THE Land Transportation Franchising and Regulatory Board-Davao Region (LTFRB-Davao) said that the public transport modernization program in the region continues to move forward despite delays caused by rising fuel prices.
The initiative, which aims to replace traditional public utility vehicles with modernized units, has been affected by the increase in fuel and oil prices. These economic challenges slowed down the expansion of modernized fleets, even as transport groups and cooperatives initially showed strong interest in upgrading their units.
Nonito Llanos III, LTFRB-Davao regional director, said that the program was gaining momentum before the fuel price hikes.
“Actually, before this happened, kaning mga increase nindot man unta naa lay mga coops na gusto magdugang og modernized unit,” he said in a media interview on April 13, 2026, at SM City Davao.
(Actually, before the increase happened, it was going well because there were cooperatives that wanted to add more modernized units)
Despite these setbacks, data show that the region has made significant progress in consolidation. Reports indicate that the Public Utility Vehicle (PUV) consolidation rate has reached 88 percent as of January 2026, increasing from 86 percent in previous years and reflecting stronger compliance among operators outside Davao City.
Llanos also emphasized the financial reliability of transport cooperatives in the region.
“Sa tinuod lang, ang tanan coops sa atoa nga nag-modernize sa Davao Region walay mga past due sa mga bangko, so humot kay ta sa bangko, wala jud tay problema,” he said.
(In truth, all cooperatives in the Davao Region that have modernized have no past dues with banks, so we have a good reputation and no problems.)
However, the program’s reliance on national funding has created additional challenges. Government financial institutions, such as the Land Bank of the Philippines and the Development Bank of the Philippines, provide loans under a nationwide system, meaning delays in other regions can affect loan releases locally. Because of this, some operators have turned to private banks, even if repayment terms are shorter at five years compared to seven years in government banks.
In terms of implementation, only around 90 modernized units are currently operating in the region, excluding Davao City, which follows a separate transport modernization system. Still, these developments have contributed to improved commuter access and reduced congestion in some areas, benefiting over one million passengers across the region.
Llanos expressed confidence that the modernization targets remain achievable despite the ongoing crisis, adding that discussions are ongoing with financial institutions to allow deferred payments.
“Nakig-istorya na gani among kadagkuan sa Landbank ug sa DBP nga unta ihunong lang sa ang payment until such time na mag-stabilize tanan,” he said.
(Our leaders have already talked with Landbank and DBP to allow deferred payments until everything stabilizes.)
He stressed that if these measures are implemented, the modernization program will regain momentum. Llanos concluded that modernization should not be halted but strengthened to ensure a more efficient, reliable, and sustainable public transportation system in the Davao Region. JAIMA M. PANDICAL/DORSU, INTERN
