Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
ESTABLISHING THE TRANSPORTATION COOPERATIVES DEVELOPMENT LOAN FUND, 
APPROPRIATING AND SOURCING FUNDS THEREOF AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
Mobility is an important discourse in any economy. It allows people to fully participate in our 
society. As such the importance of the transport sector could not be overstated. With the onset 
of the COVID-19 pandemic, the country’s transport sector was among the hardest hit. But even 
before the ongoing global health crisis, the transport sector was confronted with numerous issues 
and challenges. This is where transportation cooperatives come in. They formulate policies, 
guidelines, and plans geared towards the welfare of member public utility vehicle drivers. They 
initiate projects that will up the economic status of every member. They also provide various 
services to their members such as training, seminars, and the like so that members may upgrade 
their skills and knowledge. Transport cooperatives for years have allowed the sector to render 
unhampered service to the public—cementing their role as a government partner in providing 
mobility to the public.  
In this regard, this measure seeks to assist transport cooperatives in growing and to ensure 
transport cooperatives’ viability as the primary provider and source of safe, efficient, and 
environment-friendly land and sea transport service. This measure shall establish a Transportation 
Cooperatives Development Loan Fund in the amount of Five Billion Pesos which 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. This Fund shall be the 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. 
On behalf of the people of Parañaque City’s Second District, and for the common good of the 
Filipino people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
September 22, 2022
5:00 pm
5100


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
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 toward 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 affect 
the 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 incentives to the transportation 
cooperative sector as a 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 the 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). 
5100


The Fund, in the amount of FIVE (5) BILLION (P 5,000,000,000.00) 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 into consideration the roadworthiness of public utility vehicles 
under 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 under 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 by 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/driver’s 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,