CAGAYAN DE ORO CITY – The Land Transportation Franchising and Regulatory Board (LTFRB) officially launched its Service Contracting Program (SCP) for Public Utility Vehicles (PUVs) in Cagayan de Oro on April 15, 2026. This initiative, funded under the 2026 General Appropriations Act, subsidizes PUV operators to ensure continuous service for commuters, a move that is poised to significantly enhance the city’s tourism mobility. By providing a reliable, predictable, and more comfortable public transport system, the program aims to make navigating Cagayan de Oro easier for both its residents and its visitors.
A National Initiative with Local Impact in CDO
The national program is a response to the global fuel price hikes exacerbated by Middle East tensions. Under the SCP, the government compensates PUV drivers and operators per kilometer driven, guaranteeing them a stable income and allowing them to offer a 20% fare discount to all passengers, including tourists. This reduces the financial burden on commuters while ensuring drivers are not losing money due to empty trips. For Cagayan de Oro, this translates to a transport system that is more active and more accessible to tourists.
Streamlined Access for PUV Operators
To encourage participation, the LTFRB has shifted to a fully online application system, replacing the previous, more cumbersome process. PUV operators in Cagayan de Oro can now register through an online portal, streamlining their enrollment in the program and allowing for faster, more efficient deployment of service-contracted vehicles on the city’s roads.
Enhancing the Tourist Experience
For visitors, the immediate benefits are clear. A consistent and well-compensated fleet of PUVs means that tourists can rely on jeepneys and other public transport to reach key destinations without long waits. Whether it's traveling from a downtown hotel to the vibrant Divisoria night market or catching a connecting jeepney to the Laguindingan Airport bus terminal, the improved reliability of public transport enhances the overall travel experience.
A Strategic Part of CDO’s Mobility Plan
The SCP is a key pillar of the government’s broader strategy to ensure transport stability and is part of a series of complementary measures, including fuel subsidies for critical sectors. In Cagayan de Oro, this program works in tandem with other major projects, such as the planned 25‑km Bus Rapid Transit (BRT) system connecting Laguindingan Airport to the city. Together, these initiatives are creating a cohesive and robust public transport network, making the city a more attractive destination for independent travelers and group tours alike.
