The Department of Transportation (DOTr), through the Land Transportation Franchising and Regulatory Board (LTFRB), is seeking approval to implement phase 3 of the service contracting program starting this month.
Last week, the DOTr said the P7 billion budget for phase 3 of the service contracting program was released by the Department of Budget and Management to the agency last March 21 and was downloaded to LTFRB last March 23.
Martin Delgra III, LTFRB chairman, said in a statement the agency is just waiting for the results of its application for exemption on disbursements from the Commission on Elections before phase 3 of the service contracting program is implemented 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.
The program is targeted to run from March to December 2022 or “until all the funds allotted are exhausted,” according to LTFRB.
The service contracting program will sustain the mobility needs of the riding public by ensuring the efficiency and reliability of service, complemented by the provision of free rides through the Libreng Sakay program.
“First, 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’,” said Arthur Tugade, DOTr secretary, pointing out the free ride will be implemented nationwide.
LTFRB expects that around 93 million commuters will benefit during the implementation of the program this year.
Under the program, public utility vehicle (PUV) operators and drivers will be paid by the LTFRB based on the maximum number of trips made per week, with or without passengers and in compliance with agreed-upon performance indicators.
The service contracting program also aims to provide financial support to transport service providers and workers through a performance-based payout system.
PUV operators will also receive a one-time incentive of P5,000 per unit to cover “pre-operating costs” while operational incentives will be given on a weekly basis.
Originally launched under Republic Act 11494 or the Bayanihan to Recover as One Act, the service contracting program was meant to provide a temporary livelihood to displaced transport workers during the coronavirus pandemic.
The latest implementation of the program was included in the General Appropriations Act for fiscal year 2022 and aims to ensure “efficient and safe” operations of PUVs, provide financial support to transport operators and workers, and sustain support to Filipino workers and commuters.
