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PUBLIC TRANSPORT GOVERNANCE IN THE PHILIPPINES

Beyond centralized franchising

Reforming public transport governance in the Philippines

Varsolo C. Sunio, Kris F. Abrigo, Sandy Mae A. Gaspay, Giselle M. Manuel,

Jose Alvaro E. Pacheco, Ma Flora May M. Cerna

30 September 2026 ·

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Executive summary

2

Today’s regime

Road-based public transport runs on a liberal–centralized model: private operators run buses and jeepneys under franchises issued by the national regulator (LTFRB); LGUs play a minimal role.

Liberal trade-off

Private provision keeps the fiscal burden low and mobilizes entrepreneurs — but produces profit-driven coverage gaps, fragmented networks and weak enforcement.

Centralized trade-off

National control brings policy stability, uniform standards and clear authority — but is rigid, blind to local context and leaves LGUs with little ownership.

Proposed regime

A coordinated–devolved regime in which LGUs progressively assume governance functions, grouped into four levels: foundational, developing, established, advanced.

Graduated pathways

Most LGUs operate at the foundational level today. Targets should differ by context — advanced for metropolitan areas, established for HUCs and near-metro provinces, developing for remote provinces.

National anchor

Not everything should devolve. DoTr remains the national coordinating authority — setting standards, ensuring interoperability and monitoring performance.

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Contents

3

01

Context and objectives

How road-based public transport is governed today, and what this study sets out to do

02

Conceptual framework

Two dimensions of governance regimes; functions and functional levels

03

Approach

Interviews and surveys across national agencies, LGUs and transport entities

04

Diagnosis

Strengths and failures of the liberal and centralized regimes

05

Design

A coordinated–devolved regime built on graduated functional levels

06

Implications

Matching regimes to context — and the national coordinating role

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

Road-based public transport in the Philippines is privately provided and nationally franchised, leaving local governments with little role

4

How service reaches passengers today

Private operators

Own and run buses and jeepneys

Certificate of Public Convenience

Franchise applied for by operators

LTFRB

National regulator grants franchise

Local service

Delivered with minimal LGU role

So what: the model suits fiscally constrained contexts, but it strains wherever transport problems are systemic.

1

Fragmented, uneven service

Operators chase profitable routes; low-demand areas see coverage gaps and poor coordination between independent operators.

2

Limited local responsiveness

Franchising authority sits with national agencies (LTFRB), leaving LGUs with little capacity to plan or manage transport in their own jurisdictions.

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

Jeepneys and buses — run largely by private operators — are the backbone of road-based public transport

Source: Photos — Philstar.com and news media; study team analysis

5

Jeepneys

Privately operated under franchises (CPCs) issued by the LTFRB

Buses

Also privately operated; government’s role is franchising and regulation

Who does what

Operators

Plan, finance and run services

LTFRB / DoTr

Franchise and regulate

LGUs

Minimal role

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

The study answers three questions — from diagnosing today’s regime to charting how LGUs can take on more

6

01

Diagnose

What are the strengths, limitations and contextual performance of the incumbent liberal–centralized regime?

02

Design

What functional and institutional framework would a coordinated–devolved regime, built on graduated levels of devolution, need?

03

Chart pathways

Which context-sensitive transition pathways let LGUs progressively assume functions based on readiness and scale?

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

Most research examines regulatory and operational arrangements; this study addresses the higher-level question of how authority is distributed

Source: Literature review; study team analysis

7

Level of analysis

Concept

Analytical focus

Illustrative examples

Primary emphasis

Macro (political economy)

Degree of state involvement

Mode of coordination between state and market; overarching institutional logic

Liberal vs. coordinated systems

This paper

Jurisdictional

Degree of devolution

Distribution of authority across levels of government

Centralized (national-led) vs. devolved (local-led)

This paper

Sectoral (institutional arrangements)

Regulatory regime

Rules and instruments governing service provision

Franchising, service contracting, competitive tendering

Most existing studies

Operational (service delivery)

Ownership and competition model

Organization of service provision and market structure

Public operation, PPPs, private monopoly, competition for the market

Most existing studies

Takeaway: this study centers on the macro and jurisdictional dimensions — how governance authority is distributed and coordinated.

