Some 60,000 public utility vehicle (PUV) drivers will benefit from the net service contracting scheme of the Land Transportation Franchising and Regulatory Board (LTFRB) which is now in the process of implementing the program, an official said on Tuesday.
In a virtual briefing on Tuesday, LTFRB Chairman Martin Delgra III bared the implementing guidelines of the program that will allow drivers and operators of PUVs to enter into transport service contracts with the government to help in easing the impact of the pandemic in the transportation sector.
"This program is basically contracting the services of PUV operators to help raise the level of service, reliability, and efficiency in the country's public transport system," Delgra told reporters.
According to Delgra, the program is in line with the Bayanihan to Recover as One Act or the "Bayanihan 2" where some P5.58 billion funding has been allotted to implement the scheme and assist PUV drivers displaced by the health crisis.
The transport sector has been among the hardest-hit by the enforcement of the enhanced community quarantine which mandated a suspension on all forms of public transportation, cutting the main source of income of thousands of PUV drivers and operators.
The LTFRB chief said service contracting is seen as the "new public transportation industry business model" that will address several problems in the sector brought by the pandemic such as the unwillingness of some operators to operate, affecting the mobility of commuters.
Under the proposed program, the government will provide the payouts for public transportation services where the operators or drivers are given performance-based subsidy according to vehicle-kilometers traveled and compliance with performance indicators.
LTFRB Technical Division head Joel Bolano said different rates per kilometers have been set by the Board for each kind of PUV -- P11 per kilometer for traditional and modern public utility jeepneys (PUJs) and P23.10 for passenger buses.
Bolano explained that the agency has arrived at these rates through factoring in costs of operations of the drivers and operators such as fuel, boundary, as well as other expenses needed in complying with safety and health protocols in public transport.
The subsidy to be given, Bolano said, will be calculated by multiplying the rates by the number of kilometers run per day and will be disbursed weekly to the drivers through the Land Bank of the Philippines.
Delgra emphasized that the earnings of the drivers could further increase through incentives that would be based on service quality, commuter feedback, and performance of the driver.
However, he added that violations committed will be counted as demerit while accidents can lead to the termination of the contract.
The project will cover some 30,000 PUV units which will be operated by two drivers each for 18 hours a day. Buses and modern and traditional PUJs will be included in the program in Metro Manila, while only drivers of passenger buses are qualified in Metro Cebu and Metro Davao.
To ensure compliance in performance indicators, Delgra said that a third-party systems manager will monitor the operators and drivers on the ground to ensure that standards are followed such as the vehicle-kilometer operated, reliability, driver and vehicle quality, passenger and staff security, and customer or end-user satisfaction.
Through the Bayanihan 2, Delgra said that the net service contracting program will run from October to December, but he added that the Department of Transportation (DOTr) is pushing for the continuation of the program until next year.
Meantime, the LTFRB said that they are continuously coordinating with the drivers as well as some cooperatives in signing up for the program which can be done through registering at the agency's Facebook page or websites at ncr-ltfrb.pisopay.com.ph or www.ltfrb.gov.ph.
"For now, we are already starting to capture the data of the drivers. There is already a department order and guidelines on service contracting, the procurement of a systems manager is ongoing, and additional personnel is now in place to handle this program. We are just waiting for the budget to be cascaded to us to start its implementation," Delgra said.
Last month, the Inter-Agency Task Force for Emerging Infectious Diseases approved the implementation of the service contracting scheme to subsidize public transport operations, incentivize PUV operators to return, serve commuters, and restore the livelihood of displaced transport workers, among others.