Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
EXPLANATORY NOTE 
This bill seeks to establish the Transportation Cooperatives Development Loan 
Fund to make available loan facilities to transportation cooperatives to provide 
them with sustainable employment opportunities. 
Transportation cooperatives can hardly access credit facilities of the 
government or commercial financing institutions because of stringent security 
requirements. Their deprivation of financial assistance is one of the main road 
blocks in their compliance with modernization program on land and sea safety 
standards for public utility vehicles and vessels. Transportation Cooperatives, 
like other cooperatives, should be ensured of technical guidance, financial 
assistance and other services to develop them into viable and responsive 
economic enterprises. 
In view of the foregoing, the swift passage of this bill Is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
May 15, 2023
9:00 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
ESTABLISHING THE TRANSPORTATION COOPERATIVES DEVELOPMENT 
LOAN FUND, APPROPRIATING AND SOURCING FUNDS THEREOF AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the "Transportation 
Cooperatives Development Loan Fund Act." 
SEC. 2. Declaration of Policy. – It is hereby declared the policy of the State to 
promote the viability and growth of the transportation cooperative sector as the 
primary provider and source of safe, efficient, and environment-friendly land and sea 
transport service in the transport of passengers and goods geared towards structural 
economic growth and development of the country. 
Towards this end, the State shall recognize the transportation cooperative system as 
a tool towards the integration of land and sea public transport system, not only as a 
means to effect economy and efficiency in the movement of goods and passengers, 
but also as a measure to ameliorate the social and economic conditions of public 
transportation workers and their families through various strategies that will ensure 
sustainable employment opportunities. 
The government and all its branches, subdivisions, instrumentalities and agencies 
shall ensure the provision of technical guidance, financial assistance and other 
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incentives to the transportation cooperative sector as partner of the government in 
building a sustainable nation. 
 
SEC. 3. Transportation Cooperatives Development Loan Fund. – There is hereby 
established a "Transportation Cooperative Development Loan Fund" as principal 
source of financial assistance to the Transportation Cooperative Sector to pursue its 
various economic activities to attain its primary objective of improving the lives of the 
land and sea public transport workers, more so in the implementation of the Public 
Utility Vehicle Modernization Program (PUVMP). 
 
The Fund, in the amount of FIVE (5) BILLION (P5,000,000,000.00) PESOS, shall be 
sourced from the Motor Vehicle User's Charge on owners of all types of motor 
vehicles as provided for under Republic Act No. 8794. 
 
SEC. 4. Use of the Funds. – The Fund herein established and appropriated will be 
used as a principal source of financial assistance exclusively for Transportation 
cooperatives duly registered with the Cooperative Development Authority and 
accredited with the Department of Transportation (DOTr), thru the Office of 
Transportation Cooperatives (OTC), which shall include but not limited to: 
 
1. Transport modernization or vehicle/vessel acquisition programs that conform 
to land and sea safety standards taking in consideration the roadworthiness 
of public utility vehicles pursuant to DOTr Department Order No, 2002-30, 
LTFRB Memorandum Circular No. 2012-017 and Resolution No. 2013-01, 
MARINA'S modernization program, and DOTr DO No. 2017-011; 
 
2. Engagement in Allied Businesses pursuant to Art. 112 of R.A. 9520 and Rule 
V, Section 2 of its implementing Rules and Regulations as follows: a. 
Importation, distribution and marketing of petroleum products in accordance 
with existing laws; 
    a. Importation, distribution and marketing of petroleum products in      
      accordance with existing laws; 
    b. Operation of gasoline stations and transportation service centers; 
    c. Importation, distribution and marketing of spare parts and supplies; 


 
 
and 
    d. Marketing of vehicle/drivers insurance policies. 
 
3. Establishment of manufacturing/assembly and repair shops for the 
transportation cooperative sector's land and sea requirements. 
 
SEC. 5. Administration of the Funds. – To administer the Fund and provide policy 
guidelines in the usage of the same, a Board of Administrators is hereby created and 
shall be composed of the following: 
 
DOTr Sec or Usec. for Land Transportation 
 
- 
 
Chairperson 
OTC Chairperson  
 
 
 
 
 
 
 
- 
 
Vice-Chairperson 
LTFRB Chairperson  
 
 
 
 
 
 
- 
 
Member 
CDA Chairperson  
 
 
 
 
 
 
 
- 
 
Member 
Department of Energy Representative  
 
 
- 
 
Member 
DBP Representative  
 
 
 
 
 
 
- 
 
Member 
NFTC Representative  
 
 
 
 
 
 
- 
 
Member 
Sectoral Apex Organization for Public Utilities 
President  
 
 
 
 
 
 
 
 
 
- 
 
Member 
 
Likewise, the Board of Administrators shall create and organize a Management 
Group to handle the operation and management of the Fund. 
 
SEC. 6. Implementing Rules and Regulations. – The Board of Administrators 
created under Section 4 likewise shall promulgate the necessary Implementing Rules 
and Regulations for the effective and efficient implementation of this Act. 
 
SEC. 7. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
two (2) newspapers of general circulation. 
 
Approved,