Phase 3 of service contracting program now underway, DOTr says
MANILA, Philippines — The Department of Transportation is gearing up for the implementation of Phase 3 of the Service Contracting Program, which it said will "sustain the mobility needs of the riding public" by ensuring the efficiency and reliability of service.
In a statement sent to reporters, the DOTr said that 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 week and was downloaded to the LTFRB on March 23.
Phase 3 of the Service Contracting Program will run from March to December 2022 or “until all the funds allotted are exhausted.” It will also be complemented by the provision of free rides through the Libreng Sakay Program.
“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’...that will be implemented nationwide,” Transportation Secretary Tugade said.
The Service Contracting Program also aims to provide financial support to transport service providers and workers through a performance-based payout system.
Under the program, PUV operators and drivers will be paid by the Land Transportation Franchising and Regulatory Board based on the maximum number of trips made per week, with or without passengers, and in compliance with agreed-upon performance indicators.
Meanwhile, LTFRB Chairman Martin Delgra III said that 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,” he Delgra said.
The LTFRB estimates that around 93 million ridership will be recorded in the implementation of the Phase 3 of the Service Contracting Program.
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 No. 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 COVID-19 pandemic.
The department said that the latest implementation of the program was included in the General Appropriations Act for the 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.
- Latest
- Trending
