The Davao City Government has officially moved to establish a dedicated trust fund for the massive Davao Bus Project, marking a significant step forward in the implementation of the ₱76-billion transportation initiative.
Financial Strategy for Major Infrastructure
During a media interview on Tuesday, November 12, 2025, Atty. Tristan Dwight Domingo, the assistant city administrator and project manager for the Davao Bus Project, revealed that the city has formally expressed its intent to create a special trust fund account. This fund will serve as Davao City's counterpart funding mechanism for the ambitious project formerly known as the Davao High Priority Bus System (HPBS).
The city has committed ₱1.5 billion as its local counterpart funding, though Domingo clarified that the full amount won't be deposited immediately upon the trust fund's establishment. Instead, the funding will be released in phases, with the city allocating specific amounts annually until 2030, depending on the project's evolving requirements.
"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 explained during his appearance at the Sangguniang Panlungsod.
Funding Security Amid National Uncertainty
The trust fund proposal comes as questions linger about the national government's financial commitment to the project. Domingo disclosed that while the Department of Transportation initially requested ₱14 billion for inclusion in the National Expenditure Program, the version submitted by the Department of Budget and Management to Congress reflected less than ₱2 billion.
"With limited funds, the project's progress will be severely hampered," Domingo acknowledged, emphasizing the critical need for the local trust fund.
The assistant city administrator highlighted that having a trust fund ready ensures the city can immediately provide its counterpart when required. "If the national government cannot fully commit the funds required for a certain year, at least the city will be ready. It will be easier for us to release our share when the project calls for it," he stated.
Domingo confirmed that the ₱1.5 billion counterpart figure was determined during National Economic and Development Authority Board deliberations. The trust fund will be locally sourced, drawing from Davao City's annual local revenue generation of approximately ₱4 billion.
Project Timeline and Current Status
Despite funding challenges, the Department of Transportation maintains that the Davao Bus Project remains on track. Road right-of-way acquisition is currently ongoing, with operations targeted to begin by 2027.
Former Transportation Secretary Vince Dizon reported that approximately 60 percent of the required land has been secured since work commenced in March, with efforts continuing to complete the remaining 40 percent by year-end. Dizon acknowledged a two-year delay in the project due to logistical challenges but noted that President Ferdinand Marcos Jr. has directed agencies to fast-track all major infrastructure projects.
Meanwhile, DOTr Project Evaluation Officer Richard Villanueva indicated that while construction was delayed by eight months, progress continues on key components including bus stops, depots, and the Bus Driving Academy.
The comprehensive Davao Bus Project envisions a 672-kilometer integrated bus network featuring five depots, three terminals, a driver training academy, 1,074 bus stops, and a mixed fleet of 380 electric and 720 Euro-V diesel buses. The system will also incorporate intelligent transport systems and automated fare collection technology.
The project is co-financed by the Asian Development Bank, the national government, and the Davao City Government, with the city's total contribution estimated at around ₱20 billion. Originally scheduled for partial rollout in late 2024 and full operations by 2025, the project timeline has been adjusted to 2027 due to right-of-way delays and post-pandemic adjustments.
Domingo expressed optimism that the trust fund proposal would be approved before the year ends, noting that he had already submitted the proposal to the Committee on Finance, chaired by Councilor Danilo Dayanghirang, several weeks earlier. The establishment of the trust fund will require a separate ordinance, which the city government plans to present to the council in the coming weeks.
