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Biyahenihan for a Better Normal: Investing in Philippine Public Transport in

2022 and Beyond (Move As One's 2022 Budget Proposal)

Preprint · March 2021

DOI: 10.13140/RG.2.2.29135.41128

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 Biyahenihan for a Better Normal:
Investing in Philippine Public Transport in 2022 and Beyond

Inputs of the Move As One Coalition to the 2022 National Budget as of 18 March 2021
Detailed Budget: bit.ly/MoveAsOneBudget2022
Statement: http://bit.ly/MoveAsOneBudgetStatement2022

Contents
I. Executive summary 2

II. The Coalition’s detailed comments 3

A. A better spending mix for a better normal 3
B. The need to complement current rail investment with capital expenditures on short gestation,
broad-based, high-impact projects in road transport 3
The best options for active transport 4
The best options for road-based public transport 5

III. The Coalition’s recommendations for the 2022 national budget 6

ANNEX A. People- and Environment-centric Indicators for Reforms in the Transportation System 9
 Biyahenihan for a Better Normal: Investing in Philippine Public Transport in 2022 and Beyond
Inputs of the Move As One Coalition to the 2022 National Budget as of 19 March 2021
Detailed Budget: bit.ly/MoveAsOneBudget2022; Statement: http://bit.ly/MoveAsOneBudgetStatement2022

I. Executive summary
The 2022 budget should be used to fill a Php150-billion gap in investments in road-based
public transport, pedestrian, and cycling infrastructure. This shift will address the massive shortage in
transport supply made worse by the pandemic. An overwhelming majority of Filipinos across age, sex,
education, geography, and socioeconomic class support this shift: 87% of Filipinos believe that our roads
“will be better off if public transport, bicycles, and pedestrians are given priority over private vehicles”
(SWS, 2020). These investments will improve outcomes for our pandemic response, public health, a just
and green economic recovery, road safety, equity, accessibility, wellbeing, and the environment.

Move As One’s
Biyahenihan for a Better Normal: Actual 2020-2021
Proposed 2022
Priority Pandemic Response Programs Budget
Budget
Service contracts (jeeps, buses, fare cards for automatic fare collection) 8,600,000,000 75,840,000,000
Active transport (protected bike lanes, safe pathways, at-grade
1,666,000,000 14,230,000,000
crosswalks)
Road-based public transport infrastructure (larger equity subsidy for
2,128,845,000 60,410,000,000
PUV Modernization Program, PUV-only lanes, bus stops, terminals)
Total Proposed Budget for Public Transport 12,394,845,000 150,480,000,000

A better normal requires a better spending mix. First, we should invest in moving people, not
just cars, on our roads. Traffic congestion is still rife because over the past decade, 99% of the Php2.86
trillion in national road-based programs was used for road building and widening. Only 1% was invested
in expanding road-based public transport supply and improving road efficiency and capacity for users.
Compared with car-only lanes, PUV-only lanes enable roads to carry up to 29 times more people, cycling
lanes up to 8 times more people, and walkways up to 10 times more people (TUMI, 2019).

Second, we should invest in more immediate mobility demands by investing in road-based

public transport: The immediate transport needs of millions of Filipinos who do not own private
vehicles are not being met. 98% of the Php2-trillion flagship project pipeline is for long-term rail
projects, and only 2% is planned for road-based public transport. Even assuming project schedules are
met, the current Build-Build-Build pipeline will not be enough to meet mobility demand over the next
decade. There is still time to meet immediate mobility demands by focusing on active transport and
road-based public transport, and investing in these will ensure that the Build-Build-Build program’s
investments in rail and road infrastructure benefit more Filipinos than just the very few who own
private vehicles and live or work near the rail lines being built.

