Assistant City Administrator and Davao Bus Project Manager Atty. Tristan Dwight Domingo formally proposed to the Davao City Council on Tuesday the creation of a dedicated trust fund to cover the city’s P1.5-billion counterpart for the P73.4-billion Davao Public Transport Modernization Project—one of Mindanao’s largest infrastructure undertakings.
Domingo said the trust fund will be established as a special account under the name of the City Government of Davao, earmarked solely for the city’s financial obligation to the landmark transport initiative.
“We manifested our intention before the City Council to create a trust fund for the Davao Public Transport Modernization Project, where the city’s counterpart fund will be placed,” Domingo told reporters.
He clarified that the city will not be required to deposit the full P1.5 billion upfront. Instead, the fund will be built up gradually through staggered annual appropriations until 2030, aligned with the project’s implementation timeline and funding requirements.
“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. This way, we ensure readiness without straining the city’s resources all at once,” Domingo explained.
He emphasized that the trust fund will enable the city to respond promptly when counterpart funding is needed, avoiding delays in implementation.
Domingo noted that Davao City generates over P4 billion annually in locally sourced revenues, a portion of which can be allocated to the trust fund. Establishing it early, he said, will help the city stay ahead of financing requirements and mitigate risks tied to national budget constraints.
“Being a trust fund, it is exclusively for the Davao Bus Project. We intend to draw from our local revenues—hopefully even more by next year—and contribute incrementally until we reach the P1.5-billion target by 2030,” he said.
The Department of Transportation (DOTr) has allocated approximately P2 billion for the Davao Bus Project in 2026, significantly lower than the P14 to P17 billion originally requested. The project will be financed through a mix of sources: roughly 60% from an Asian Development Bank (ADB) loan, with the remainder coming from the DOTr and the city government.
“Given the limited national allocation, the city must be ready. Having a trust fund ensures that even if national support falls short, we can sustain the project’s progress,” Domingo said.
He added that the trust fund will be governed by strict guidelines, ensuring that all expenditures are directly tied to the Davao Bus Project. These include financial and non-financial assistance to affected transport operators and drivers, salaries of project personnel, and procurement of essential equipment and services.
“Under the guidelines, only components of the Davao Bus Project can be funded—such as support for affected drivers and operators, staff salaries, and equipment like computers and surveying instruments needed by the project office,” he said.
Domingo said the creation of the trust fund will require a new ordinance, which the City Council is expected to deliberate on in the coming weeks.
“This is a long-term commitment for the city. The trust fund will ensure we are financially prepared to move the Davao Bus Project forward,” he said.
Formally known as the Davao Public Transport Modernization Project (DPTMP), the initiative aims to establish a modern, efficient, and environmentally sustainable public transport system across Davao City. It includes the development of a 672-kilometer bus network and the phased replacement of traditional jeepneys with electric, air-conditioned buses—offering Dabawenyos a safer, more convenient, and reliable mass transit experience.