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

Two dimensions define four governance regimes; the proposal moves the Philippines from liberal–centralized to coordinated–devolved

8

Liberal–Devolved

Market-driven; local authority

Coordinated–Devolved

The paper’s proposal

Liberal–Centralized

Incumbent Philippine regime

Coordinated–Centralized

e.g., national rail (DoTr)

Degree of government involvement

Liberal

Coordinated

Degree of devolution to local governments

Local

National

Reading the matrix

Mode of coordination

Liberal ↔ coordinated: how far the state actively manages the system rather than leaving it to the market

Distribution of authority

Centralized ↔ devolved: whether national agencies or local governments hold governance functions

Together they yield four ideal-type regimes.

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

Three concepts structure the framework: governance functions and levels, devolution, and coordination

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WHAT IT IS

WHY IT MATTERS HERE

Functions and functional levels

Governance functions are broad categories of public transport activities or responsibilities.

Functional levels group functions by increasing institutional complexity, coordination intensity and governance responsibility.

Devolution

The transfer or decentralization of specific responsibilities from the national government to local governments.

Core devolvable functions — route and network planning, fare-setting and franchising — are traditionally concentrated within DoTr and LTFRB.

Coordination

Implies the assumption of governance functions by government.

In a coordinated regime, government acts as an active “system manager”, taking on functions that require integration across operators, routes and jurisdictions.

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

ILLUSTRATIVE

Ten governance functions fall into two groups — those that can be devolved and those that require active coordination

10

Devolution-related functions

Authority moves from national agencies to LGUs

01

Route and network planning

02

Franchising and service authorization

03

Fare-setting and fare regulation

Coordination-related functions

Government takes an active system-manager role

04

Centralized fare collection and ticketing

05

Fleet acquisition and modernization

06

Public transport performance monitoring

07

Subsidy administration and financing

08

Service contracting

09

Integrated network management

10

Direct service operation

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

As governance functions grow more complex, they demand progressively greater devolution and coordination capacity

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Level 1

Foundational

Basic responsibilities that all LGUs are expected to perform.

Level 2

Developing

Additional responsibilities assumed once foundational functions are performed consistently and effectively.

Level 3

Established

More sustained coordination requiring technical expertise and institutional maturity.

Level 4

Advanced

High-order responsibilities requiring substantial administrative authority, financial resources and governance capacity.

Degree of devolution / coordination

Complexity of governance functions

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

We interviewed and surveyed 19 respondents across the governance chain — national agencies, LGUs and operators

Source: Stakeholder interviews and LGU survey (n = 19 respondents), January–May 2026; study team analysis

12

19

respondents across national agencies, local governments and transport service entities

National agencies

DoTr · LTFRB · DILG

3

Local government units

Provinces, cities and municipalities

14

Transport service entities

Transport cooperatives

2

How evidence was gathered

12

Semi-structured interviews

3 national agencies, 7 LGUs, 2 transport cooperatives

10

Google Forms survey responses

All from LGUs; 3 LGUs both interviewed and surveyed

3

Study objectives framing all instruments

Thematic analysis combined manual coding with AI-assisted pattern identification

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

The 14 LGU respondents span all three island groups and every level of local government

Source: LGU interviews and survey, January–May 2026; full respondent list in appendix

13

LGU respondents by type

Provinces

Bataan, Batangas, Mindoro, Cebu, Surigao del Sur

5

Highly urbanized cities

Pasig (metropolitan), Baguio, Iloilo

3

Component / capital cities

Batangas City, Legazpi

2

Municipalities

Presentación, Bautista, Subic, Buhi

4

LGU respondents by island group

Luzon 11

Visayas 2

1

Mindanao: 1

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

Respondents value the liberal regime mainly for easing the fiscal burden, but flag coverage gaps, fragmentation and weak enforcement

Source: Stakeholder interviews and LGU survey (n = 19 respondents), January–May 2026; study team analysis. n = number of respondents citing the theme

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Theme

Respondents citing (n)

Illustrative quote

Strength

Weakness

L-S1 Reduces fiscal burden on government / mobilizes private capital

12

“Because operators shoulder the costs of vehicles and day-to-day operations, the state is able to concentrate its resources on regulation, oversight, and policy development...” — LGU-07

L-S2 Standardized, replicable, easy-entry business model

8

“Proven business model, brand recognition, standardized systems and training, economies of scale...” — LGU-05