Third, we should invest in strengthening the project management units in our transport
institutions and in the feedback mechanisms between government and civil society. There is enough
fiscal space for the Coalition’s proposed programs, but the capacity of our transport institutions to
manage new challenges must be enhanced. Route rationalization, PUV modernization, service
contracting, and incorporating active transport modes into transport planning are putting heavy
demands on transport institutions and personnel, over and above the already well-known challenges of
infrastructure planning and execution. We should ensure that transport institutions in both national
and local governments are properly staffed, given sufficient budgets, and empowered to deliver the
needed outcomes, on a permanent basis. As the Mandanas ruling takes effect, local government units
should be given a larger role in implementing and financing their local transport systems.

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 Biyahenihan for a Better Normal: Investing in Philippine Public Transport in 2022 and Beyond
Inputs of the Move As One Coalition to the 2022 National Budget as of 19 March 2021
Detailed Budget: bit.ly/MoveAsOneBudget2022; Statement: http://bit.ly/MoveAsOneBudgetStatement2022

The budget success indicators of the DOTr, DPWH, MMDA, and LTFRB should reflect
people-centered and nature-centered indicators and outcomes. These should adhere to the principles
of accessibility, efficiency, reliability, comfort, safety, and sustainability. (See Annex A).

II. The Coalition’s detailed comments

A. A better spending mix for a better normal

1. The large investments in infrastructure in recent years are helping to correct the country’s
infrastructure deficit. The ramp-up of rail projects is welcome as it is helping over the medium
to long term to expand and improve the quality of mass transit. Rail is an important part of the
public transportation mix, although its long gestation period and relatively high capital and
operating costs need parallel investments in road capacity improvements like bike lanes,
pedestrian infrastructure, service contracting, PUV-only lanes, larger equity subsidies for the
PUV modernization program, among others. For every P1 invested in road-based public
transport, there are P2.77 netted in economic returns (PSA 2012 IO tables). This ensures that the
government’s investments in transport will reach the 88% of the population who do not have
cars, both in the short and long terms.

2. Of the Php2 trillion in infrastructure projects under the Build-Build-Build Program, only 2%
goes to road-based transport while 98% goes to rail-based transport. Under this current mix,
even if we implement all the #BuildBuildBuild projects, we still will not be able to meet our
country’s mobility demand in the next decade. More road-based public transport supply is
needed.1

3. We should move people, not just cars. We spend so much on constructing, widening and
maintaining roads, but not enough on the mobility of people who ought to use the roads. The
bulk of Philippine infrastructure spending is found in the DPWH capital budget. Until now,
most of the urban road infrastructure developed by DPWH has been mainly to serve private
motor vehicles, the least efficient mode of travel. Because the vast majority of Filipinos do not
have access to a private car, this pattern of road infrastructure investment tends to
disproportionately benefit those who are already more affluent. Over the past 10 years, Php2.83
trillion or 99% of the total budgets for all road-based programs and projects went to road
infrastructure development, with only Php33 billion budgeted for road-based public transport
(GAA 2010-2021). The economic and poverty alleviation impact of road and bridge development
would be significantly enhanced with road infrastructure designed to serve the carless
majority--pedestrians, cyclists, and users of public transport.

B. The need to complement current rail investment with capital expenditures on short gestation,
broad-based, high-impact projects in road transport

1. The pandemic and the urgent need to improve mobility in urban areas for economic recovery
call for spending that will deliver significant, tangible, and immediate improvements in the
transportation environment. Sharp contractions in transportation can significantly bring
down the rest of the economy, and the land transport sector faced a 30.7% drop in 2020.
Passenger road transport inflation has spiked in parallel, from 2.6% in 2019 to 9.6% in 2020, as

1
Featuring forthcoming mobility supply and demand analysis by K. Chang, K.I.I. Abante, P. Mariano J.P. Sevilla, R.Y. Siy Jr., J.
Ugay.

