EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
Third Regular Session 
)
SENATE
’21 SEP 22 P 2 35
2413
Introduced by Sen. Juan Miguel F. Zubiri
AN ACT
ESTABLISHING THE TRANSPORTATION COOPERATIVES DEVELOPMENT LOAN 
FUND, APPROPRIATING AND SOURCING FUNDS THEREOF AND FOR OTHER 
PURPOSES.
EXPLANATORY NOTE
The transportation cooperative sector plays a vital role in providing safe, efficient, 
and environment-friendly land and sea transport services in the movement of goods and 
passengers geared towards structural economic growth and development of the country. 
Thus, along with other sectors of the industry, is considered as partner of the government 
in building a sustainable nation.
R.A. 9520, otherwise known as the Philippine Cooperative Code of 2008 affirms 
that the government and all its branches, subdivisions, instrumentalities and agencies 
shall ensure the provision of technical guidance, financial assistance and other services 
to enable cooperatives to develop into viable and responsive economic enterprises and 
thereby bring about a strong cooperative movement that is free from any conditions that 
might infringe upon the autonomy or organizational integrity of cooperatives. In reality, 
however, our transportation cooperatives seldom enjoy the various privileges and 
preferential treatment afforded to them by R.A. 9520. Furthermore, our transportation 
cooperatives can hardly access credit facilities of the government or commercial financing 
institutions because of stringent security requirements. While our transportation 
cooperatives are very much willing to comply with the existing modernization program 
on land and sea safety standards for public utility vehicles and vessels, they are deprived 
of financial assistance from various government projects for so many other reasons.
This proposed measure seeks to provide our transportation cooperatives 
sustainable employment opportunities by making available loan facilities so they can keep


up with the challenges brought about by the changing times, thus ameliorating the social 
and economic conditions of land and sea public utility transportation workers and their 
families in the process.
In view of the foregoing, the swift passage of this bill Is earnestly sought.
N MIGUEL F. ZUBIRI


EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
Third Regular Session 
)
SENATE
’21 SEP 22 P2 3[5
Introduced by Sen. Juan Miguel F. Zubiri
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 
assembied:
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SECTION 1. Short Title. - This Act shall be known as the "Transportation
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Cooperatives Development Loan Fund Act."
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SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to
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promote the viability and growth of the transportation cooperative sector as the primary
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provider and source of safe, efficient, and environment-friendly land and sea transport
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service in the transport of passengers and goods geared towards structural economic
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growth and development of the country.
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Towards this end, the State shall recognize the transportation cooperative system
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as a tool towards the integration of land and sea public transport system, not only as a
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means to effect economy and efficiency in the movement of goods and passengers, but
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also as a measure to ameliorate the social and economic conditions of public
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transportation workers and their families through various strategies that will ensure
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sustainable employment opportunities.
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The government and all its branches, subdivisions, instrumentalities and agencies
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shall ensure the provision of technical guidance, financial assistance and other incentives
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to the transportation cooperative sector as partner of the government in building a
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sustainable nation.


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SEC. 3. Transportation Cooperatives Development Loan Fund. - There is
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hereby established a "Transportation Cooperative Development Loan Fund" as principal
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source of financial assistance to the Transportation Cooperative Sector to pursue its
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various economic activities to attain its primary objective of improving the lives of the
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iand and sea public transport workers, more so in the implementation of the Public Utility
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Vehicle Modernization Program (PUVMP).
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The Fund, in the amount of FIVE (5) BILLION (P5,000,000,000.00) PESOS, shall
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be sourced from the Motor Vehicle User's Charge on owners of all types of motor vehicles
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as provided for under Republic Act No. 8794.
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SEC. 4. Use of the Funds. - The Fund herein established and appropriated will
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be used as a principal source of financial assistance exclusively for Transportation
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cooperatives duly registered with the Cooperative Development Authority and accredited
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with the Department of Transportation (DOTr), thru the Office of Transportation
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Cooperatives (OTC), which shall include but not limited to:
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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;
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.
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SEC. 5. Administration of the Funds. - To administer the Fund and provide
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policy guidelines in the usage of the same, a Board of Administrators is hereby created
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and shall be composed of the following:


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DOTr Sec or Usee, for Land Transportation 
OTC Chairperson 
LTFRB Chairperson 
CDA Chairperson
Department of Energy Representative 
DBP Representative 
NFTC Representative
Sectoral Apex Organization for Public Utilities 
President
Chairperson
Vice-Chairperson
Member
Member
Member
Member
Member
Member
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Likewise, the Board of Administrators shall create and organize a Management
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Group to handle the operation and management of the Fund.
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SEC. 6. Implementing Rules and Regulations. - The Board of Administrators
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created under Section 4 likewise shall promulgate the necessary Implementing Rules and
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Regulations for the effective and efficient implementation of this Act..
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SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in two (2) newspapers of general circulation.
Approved.