L-S3 Enables entrepreneurial / livelihood opportunity and market responsiveness

7

“...market responsiveness, entrepreneurial and livelihood opportunities.” — LGU-12

L-S4 Retains basic state oversight (fares, routes, compliance)

5

“...the state is able to concentrate its resources on regulation, oversight, and policy development rather than direct service provision.” — LGU-07

L-W1 Profit-driven allocation → coverage gaps in low-demand / rural areas

6

“Operators prioritize commercially viable routes, leaving low-demand or socially necessary areas underserved.” — LGU-07

L-W2 Fragmentation / lack of route, schedule and fare coordination

6

“Multiple small operators often lead to disorganized and overlapping routes, resulting in inefficiencies and traffic congestion.” — LGU-09

L-W3 Weak monitoring / enforcement capacity — allows deviation or “gaming”

6

“If a local government lacks the data infrastructure to track bus performance, the operators can ‘game the system.’” — LGU-04

L-W4 Poor risk allocation to operators / inadequate crisis-time support

2

“Poor risk allocation. Operators may reduce service, shorten routes.” — LGU-11

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

The centralized regime is valued most for insulating decisions from local politics; its weaknesses are rigidity and poor local fit

Source: Stakeholder interviews and LGU survey (n = 19 respondents), January–May 2026; study team analysis. n = number of respondents citing the theme

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Theme

Respondents citing (n)

Illustrative quote

Strength

Weakness

C-S1 Insulates decisions from local political pressure

10

“It's harder to politicize the process when the LGU itself isn't the one granting the franchise... that protects the LGU office from blame.” — LGU-07

C-S2 Uniform national standards / regulatory consistency

3

“Standardized regulatory policies, fare policies — since there is a national oversight.” — LGU-12

C-S3 Concentrated, clear institutional authority

2

“Franchising regime key strength is its power to prescribe and regulate routes of service under Sec. 5(a).” — LGU-02

C-W1 Bureaucratic rigidity / slow, inflexible approval processes

4

“At present, on-demand changes in the PUV route structure remain infeasible due to the absence of clear policies.” — LGU-07

C-W2 Weak responsiveness to local context (“one-size-fits-all”)

3

“One-size-fits-all, not so responsive to the local... for Lingayen/Dagupan, only certain peak hours are viable.” — TSE-02

C-W3 Limited local ownership / accountability; political constraints

2

“Political and governance constraints.” — LGU-02

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

The liberal regime offers three strengths: low fiscal burden, entrepreneurial capacity and operational simplicity

Source: Stakeholder interviews and LGU survey (n = 19 respondents), January–May 2026; study team analysis

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1

Low fiscal burden

Fleet acquisition, operations and maintenance costs are borne largely by private operators rather than the state — letting government extend services without significant capital outlays.

“By placing financial and operational risk primarily on private operators, the framework allows for the extension of network coverage and service availability without requiring the full fiscal burden to be borne by the public sector.”

— LGU-09

2

Entrepreneurial capacity

The regime mobilizes entrepreneurial capacity and livelihoods, drawing in private actors — from small-scale operators to larger firms — with a direct financial stake in service provision.

“By leveraging private sector participation and reducing the financial burden on government, it creates a framework that balances entrepreneurial initiative with regulatory oversight.”

— LGU-07

3

Operational simplicity

Standardized, replicable business models allow easy entry and operation, while the state retains formal authority over routes and fares.

“Franchising regime work[s] more effectively on operational simplicity where operators can be taught with simple processes.”

— LGU-02

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

But each strength has a flip side: coverage gaps, fragmented networks and weak enforcement

Source: Stakeholder interviews and LGU survey (n = 19 respondents), January–May 2026; study team analysis

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1

Profit-driven allocation

Operators prioritize commercially viable routes, leaving gaps in coverage and unreliable provision in low-demand or socially necessary areas.

“Operators prioritize commercially viable routes, leaving low-demand or socially necessary areas underserved.”

— LGU-07

“Demand is thin or dispersed in rural or peri-urban areas... public service obligations exceed commercial viability.”

— LGU-12

2

Fragmented coordination

Multiple independent operators function without effective integration, producing overlapping routes and inefficient service patterns.

“We do not have a reliable transportation and route system... no scheduled route, route numbering, or time-scheduled route and many advanced transportation systems.”