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Biyahenihan for a Better Normal: Investing in Philippine Public Transport in 2022 and Beyond
Inputs of the Move As One Coalition to the 2022 National Budget as of 19 March 2021
Detailed Budget: bit.ly/MoveAsOneBudget2022; Statement: http://bit.ly/MoveAsOneBudgetStatement2022

reduced vehicle capacities worsened the public transport shortage in the Philippines (NEDA,
2021). Road transport inflation was up by almost 20% by the end of 2020, which means the
shortage (high demand, insufficient supply) shows up in the price data.

2. The priority in the coming budget cycles should be to shift as much of the capital budgets of
DOTr and DPWH as possible to initiatives that deliver immediate and sustained mobility
improvement.

3. Following are the best options.

a. For active transport

i. Expand the networks of protected bike lanes in emerging metro cities (Baguio,
Tagbilaran, Cagayan de Oro, General Santos, etc). Beyond the key metropolitan
areas of Metro Manila, Metro Cebu, and Metro Davao that were given funding
in the Bayanihan to Recover As One Act, other cities and municipalities should
also be provided funding assistance to construct bike lane networks in their
own LGUs.

ii. Upgrade the bike lanes funded under Bayanihan 2 in Metro Manila, Metro
Cebu, and Metro Davao to make them robust, durable, and fully compliant with
international standards such as US NACTO Urban Bikeway Design Guide,
Netherlands CROW Design Manual for Bicycle Traffic, and the Designing
Streets for Kids Guide.

iii. Broaden the scope of the DPWH 2021 GAA Special Provision No. 23 for the
Inclusion of Active Transportation Facilities in all Road and Bridge Projects to
include the design and construction of bike facilities such as secure bike
parking, shower areas, and repair stations in public spaces and key commercial
areas. In the 2021 budget, we estimate that around Php275 billion in DPWH
road and bridge projects are required to include active transport facilities
under Special Provision 23. One high-potential engagement might be with
cycling and walking tourism, with convergence program budgets of up to Php17
billion. (See this table for details.)

iv. Invest in safe pathways, green open spaces for well being, wider sidewalks,
more pedestrian islands, and at-grade crosswalks. Our streets can be more
inclusive and safer for pedestrians, especially the most vulnerable such as
children, pregnant women, persons with disability, and the elderly, as they
cross our roads.

v. Invest in bike-sharing programs especially where protected bike lanes

networks have been established. Bike sharing provides an easy, low-cost, and
efficient means of transportation within localities. The Institute for
Transportation and Development Policy (ITDP) recommends three metrics for
the success of bike-share initiatives: station density (10-16 stations per square
kilometer, and a station every 300 meters or so, which helps ensure there is a
station within convenient walking distance); bikes per resident (10-30 bikes
available for every 1,000 residents); and coverage area (minimum coverage of 10
square kilometers).

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Biyahenihan for a Better Normal: Investing in Philippine Public Transport in 2022 and Beyond
Inputs of the Move As One Coalition to the 2022 National Budget as of 19 March 2021
Detailed Budget: bit.ly/MoveAsOneBudget2022; Statement: http://bit.ly/MoveAsOneBudgetStatement2022

b. For road-based public transport

i. Infrastructure

1. Invest in well-maintained and accessible stops, terminals, and depots

for buses, jeepneys, and other public utility vehicles (PUVs) that are in
close proximity to key establishments in the area.

2. Implement PUV-only lanes and Bus Rapid Transit (BRT) that enable
roads to carry up to 16 times more people than car-only lanes (TUMI).
More efficient roads reduce the exposure risk of commuters to
COVID-19 while ensuring efficient mobility for the 88% of Filipinos
who do not own cars.

ii. Programs and institutional support

1. Increase equity subsidy for the Public Utility Vehicle Modernization

Program to P500,000. We need to increase the current subsidy of
P160,000 per vehicle to further incentivize our transport workers to
consolidate and modernize. Each modern PUJ unit costs around Php2
million, in addition to the upfront costs required from PUV drivers and
operators to be admitted in the program.

