The Department of Transportation (DOTr) said on Saturday, March 26, that it is now gearing up for the implementation of the Service Contracting Program, which it said, will aid both public utility vehicle (PUV) drivers and commuters amid the effects of the oil price hikes.
Under the program, the Land Transportation Franchising and Regulatory Board (LTFRB) will pay for the maximum number of trips PUV operators and drivers make per week — with or without passengers.
Beneficiaries will also receive a one-time incentive of P5,000 per unit aside from the operational incentives that will be given weekly.
“This will provide our drivers and operators regular payouts amid the rising fuel prices and inflation. The other benefit is that the Service Contracting will allow the resumption of the libreng sakay (free ride),” Transportation Secretary Arthur Tugade said in a statement.
For his part, LTFRB Chairman Martin Delgra III said the agency is waiting for the results of its application for exemption on disbursements from the Commission on Elections (COMELEC) for the program’s implementation amid the election period.
“Once we get the exemption, we will start implementing the program immediately. Currently, the LTFRB is giving operators nationwide an orientation about the program, and operators are submitting their documentary requirements as attachments to their service contracts,” Delgra said.
He added that the agency estimates around 93 million ridership under the program, twice the number of ridership last year at 44 million.
The DOTr has received the P7 billion budget from the Department of Budget and Management (DBM) on March 21 and downloaded the fund to LTFRB on March 23. The program will run from March to December until the allotted funds are exhausted.