— LGU-02

3

Weak enforcement capacity

Operational simplicity is double-edged: weak monitoring, data gaps and enforcement challenges limit the state’s ability to ensure compliance with service standards.

“You can impose ten KPIs, but if you're not providing anything in return, there's no real incentive mechanism to support compliance.”

— NGA-02

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

In sum, the liberal regime succeeds on fiscal burden and participation but fails on equity, integration and oversight

Source: Stakeholder interviews and LGU survey (n = 19 respondents), January–May 2026; study team analysis

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Dimension

Definition

Strengths

Failures

Public fiscal burden

The extent to which government resources are required to finance and operate public transport services.

Low fiscal burden through private provision; minimal need for public capital investment; financial risk shifted to private operators.

Under-provision of socially necessary but unprofitable services; limited public capacity to intervene due to fiscal and policy constraints.

Economic participation and livelihood

The extent to which the system enables participation of private actors and generates economic opportunities.

Strong mobilization of entrepreneurial capacity; livelihood opportunities; motivated ownership.

Uneven operator capability; income instability; incentives may prioritize profit over service quality; potential oversupply on profitable routes.

Service equity (access and coverage)

The degree to which services are distributed fairly across geographic areas and population groups.

Service expansion in high-demand areas; broad operator participation increases availability where demand exists.

Profit-driven allocation leaves rural and low-demand areas underserved; service gaps, route abandonment and unreliable service.

System coordination and integration

The extent to which services function as a coherent and integrated network.

Potential for integration through franchising (route control, fare setting, unified systems).

Fragmented operations; no route rationalization, scheduling or fare integration; oversupply and undersupply across routes.

Governance simplicity and oversight

The extent to which the system operates through standardized, replicable arrangements with basic regulatory control.

Operational simplicity; ease of entry and replication; standardized business models; basic regulatory oversight.

Weak enforcement and monitoring; limited data systems; operators can “game” the system; planning gaps and institutional constraints.

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

Centralization brings policy stability, regulatory consistency and clear institutional authority

Source: Stakeholder interviews and LGU survey (n = 19 respondents), January–May 2026; study team analysis

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1

Policy stability

A consistent, long-term policy direction insulated from local patronage and short-term political interests — reducing the risk of politically driven route allocation.

“It's harder to politicize the process when the LGU itself isn't the one granting the franchise; it stays more technical.”

— LGU-07

“If your ally loses the next election, you could be in trouble — that's what happened in some areas in Cebu.”

— TSE-01

2

Regulatory consistency

Standardized fares, vehicle requirements and compliance mechanisms enable efficient rollout of nationwide programs such as modernization.

“It provides a standard nationwide — LTFRB doesn't just govern one province, it's nationwide.”

— TSE-02

“It's good that there's one regulator, since it creates a standard throughout the country.”

— TSE-02

3

Institutional authority

Authority concentrated in a single institution reduces fragmentation in decision-making and gives a clear mandate over franchising and policy.

“It's easier to hold it accountable through corporate structures rather than political ones.”

— NGA-02

“Mayors are the ones who end up answerable, not LTFRB.”

— LGU-07

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

Yet the same centralization makes the system rigid, unresponsive to local needs and weak on local ownership

Source: Stakeholder interviews and LGU survey (n = 19 respondents), January–May 2026; study team analysis

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1

Bureaucratic rigidity

Policies are stable but hard to adapt — changes to fares, routes or regulations need lengthy approvals, limiting responsiveness and constraining reform.

“Fuel prices keep increasing, so you'd only be asking for a one- or two-peso fare increase to recover costs — but it's very difficult to get government approval for that.”

— TSE-01

2

Weak local responsiveness

With minimal LGU participation, national agencies often lack detailed knowledge of local travel patterns, resulting in misaligned routes and outdated franchises.

“It often came down to who applied — without due consideration of local conditions.”

— LGU-12

“Small business transactions shouldn't need approval from a very high or distant office.”

— TSE-02

3

Limited local ownership

LGUs have little incentive or authority to actively manage or improve transport services within their jurisdictions.

“We're a bit puzzled by the idea that LGUs should shoulder this function when there's no clear basis showing it should be the LGU doing it.”