2. Expand the service contracting program. The initial Php5.56-billion

Bayanihan 2 budget and Php3-billion GAA 2021 budget were designed
for initial rollout of the program for 60,000 transport workers. As we
transition the entire transport industry nationwide into a
performance-based system, there is a need to expand the scope of the
program and comprehensively cover as many routes as possible as well
as to support the drivers under the program.

3. Distribute stored value cards for automatic fare collection. All users
of public transport should have access to a cashless system for fare
payment that can be integrated across multiple transport modes. The
system enables effective implementation of programs like service
contracting.

4. Strengthen our transport institutions. As we expand and scale up our

programs, our institutions need additional manpower and resources to
deploy new programs and sustain those operations to respond to our
mobility crisis that has been exacerbated by the pandemic. Critical
reforms in active mobility and public transport have already been
achieved by this administration. In order to sustain the impact of these
reforms, dedicated project management teams (composed of program
leaders, capacity building specialists, data specialists, M&E officers and
sustainability officers) for each of these key programs must be
established together with counterpart regional or area-based
coordinating teams to be able to serve the needs of its vast
constituency nationwide.

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 Biyahenihan for a Better Normal: Investing in Philippine Public Transport in 2022 and Beyond
Inputs of the Move As One Coalition to the 2022 National Budget as of 19 March 2021
Detailed Budget: bit.ly/MoveAsOneBudget2022; Statement: http://bit.ly/MoveAsOneBudgetStatement2022

III. The Coalition’s recommendations for the 2022 national budget

1. There is no better time to reorient the infrastructure investments of DPWH so that its road
and bridge construction and rehabilitation programs enable efficient, safe, convenient, and
sustainable public transport, walking, and cycling. The shift will result in a more productive,
pro-poor, and people-oriented use of road space. The performance evaluation metrics of our
transport institutions should cover people-centered and environment-centered indicators. (See
Annex A.)

2. DPWH should include in its 2022 budget the infrastructure to support urban road-based
public transport (stops, terminals, depots, PUV-only lanes, and BRT infrastructure) and active
transport (pedestrian and cycling infrastructure). Such road infrastructure investments will be
traffic-reducing, mobility-promoting, health-inducing, environmentally sustainable,
climate-friendly, and economy-boosting.

3. Most of the 2022 DOTr capital budget is already committed to finance rail projects that are
under implementation and with long-term ODA financing agreements. These projects should be
supported. However, to achieve a more balanced mix of spending, DOTr should aim for the rest
of its capital budget to be applied to road-based public transport and active transport.

4. A massive portion of the national budget has been dedicated to road infrastructure over the past
decade, but there has been no complementary investment in road-based public transport. To
rectify the current spending imbalance, DOTr should aim for its 2022 budget to have a higher
share allocated to active and road-based public transport.

5. The DOTr spending on road-based public transport should focus on improving vehicles and
operations management (e.g., PUV Modernization Program, service contracting, and
distribution of stored value cards for automatic fare collection) to enable an increase in public
transport supply and curb transport cost inflation.

6. DOTr’s active transport program should spend on bike lanes, bike facilities, bike-sharing
programs, and pedestrian-friendly infrastructure such as wider sidewalks, pedestrian islands,
at-grade crosswalks, green open spaces, and urban shade trees that improve urban biodiversity.

7. The implementation and budget execution capacity of DOTr needs to be supported in the short
to medium term to compensate for the limited DOTr plantilla (regular) staff available for
implementation of these crucial programs. Attention needs to be given to augmenting the
staffing of the DOTr Road Transport Sector, given its broad mandate and crucial role in the
current mobility and health crisis.

8. The national and local government units can co-implement transportation reforms together.
The Mandanas Ruling will allow the LGUs to co-finance these programs and share
responsibilities in public transport planning and execution, including closer consultation with
their local constituents. The Mandanas Ruling provides the funding for LGUs to establish their
own public transport agencies, which will further enable the effective scaling up and
enforcement of national transport policies.

