Service contracting to resume once LTFRB gets Comelec exemption

By Raymond Carl Dela Cruz

March 24, 2022, 4:48 pm

<p><em>(File photo)</em></p>

(File photo)

MANILA – Public utility vehicle (PUV) drivers, operators, and the commuting public will soon be able to enjoy the benefits of the government’s Service Contracting Program (SCP) once the Commission on Elections (Comelec) exempts the program’s disbursement during the 2022 election season.

In a Viber message to reporters on Thursday, Land Transportation Franchising and Regulatory Board (LTFRB) Executive Director Kristina Cassion said an application for exemption has already been submitted for the SCP to the Comelec.

“Once exemption from Comelec is obtained, Notice of Onboarding will be issued to the participant-operators to begin implementation,” Cassion said.

To date, she said the LTFRB is conducting orientation to various operators nationwide and is already accepting documentary requirements as part of their service contract.

She said the PHP7 billion budget for the program was released by the Department of Budget and Management on Monday to the Department of Transportation (DOTr) who later downloaded the funds to the LTFRB on Wednesday.

According to the LTFRB’s program briefer on the SCP, the latest implementation of the program will run from March to December 2022 or “until all the funds allotted are exhausted.”

The LTFRB estimated that around 553 PUV operators, 24,408 drivers, and 93,096,900 commuters are expected to benefit from the SCP.

The SCP will offer two types of contracts to interested PUV drivers and operators—the first is a gross service contract where they receive additional revenue based on their daily number of trips providing free rides to customers.

“It has a rate per kilometer of PHP84 for consolidated entities operating public utility buses (PUB). While a rate per kilometer of PHP54 for consolidated entities operating smaller denominations such as modern and traditional public utility jeepneys and UV Express units,” the LTFRB said.

The second type is a net service contract where participating PUBs and mini-buses will receive PHP46.50 per kilometer of service and smaller PUVs with PHP28 per kilometer of service.

PUV operators will also receive a one-time incentive of PHP5,000 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 SCP was meant to provide a temporary livelihood to displaced transport workers during the Covid-19 pandemic.

The latest implementation of the program aims to ensure “efficient and safe” operations of PUVs, provide financial support to transport operators and workers, and sustain support to frontline healthcare workers and authorized persons outside of residence by providing free rides. (PNA)

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