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DOTr, Cebu Launch First Local-Led Service Contracting Program for Public Transport

  • Arwen Gutierrez
  • Business & Finance, Travel
  • June 28, 2026

The Department of Transportation (DOTr) has partnered with the Cebu Provincial Government to launch the “Tabang Pangbyahe Program,” the country’s first local-led service contracting initiative aimed at supporting public transport operators, drivers, and commuters.

Under the program, the DOTr will provide P20 million in funding support through an agreement with the Cebu Provincial Government and the Land Transportation Franchising and Regulatory Board (LTFRB).

The initiative will be implemented through the Net Service Contracting modality, which incentivizes participating bus operators to serve underserved routes and help ensure adequate public transportation services.

The program follows the directive of President Ferdinand Marcos Jr. for the DOTr to help public utility vehicle operators and drivers maintain steady income for their families amid the volatile situation in the Middle East, which has affected the transport sector.

Transportation Secretary Giovanni Lopez said the program will also help address commuter demand, particularly with the opening of classes.

“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,” Lopez said.

Under the initiative, buses will serve routes identified as underserved, with passengers allowed to board and alight only at designated stops based on a study conducted by the Provincial Planning and Development Office.

Participating bus operators must also comply with standards set by the Cebu provincial government. These include the installation of GPS devices linked to a local command center for real-time monitoring, cleanliness and sanitation requirements, the use of Persons with Disability (PWD)-friendly low-floor buses, properly maintained air-conditioning systems, and compliance with the prescribed 60-passenger, no-standing policy.

Cebu Governor Pamela Baricuatro welcomed the partnership, saying it would help provide more dependable and accessible transport services across the province.

“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,” Baricuatro said.

Once the funds are released to the provincial government, eligible bus operators may begin processing their applications to join the program.

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