— LGU-12

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

In sum, the centralized regime delivers stability and consistency at the cost of adaptability and local fit

Source: Stakeholder interviews and LGU survey (n = 19 respondents), January–May 2026; study team analysis

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Dimension

Definition

Strengths

Failures

Policy stability

The extent to which transport policies are consistent, predictable and insulated from short-term political influence.

Stable policy direction insulated from local political pressures; continuity in long-term planning; predictable regulatory environment.

Limited local ownership and accountability; reduced adaptability to local political and development priorities.

Regulatory consistency

The degree to which rules, standards and regulatory practices are applied uniformly across jurisdictions.

Uniform standards in fares, vehicle requirements and compliance; consistent regulatory application across regions.

Weak responsiveness of regulations to local conditions; limited sensitivity to geographic and demand variations.

Institutional authority and control

The concentration of governance functions and decision-making power within a central authority.

Clear mandate and concentration of authority within a single institution; reduced fragmentation in decision-making.

Bureaucratic rigidity and slow decision-making; lengthy approval processes; limited flexibility for innovation and reform.

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

A coordinated–devolved regime can keep central oversight while enabling local responsiveness — we build it in three steps

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Step 1 · Classify functions

Group each devolution- and coordination-related function into one of four functional levels — foundational, developing, established or advanced.

→ Page 24

Step 2 · Align by jurisdiction

Match functional levels to jurisdiction type — metropolitan areas, highly urbanized cities and provinces — based on scale and capacity.

→ Pages 25–26

Step 3 · Test against evidence

Show how LGU respondents themselves classified each function, grounding the framework in real-world capacity and readiness.

→ Page 23

Design principle: devolution is graduated — LGUs assume functions progressively as readiness and scale allow, not all at once.

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

LGUs see planning as foundational, while direct operation, subsidies, fleet procurement and full contracting are advanced

Source: LGU survey (14 LGUs; not all answered every item). n = LGUs classifying the function; modal = most frequent response

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Function

Foundational

Developing

Established

Advanced

n

Modal classification

Transport planning

8

1

0

0

9

Foundational

Land-use planning

9

0

0

0

9

Foundational

Fare-setting

2

5

1

1

9

Developing

Network-wide monitoring of PUV performance

2

3

2

2

9

Developing

Partial contracting

0

4

2

2

8

Developing

Franchising

2

2

4

1

9

Established

Centralized fare collection

0

4

4

1

9

Established

PUV fleet procurement and renewal (leasing)

0

1

2

5

8

Advanced

Subsidy provision

1

0

3

5

9

Advanced

Direct operation

0

0

0

8

8

Advanced

Full network-wide service contracting

0

0

2

6

8

Advanced

Darker cells = more respondents choosing that level. Rows ordered by modal classification.

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

Ten functions map onto four functional levels, each building on the capabilities of the one below

24

Level

Function

Rationale for classification

Foundational

Transport and land-use planning

Core statutory responsibility of LGUs; already institutionalized through LPTRP requirements and necessary for all higher-order functions.

Network-wide monitoring of PUV performance

Technically accessible using existing tools (e.g., GPS); supports evidence-based planning and regulation.

Subsidy provision

Can be mobilized during emergencies or service gaps; requires limited institutional complexity but fiscal flexibility.

Developing

Fare-setting and adjustment

Requires analytical capacity (cost structures, demand) and regulatory judgment; builds on planning and monitoring functions.

Partial service contracting

Introduces contractual governance on selected routes; requires procurement, performance monitoring and enforcement capabilities.

Established

Franchising authority or delegated franchising

Entails regulatory control over market entry and service design; requires legal authority, institutional maturity and enforcement capacity.

Direct service operation

Involves asset ownership and operational management; feasible only for resource-capable LGUs.

Centralized fare collection

Requires system integration across operators through automatic fare collection systems (AFCS); involves institutional and technical complexity (e.g., clearinghouses).

Advanced

Full network-wide service contracting (gross contracts)

System-level transformation requiring sustained funding, strong contract management and integrated planning.

Fleet procurement and leasing

Capital-intensive function involving financial structuring, asset management and long-term risk allocation.

