The Department of Transportation (DOTr) through the Land Transportation Franchising and Regulatory Board (LTFRB) begins implementing today, April 11, the third phase of the P7-billion service contracting program.
The program will continue to help public utility vehicle (PUV) drivers and operators as well as commuters amid the impact of the pandemic and the rising fuel prices.
Arthur Tugade, transportation secretary, said DOTr in cooperation with LTFRB and other government agencies will continue implementing the program under the General Appropriations Act 2022 (GAA) with a P7-billion budget.
Thus, health care workers and authorized persons outside of residence can still avail of free ride services nationwide.
DOTr said starting today, 510 public utility buses in the EDSA busway will give free rides and additional routes of PUVs will offer free rides in the coming days.
Under the service contracting program, PUV operators are given two options: the gross contract which allows them to earn based on the number of trips per week, with or without passengers; and the net contract that allows the drivers and operators to earn from passenger fare and based on the number of trips per week.
With increasing fuel prices, DOTr said it will raise the payment per kilometer. For gross contract, the payment will increase from P82.50 per kilometer to P84 per km. for PUBs, tourist and mini buses, and from P52.40 to P54 per km. for consolidated modern and traditional jeepneys and vans.
Under the net contract, DOTr said the payment will increase from P45.50 per km. to P46.50 per km. for consolidated and mini buses, and from P27 to P28 per km. for consolidated modern and traditional jeepneys, vans and multicabs.
Meanwhile, the P7-billion budget for phase 3 of the service contracting program was released by the Department of Budget and Management to the DOTr last March 21 and was downloaded to LTFRB last March 23.
The program is targeted to be completed by December 2022 or “until all the funds allotted are exhausted,” according to LTFRB.
LTFRB expects that around 93 million commuters will benefit during the implementation of the program this year.
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 GAA 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.
