By Raymond Carl Dela Cruz | Philippine News Agency
By Raymond Carl Dela Cruz | Philippine News Agency
The Land Transportation Franchising and Regulatory Board (LTFRB) is set to launch the Service Contracting Program (SCP) on April 15 to ensure smooth and uninterrupted public utility vehicle (PUV) service across the country.
A message from the LTFRB sent to the Philippine News Agency on Tuesday said under the SCP, there will be two different kinds of contracts with PUV drivers and operators—gross type and net type.
With the gross type contract, PUV drivers and operators will provide Libreng Sakay (free ride) to all passengers along a set route in return for payment from the government.
On the other hand, PUVs with a net type contract will still collect fares from passengers.
“On top of that, the government will reward an incentive depending on the number of trips as agreed upon in the contract,” the agency said.
In a separate statement, LTFRB Chairperson Vigor Mendoza II said the SCP is one of the many efforts of the national government led by President Ferdinand R. Marcos Jr. to maximize assistance to both commuters and the PUV sector.
Mendoza said, “The areas of operations of the service contracting for land-based public transportation were based on the data analysis on commuter traffic volume and interconnectivity to the mass transport system.”
In Metro Manila, the SCP will provide transportation to passengers of the EDSA Bus Carousel as well as modern and traditional jeepneys plying routes passing LRT and MRT stations and other major transportation hubs.
“These routes were prioritized as they support connectivity to rail transport systems, serve high passenger demand corridors, improve overall commuter mobility, and help reduce traffic congestion in key areas,” he said.
On the other hand, the SCP will also be implemented in various routes in other large cities, such as Davao City and Cagayan de Oro City, particularly in busy routes and based on other factors that affect the smooth transportation of passengers.
“These routes were selected to maximize the impact of limited funding, support high-ridership corridors, and ensure service continuity in major urban areas outside Metro Manila,” he said.
The SCP, formalized in 2023 under LTFRB Memorandum Circular No. 2023-048, seeks to provide financial assistance to PUV drivers and operators.
Qualified beneficiaries of the SCP include consolidated transport service entities with no less than 10 units of traditional or modern jeepneys, Filcabs, or UV Express.
These beneficiaries must also have a valid certificate of public convenience or provisional authority, registered with the Land Transportation Office (LTO), and must have personal passenger accident insurance. (PNA)
