because fare levels are insufficient for transport operators to cover their costs. My estimate is that only 20 to 30 percent of public utility vehicles are running. Those still operating may stop soon. This will leave many Filipinos without any means of transportation.
In the days ahead, there will be many millions of Filipinos who will opt to walk or cycle to their destinations — some to save money, others to have a reliable way to move around, or both. They will need to be encouraged and protected. Regulations that prohibit or that discourage use of bicycles and light electric vehicles (e-bikes and e-trikes) on any road should be removed. Because there is a general lack of good sidewalks and bike lanes in our country, the highest priority should be given to the creation of networks of safe pathways for people walking and on bicycles and making these improvements permanent in all cities and municipalities.
This means, on major roads, taking the lane closest to the curb, installing protective barriers, improving the pavement and keeping the space free of all motor vehicles. Secondary roads can be either designated as “car-free” or transformed into “slow streets” with pedestrian and bicycle priority, traffic-calming infrastructure (e.g., speed tables, humps, lane narrowing) and low speed limits. Secure bicycle parking should be mandatory at every destination. These directives need to be pushed by the DOTr, MMDA, DPWH, DSHUD and DILG.
We need to view public transportation as an essential service, available in good times and bad. If public transport is not available, people will not be able to access jobs, markets and social services. These days, the government is understandably reluctant to authorize an increase in fares. We therefore support the recent announcement of the president that public transport operators will receive a subsidy (under a service contract) to cover the increase in fuel costs. Service contracting makes total sense. It should be institutionalized and become standard practice.
This approach of allowing operator to collect fares while providing a subsidy that is paid on a “per kilometer” basis (upon verified performance of the service) is called “net cost service contracting” and has been successfully implemented in many cities abroad. Under the contract, the parties agree on the availability and frequency of services, how the performance of the operator will be measured and how the transport operator will be paid. It has the potential to make our public transport services safe, predictable and passenger-friendly. Moreover, a fleet modernization and expansion program, if implemented in parallel with a long-term service contracting arrangement, will likely attract the interest of private sector financiers and banks.
In the coming weeks, the challenge will be to install the proper administrative systems and procedures so the service contracting program runs smoothly while enabling a reliable public transport service. The systems for tracking the movement and accomplishment of each vehicle, verifying that agreed services were delivered and releasing payment to operators on a timely basis will be crucial. Where there are capable and interested local government units (LGUs), they could serve as the contracting agency, handling the budget for the subsidy, monitoring the delivery of services and authorizing payment for completed services.
The funding for net cost service contracts in the coming months will probably need to come out of the 2026 and 2025 national budgets. Non-essential items in these budgets should be deferred or cancelled so that budget resources can be freed up for priority needs. Long gestation projects like the major railways can be deferred so that more money is available to sustain and preserve existing public transport services.
Every crisis provides an opportunity for transformation. The hope is that we can come out of this crisis with less reliance on private motor vehicles and many more Filipinos with access to safe, sustainable, low-cost and reliable travel options, with reduced dependence on fossil fuels.
Robert Y. Siy is a development economist, city and regional planner, and public transport advocate.