9. The 2022 budget should reflect these investments to improve our pandemic response, public
health, road safety, equity, accessibility, economic recovery, and the environment.

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Biyahenihan for a Better Normal: Investing in Philippine Public Transport in 2022 and Beyond
Inputs of the Move As One Coalition to the 2022 National Budget as of 19 March 2021
Detailed Budget: bit.ly/MoveAsOneBudget2022; Statement: http://bit.ly/MoveAsOneBudgetStatement2022

a. Some demographics affected by our public transport shortage:

i. Half a million health workers, social workers, and barangay workers are forced
to walk kilometers because of inadequate public transport.
ii. At least 1.5 million persons with disability, at least 1 million pregnant women
and their newborns, and 7.5 million senior citizens need to take trips to offices,
stores, or hospitals.
iii. 2.7 million workers are employed in land transport, more than half of whom
are our drivers, conductors, and freight handlers. Already on their routes as
early as dawn and as late as midnight, they are among our most hardworking
laborers.
iv. 20 million students need to walk, bike, or take public transport to go to school,
when face to face classes resume.

b. Road capacity: PUV-only lanes enable roads to carry up to 29 times more people than
car-only lanes. Protected cycling lanes can carry up to 8 times more people than
car-only lanes. Walkways can carry up to 10 times more people than car-only lanes
(TUMI, 2019).

c. Public health and pandemic response: Many healthcare workers and frontline workers
need protected cycling lanes and well-ventilated public transport. These facilities allow
them to travel in safety and with sufficient ventilation and physical distancing away
from other citizens. The barangay health workers who need to travel throughout the
cities for tracing and disease surveillance work also need these facilities.

d. Equity: We should improve mobility for the 88% of Filipino households that do not own
a car in Metro Manila (JICA MUCEP 2015). Consumption basket: A low-income household
spends at least 20% of monthly household income on transport (JICA, 2014). Price: Road
transport inflation has increased by 20% by the end of 2020 because of the shortage in
public transport supply (PSA, 2021), eroding people’s purchasing power.

e. Political: An overwhelming majority of Filipinos across age, sex, education, geography,

and socioeconomic class support this shift: 87% of Filipinos believe that our roads “will
be better off if public transport, bicycles, and pedestrians are given priority over private
vehicles” (SWS, 2020).

f. Economic and labor multiplier: A peso invested in road-based public transport

investment is associated with at least P2.77 in economic returns (PSA 2012 IO tables).
This is a higher economic return than that of the P2.27 from construction projects. For
Php1 million in output generated by land transport, 4.4 jobs are generated. This makes
it the sector with the third-highest employment coefficient among non-agricultural
sectors (PSA 2012 IO tables).

g. Cost of business as usual: Investing in road based transport will reduce the cost of
being stuck in traffic because of roads that prioritize private vehicles (~7% of GDP)
(JICA, 2015). If we do not massively expand our active transport and public transport
capacity, in Metro Manila alone we will lose Php520 billion every year from longer
commutes, job losses, the shutdown of public transport operators, road crashes, and
carbon emissions. This is enough to push us deeper into recession that will take us
years to undo.

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Biyahenihan for a Better Normal: Investing in Philippine Public Transport in 2022 and Beyond
Inputs of the Move As One Coalition to the 2022 National Budget as of 19 March 2021
Detailed Budget: bit.ly/MoveAsOneBudget2022; Statement: http://bit.ly/MoveAsOneBudgetStatement2022

h. Environment: Every year, there are up to 4.5 million premature deaths, millions of
hospital visits, and billions of work absences worldwide attributable to air pollution
generated from burning fossil fuels, which causes higher incidences of chronic and
acute illnesses. Investing in active transport and sustainable mobility promotes better
air quality, improved wellbeing, and a greener environment. (Greenpeace Southeast
Asia 2020, Cardiovascular Research, 2020)

i. Road safety: On average, 34 people die daily in a road crash in the Philippines (WHO
Global Status Report on Road Safety, 2018). One of the most effective interventions for
reducing the frequency and severity of road crash injuries and the likelihood of death is
to reduce vehicle speeds. Conversely, designing and operating roads to achieve higher
vehicle speed is expected to raise the risk of serious injuries and likelihood of death in
road crashes. Road crashes alone drain a whopping Php475.8 billion of our country’s
GDP. This is based on Dr. Ricardo Sigua's estimate that 2.6% of our GDP (US$376.8
billion, or Php18.3 trillion, in 2019, according to the World Bank) is lost due to road
crashes.

