NextGen Day

MANILA, Philippines — Once the Commission on Elections (Comelec) exempts the program’s disbursement during the 2022 election season, public utility vehicle (PUV) drivers, operators, and the general public will soon be able to profit from the government’s Service Contracting Program (SCP).

Executive Director Kristina Cassion of the Land Transportation Franchising and Regulatory Board (LTFRB) indicated in a Viber message to media on Thursday that an application for exemption for the SCP has already been submitted to the Comelec.

“Once Comelec exemption is acquired, the participant-operators will get Notice of Onboarding to commence implementation,” Cassion stated.

She stated that the LTFRB is now providing training to various operators across the country and that they are already adopting documentary criteria as part of their service contract.

She said the Department of Budget and Management delivered the PHP7 billion budget for the program on Monday to the Department of Transportation (DOTr), which then downloaded the monies to the LTFRB on Wednesday.

The latest implementation of the SCP, according to the LTFRB’s program briefer on the program, will continue from March to December 2022, or “until all the monies granted are consumed.”

The SCP is expected to benefit about 553 PUV operators, 24,408 drivers, and 93,096,900 travelers, according to the LTFRB.

The SCP will give interested PUV drivers and operators two types of contracts: the first is a gross service contract, in which they would receive additional cash based on the number of trips they make each day, offering free rides to customers.

“For consolidated entities operating public utility buses, the charge per kilometer is PHP84” (PUB). While consolidated organizations running smaller denominations such as contemporary and conventional public utility jeepneys and UV Express units will pay PHP54 per kilometer, according to the LTFRB.

The second form of contract is a net service contract, under which participating PUBs and minibusses will be paid PHP46.50 each kilometer of service, while smaller PUVs will be paid PHP28 per kilometer.

Operators of PUVs will also receive a one-time incentive of PHP5,000 per unit to cover “pre-operational costs,” with weekly operational incentives.

The SCP was established under Republic Act 11494, also known as the Bayanihan to Recover as One Act, to offer a temporary source of income for displaced transport workers during the Covid-19 outbreak.

The program’s most recent implementation aims to assure “efficient and safe” PUV operations, provide financial support to transport operators and personnel, and continue to provide free trips to frontline healthcare providers and authorized persons outside of their homes.

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