THE 21st Davao City Council approved on third and final reading an ordinance creating a trust fund for the Davao Bus Project, formerly known as the High Priority Bus System (HPBS), which will serve as the City Government of Davao’s counterpart funding, on Tuesday, December 2, 2025.
Councilor Danilo Dayanghirang, chairperson of the Committee on Finance, Ways and Means, and Appropriations, proposed the ordinance, saying it had been endorsed to the committee and discussed in a committee hearing upon the request of the Davao Public Transport Modernization team in line with the partnership of the Asian Development Bank (ADB), the Department of Transportation (DOTr), and the City Government of Davao.
“Trust fund, the main purpose is for specific purpose of which a certain amount is set aside to be deposited separate from the general fund and this is provided under a special fund provision,” he said during the second reading of the ordinance on November 26, 2025
Under the ordinance, the trust fund must clearly state the purpose for which it is created and must remain consistent with existing laws.
Dayanghirang also said the trust fund may be sourced from the LGU’s appropriations, and the DOTr may also deposit its counterpart for the project.
He added that the disbursement of the trust fund will be subject to the usual accounting and auditing rules and must be consistent with Section 3 of the ordinance, which states that the trust fund will be used for the city’s transport modernization.
For transparency, Dayanghirang said the city treasurer will submit a semiannual report to the Sangguniang Panlungsod.
Special account dedicated for the Davao Bus Project
In an earlier interview with Atty. Tristan Dwight Domingo, assistant city administrator and project manager of the Davao Bus Project, said that the trust fund is a special account dedicated to the project and this includes assistance for affected drivers and operators, personnel requirements, and procurement needs.
He clarified that the entire ₱1.5 billion will not be deposited immediately but will be done in phases until 2030, depending on yearly funding requirements. Domingo said the fund will be sourced locally, noting that the city earns about ₱4 billion annually from its own revenues. The amount was set during the National Economic Development Authority (Neda) Board deliberations.
“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 November 12, 2025.
Challenges in funding
The DOTr requested ₱14 billion for the project, but the DBM endorsed less than ₱2 billion, raising concerns about delays.
Domingo said the trust fund will ensure the city can promptly release its share even if national funds fall short.
Despite financial challenges, the DOTr reports that the project remains on track, with right-of-way acquisition ongoing and operations targeted for 2027. Former Transportation Secretary Vince Dizon reported that 60 percent of the required land has been acquired, while work continues on bus stops, depots, and the Bus Driving Academy, though construction saw an eight-month delay.
The ₱76-billion Davao Bus Project aims to build a 672-km integrated bus network with five depots, three terminals, over 1,000 bus stops, a driver training academy, and a fleet of 380 electric and 720 Euro-V diesel buses, with modern systems such as automated fare collection. The project is co-financed by the ADB, the national government, and Davao City, which is contributing about ₱20 billion. RGP