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Biyahenihan for a Better Normal: Investing in Philippine Public Transport in 2022 and Beyond
Inputs of the Move As One Coalition to the 2022 National Budget as of 19 March 2021
Detailed Budget: bit.ly/MoveAsOneBudget2022; Statement: http://bit.ly/MoveAsOneBudgetStatement2022

ANNEX A. People- and Environment-centric Indicators for Reforms in the Transportation System
Principle 1. Accessibility
a. Public transport services and stops are reachable by walking.
b. Public transport services (vehicles and stops/stations/terminals) are easily accessible to all persons regardless of age,
sex, gender, and ability. PUVs and their routes are easily identifiable (number and/or color codes), have ramps, low
floor entry, wheelchair space, priority seating, audio announcement systems, at-grade crosswalks, and tactile
pavings.
c. Wide, well-designed, unobstructed, and interconnected walking and cycling paths are accessible from any PUV stop,
station, or terminal, and are adequately provided with bike racks and repair stations (with tools).
d. Public transport services are available 24 hours every day.
Principle 2. Efficiency and reliability
a. PUV services arrive according to schedule and travel at an average speed of at least 15 kph. Commuters do not wait
for more than 10 minutes in stops/stations before boarding.
b. Public transport systems are interconnected. Commuters do not make more than 2 transfers and don’t have to walk
for more than 5 minutes to reach a PUV stop or station.
c. Public transport services do not break down. In cases of breakdowns, rescue services and emergency response arrive
within 15 minutes of the incident.
d. Commuter complaints and feedback are responded to within 3 days. In cases of critical issues such as street hazards
and related obstacles, repairs of bike lanes and walkways are attended to within 24 hours of the incident report.
Principle 3. Comfort
a. Public transport vehicles are clean and well-maintained, have enough space for seating, wheelchairs, and luggage,
and have additional provisions for passenger comfort (e.g., wifi and internet connection, cooling and ventilation
systems).
b. PUV stops have adequate cover, lighting, seats, and are well maintained and clean.
c. PUV stations have complete, clean, and well-maintained facilities, such as toilets, food stations, waiting areas with
adequate seats, convenience stores, and other provisions for passenger comfort (e.g. wifi and internet connection,
cooling and ventilation systems).
d. Bike lanes and walkways have adequate cover, urban shade trees, lighting, resting areas, shower rooms, and similar
provisions for non-motorized personal mobility devices.
Principle 4. Safety
a. Public transport service is compliant with minimum public health and safety standards.
b. Public transport vehicles and infrastructure are regularly checked and maintained.
c. Public transport stations have security provisions such as roving security officers, emergency lines and kits, fire
extinguishers, and safety signages.
d. Bike lanes and walkways are protected, well lit, well-paved, and without obstructions.
e. Speed limits are enforced on all roads and bike lanes.
f. PUVs and public transport terminals, stations, and stops are safe spaces with adequate gender safety design and
gender and commuter welfare desks.
Principle 5. Sustainability
a. Public transport adopts “green” technologies and shifts to sustainable technologies such as rain catchment systems,
solar power, and sunroof lighting.
b. More people choose or shift to active mobility options such as walking and cycling.
c. Bike lanes and walkways have urban shade trees that cool down urban heat to invite more people to walk and cycle
and help urban biodiversity and improve water absorption to prevent floods.
d. Active mobility and public transport mitigate the impacts of climate and air pollution.

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