The P1.4 billion fund that the Department of Budget and Management (DBM) released for Service Contracting Program will secure the free ride for commuters in Metro Manila until December this year, the Land Transportation Franchising and Regulatory Board (LTFRB) said.
LTFRB chairperson Cheloy Velicaria-Garafil said the fund is now ready for use and will be tapped to extend the contract with the transport groups under the EDSA Busway.
“We are happy and welcome this positive development and this means that the riding public is assured of the continuity of the free ride service until December,” said Garafil.
Commuters have been appealing to extend the free ride in EDSA amid the rising prices of basic commodities caused by inflation.
This prompted the DBM to find and secure fund for the program.
The Service Contracting Program was earlier affected by the government’s non-payment of its obligation to at least two bus companies under the EDSA Bus Carousel Program.
The non-payment resulted in the bus companies deciding to limit the bus deployment for the program. This eventually resulted in thousands of commuters that were stranded in various riding points along EDSA.
The LTFRB then initiated a dialogue with the two bus companies and expedite the payment under the condition that the bus firms will deploy more than 400 buses during rush hours from 200.
Garafiul said that they already paid a large bulk of the government’s balance and as of this week, the bus firms were already paid for the Week 15 of their operation, or from July 17 to 23.
“We are trying our best to settle the balance so that there would be no delay in the free ride services,” said Garafil.