Towards a greater role for local government units as public transport service providers in the Philippines

In the Philippines, public transport services are predominantly operated by private entities under government-issued franchises, with minimal government intervention beyond franchise regulation. This market-driven approach has resulted in inefficiencies, such as on-street competition, service interruptions, and the use of polluting vehicles, highlighting the need for reform. This paper challenges the prevailing view of public transport as a commercial enterprise and advocates for its recognition as a public service. Greater involvement from national and local governments, including enforcing service standards and providing subsidies, is essential to ensure equitable and reliable transport access. Through interviews with eight local government units (LGUs), we developed five models illustrating potential LGU roles in public transport provision that may be applicable in the context of the Philippines. These models are: (1) Co-implementation of Service Contracting; (2) LGU-Operated or Tendered; (3) Fare Collection Oversight; (4) Local Economic Enterprise (LEE); and (5) Public Transit Authority (PTA). These models were evaluated for feasibility and stakeholder support by representatives from five transport service entities (TSEs), one national agency, and four LGUs. Results reveal contrasting views: while the government favors Options 2 and 4, TSEs find Option 1 most viable but criticize Options 2-5 for creating competition and raising governance concerns. The findings underscore the need for collaborative approaches to address stakeholder misalignments and ensure sustainable public transport reform.