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

Metropolitan LGUs aim for advanced functions, HUCs for established and provinces for developing — and “realistic” tracks “ideal” closely

Source: LGU survey; n = 13 of 14 LGU respondents answered this item. Ideal = level an LGU should aim for; realistic = achievable given current capacity

25

Key takeaways

10 of 13

see advanced as the ideal for metropolitan areas

7 of 13

see established as realistic for HUCs

7 of 13

see developing as the ideal for provinces

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

AUTHORS’ ASSESSMENT

Most LGUs sit at the foundational level today, but the right target level differs sharply by context

Source: Study team analysis based on LGU survey and interviews; see methodological note on next page

26

Foundational

Developing

Established

Advanced

Levels to climb

Province far from metro area

+1

Province near metro area

+2

Highly urbanized city

+2

Metropolitan area

+3

Current level

Target level

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

Methodological note: three clarifications on how current and target levels were derived

27

1

Current levels are the authors’ interpretation

The current functional level for each jurisdiction type (filled circles) reflects the authors’ interpretive assessment of prevailing practice — not a direct empirical finding. Respondents were not asked to characterize their own LGU’s present level in these terms.

2

Provincial subtypes are an analytical refinement

The survey and interview data behind the expected (ideal) level treated “province” as a single category. The near-metro / far-from-metro split is the authors’ refinement to capture variation in system complexity — not a distinction respondents were asked to draw.

3

Near-metro province figures are an extension, not a finding

Survey- and interview-derived expectations correspond to the “province far from a metropolitan area” case. The near-metro case extends that finding using the same logic, but was not independently tested against respondent data.

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

Not everything should devolve: one country can run several regimes, matched to each context’s size and complexity

28

CONTEXT

RECOMMENDED REGIME

Metropolitan areas

Metro Manila, Cebu, Davao

Coordinated–Devolved

Highly urbanized cities

Coordinated–Devolved

Provinces near metro areas

Coordinated–Devolved

Provinces, low density

Liberal–Devolved

Inter-provincial / regional corridors

Liberal–Centralized

National rail and strategic infrastructure

Coordinated–Centralized

Across all regimes, a national coordinating authority (DoTr) still sets standards, ensures interoperability and coordinates.

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CONTEXT · FRAMEWORK · APPROACH · DIAGNOSIS · DESIGN · IMPLICATIONS

Devolution needs a national anchor: DoTr retains five system-manager roles even in a devolved system

29

DoTr

National coordinating authority

Department of Transportation

1

Sets national policies, standards and guidelines

2

Defines roles and allocation of authority

3

Ensures coherence, interoperability and system integration

4

Monitors and evaluates system performance

5

Coordinates across levels of government and regimes

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Thank you

Questions and discussion

Varsolo C. Sunio, Kris F. Abrigo, Sandy Mae A. Gaspay, Giselle M. Manuel,

Jose Alvaro E. Pacheco, Ma Flora May M. Cerna

“Beyond Centralized Franchising: Reforming Public Transport Governance in the Philippines”

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Appendix: respondents by sector and mode of participation (n = 19)

Source: Stakeholder interviews and LGU survey (n = 19 respondents), January–May 2026; study team analysis

31

Sector

Respondent

Interview

Survey response

National government agencies

Department of Transportation (DoTr)

Feb 12, 2026

–

Land Transportation Franchising and Regulatory Board (LTFRB)

Jan 20, 2026

–

Department of the Interior and Local Government (DILG)

May 18, 2026

–

Local government units

Bataan Province

Feb 3, 2026

✓

Batangas Province

Mar 5, 2026

–

Mindoro Province

–

Feb 12, 2026

Cebu Province

Jan 13, 2026

–

Surigao del Sur Province

Feb 20, 2026

–

Pasig City (metropolitan HUC)

Mar 6, 2026

✓

Baguio City (non-metropolitan HUC)

Mar 16, 2026

✓

Iloilo City (non-metropolitan HUC)

Jan 29, 2026

–

Batangas City (capital city / non-HUC)

–

Mar 1, 2026

Legazpi, Albay (capital city)

–

Mar 5, 2026

Presentación, Camarines Sur (municipality)

–

Mar 4, 2026

Bautista, Pangasinan (municipality)

–

Mar 4, 2026

Subic, Zambales (municipality)

–

Mar 5, 2026

Buhi, Camarines Sur (municipality)

–

Mar 3, 2026

Transport service entities

South Metro Transport Cooperative

Apr 15, 2026

–

Lingayen-Dagupan Transport Cooperative

Apr 28, 2026

–

✓ = survey submitted alongside interview; dates shown for interview or standalone survey submission