proposal would be approved within the year.
Funding challenges
Domingo admitted that the provision for the national government’s counterpart remains uncertain. He said the Department of Transportation (DOTr) initially requested ₱14 billion for the project’s inclusion in the National Expenditure Program, but the version submitted by the Department of Budget and Management (DBM) to Congress reflected less than ₱2 billion.
“With limited funds, the project’s progress will be severely hampered,” Domingo said.
He added that having a trust fund ready ensures that the city can immediately provide its counterpart when needed.
“If the national government cannot fully commit the funds required for a certain year, at least the city will be ready. It will be easier for us to release our share when the project calls for it,” he said.
He explained that with a trust fund in place, the city would not face difficulties once it is required to contribute—for example, ₱300 million—as its counterpart. “We could easily access the trust fund when needed,” Domingo added.
Project remains on track
Despite funding constraints, the DOTr said the Davao Bus Project remains on track, with road right-of-way (RROW) acquisition ongoing and operations targeted by 2027.
Former Transportation Secretary Vince Dizon earlier reported that about 60 percent of the required land had been secured since work began in March, with efforts continuing to complete the remaining 40 percent by year-end.
Dizon acknowledged a two-year delay in the project due to logistical challenges but noted that President Ferdinand Marcos Jr. has directed agencies to fast-track all major infrastructure projects.
Meanwhile, DOTr Project Evaluation Officer Richard Villanueva said that while construction was delayed by eight months, progress is ongoing in key components such as bus stops, depots, and the Bus Driving Academy.
A flagship transport model
The Davao Bus Project, a ₱76-billion initiative, aims to establish a 672-kilometer integrated bus network with five depots, three terminals, a driver training academy, 1,074 bus stops, and a fleet of 380 electric and 720 Euro-V diesel buses. It will also feature intelligent transport systems and automated fare collection.
The project is co-financed by the Asian Development Bank (ADB), the national government, and the Davao City Government, which is contributing around ₱20 billion.
Initially slated for partial rollout in late 2024 and full operations by 2025, the project timeline has been moved to 2027 due to right-of-way delays and post-pandemic adjustments. RGP