Cebu has become the first province in the country to roll out a government-led bus service contracting program, with the Department of Transportation (DOTr) committing P20 million to incentivize operators to serve underserved routes while improving public transport services.

The "Tabang Pangbyahe" Service Contracting Program, launched in partnership with the Cebu Provincial Government and the Land Transportation Franchising and Regulatory Board, will use the Net Service Contracting modality. 

Under this modality, bus operators receive incentives for meeting service standards instead of relying solely on passenger fares.

The DOTr said Saturday that the initiative helps public utility vehicle operators and drivers maintain stable incomes amid the impact of the volatile situation in the Middle East on the transport sector, while ensuring adequate public transportation during the opening of classes.

“This program is a good example of how such partnerships can help improve public transport services for commuters,” Transportation Acting Secretary Giovanni Lopez said.

“Not only will operators and drivers benefit from this program of our President, but commuters will also benefit because we can ensure that there will be enough public transport vehicles on the road, especially now that students are returning to school,” he added. 

The P20-million fund will be released to the Cebu Provincial Government, after which eligible bus operators may begin applying to participate in the program.

Participating operators will be encouraged to serve routes identified by the Provincial Planning and Development Office as underserved. 

In exchange, they must comply with service standards set by the provincial government, including installing GPS devices linked to a local command center for real-time monitoring, deploying PWD-friendly low-floor buses, maintaining clean and air-conditioned units, and observing a 60-passenger no-standing policy.

"Through this initiative, we are helping advance our shared goal of providing safer, more reliable, and more accessible transportation services for the people of Cebu," Undersecretary Senior Undersecretary for Road Transport and Infrastructure Mark Steven Pastor said.

Cebu Governor Pamela Baricuatro said the program demonstrates how national and local governments can work together to improve mobility.

“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.