Delays and ‘zero-budget’ programs prompt scrutiny of transport sector allocations

MANILA — Budgetary shortfalls in the Department of Transportation (DOTr) will cause significant delays in major railway infrastructure projects and leave critical commuting programs without funding, lawmakers revealed during the House of Representatives budget deliberations.

House Committee on Appropriations Vice Chairperson and DOTr budget sponsor Rep. Edwin Ongchuan detailed the department’s financial constraints during interpellations led by Akbayan Party-list Rep. Percival “Perci” Cendaña.

Right-of-way (ROW) acquisition funding constraints are projected to delay the target completion dates for major rail networks by two years.

“May karagdagang dalawang taon na delay ang magiging epekto po nito,” Cendana pointed out.

Ongchuan stated that the National Expenditure Program (NEP) allocates P2.7 billion for ROW acquisition, strictly dedicated to the North-South Commuter Railway (NSCR). However, the total required amount for 2027 reaches P30 billion.

“Ang total na kailangan po for 2027 is P30 billion,” Ongchuan said.

He confirmed that the shortfall affects both the NSCR and the Metro Manila Subway Project, leading the DOTr to request additional funds. Meanwhile, ROW issues for MRT-7 have already been resolved.

When asked about the operational impact of the funding gap, Ongchuan noted that a minimum two-year delay is expected unless additional funds are provided.

“For North-South Commuter Railway, from 2033 to 2035. For the Metro Subway, from 2031 to 2033,” Ongchuan explained.

Cendana expressed concern over the delayed target dates, noting the impact on commuters across Central Luzon, Metro Manila, and Southern Tagalog.

“Nakalulungkot pong balita na kailangan pong maghirap, magtiis na ating mga kababayan ng dagdag pang dalawang taon dahil sa kakulangan po ng allocation for right-of-way acquisition,” Cendaña remarked.

Cendaña flagged the complete absence of funding for three major public transportation initiatives in the proposed budget: the EDSA Busway System, the Service Contracting Program (SCP), and the Fuel Subsidy Program.

“Ito pong triple zero na ito ay triple zero na parang sampal sa ating mga mananakay na publiko. Zeroing out the EDSA carousel program, the service contracting program, the fuel subsidy program would mean zero support for commuters in our transport sector,” Cendana stated.

The EDSA Busway System, despite serving millions of passengers, received zero funding under the proposed NEP.

Ongchuan noted that the DOTr has formally requested the Committee on Appropriations to restore P1.7 billion for the project. Cendaña questioned why the executive budget omitted the funding despite statements of support from Malacañang.

“Sumulat po ang DOTR na maibalik po ang P1.7 billion na pondo dito po sa Committee on Appropriations,” Ongchuan said.

“Pati po ang Malacañang mismo nagsabing suportado nito ang pagpopondo sa EDSA Carousel for 2027,” Cendaña said.

For the Service Contracting Program, Ongchuan confirmed that zero allocation for the SCP negatively impacts three main sectors: public utility vehicle (PUV) operators, drivers, and commuters.

Cendaña emphasized, “Napakahalaga po nitong SCP program para po sa tinatawag nating siguradong kita para sa mga tsuper at operator at siguradong sakay po para sa ating mga kababayang commuter.”

For the Fuel Subsidy Program, unfunded fuel subsidies leave PUV drivers and operators vulnerable to rising oil prices.

Ongchuan explained that without a government subsidy to absorb fuel price increases, operators may be forced to seek fare increases, directly affecting the commuting public.

“Dahil po zero ang pondo ay mapipilitan pong humingi ng tulong ang operators at mga public utility drivers para po sa karagdagang pamasahe dito po sa kanilang operation. At pag nag-increase po ang pamasahe, natural po maaapektuhan po ang driving public,” he said.

Addressing recent statements from bus groups regarding the Land Transportation Franchising and Regulatory Board’s (LTFRB) suspension of fare adjustment orders, Ongchuan shared the DOTr’s ongoing interventions.

To assist operators coping with high operational expenses, the DOTr is lobbying for budget allocations to provide a monthly amortization subsidy or financial support of approximately P20,000 per month per modern unit.

For provincial bus operators, the DOTr is conducting dialogues and currently granting free toll fees on expressways.

“Patuloy po ang ongoing po ang constant dialogue sa mga provincial buses. Sa kasalukuyan po ay [may] binigay po ang DOTR na free toll fee sa mga provincial buses sa expressway po,” Ongchuan said.

Additionally, the DOTr is coordinating a P450 million fuel discount program in partnership with the Department of Energy, offering a discount of roughly P12 per liter.

“Kasulukuyang po tinatalakay dito sa dialogo ng DOTR at ng mga PUV operators na maisama po sa 450 million fuel discount po na programa ng DOTR na more or less mga 12 pesos po per liter,” said Ongchuan.

However, funding for similar fuel subsidies beyond the current year remains dependent on congressional budget adjustments.