Implementation of phase 3 of the ongoing service contract program

The Department of Transportation (DoTr) is currently preparing measures for the implementation of Phase 3 of the Service Contract Program, which will support the mobility needs of the public by ensuring service efficiency and reliability, complemented by the provision free rides through the Libreng Sakay program.

The service contract program also aims to provide financial support to transport service providers and workers through a performance-based payment system. Under this program, operators and drivers of public utility vehicles (PVUs) will be paid by the Land Transportation Franchising and Regulatory Board (LTFRB), based on the maximum number of trips made per week with or without passengers and in accordance with performance. agreed. indicators.

The Pula 7 billion budget for Phase 3 of the Service Contract Scheme was released by the Department of Budget and Management at DoTr on March 21, 2022 and was uploaded to the LTFRB on March 23, 2022.

Phase 3 of the service contract program will run from March to December 2022 or “until all allocated funds are exhausted”.

Meanwhile, LTFRB Chairman Martin Delgra 3rd said the agency was only awaiting the results of its waiver request on Election Commission disbursements before the implementation of Phase 3 of the program. service contracts during the election period.

“Once we obtain the exemption, we will begin implementing the program immediately. Currently, the LTFRB provides operators nationwide with guidance on the program, and operators submit their documentary requirements as attachments to their service contracts,” says Delgra.

The LTFRB estimates that approximately 93 million riders will be registered upon implementation of Phase 3 of the service contract program.

PUV operators will also receive a one-time incentive of 5,000 PUV 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 service contract program is intended to provide temporary livelihoods to transport workers displaced during the Covid-19 pandemic.

The latest implementation of the program is included in the General Appropriations Act for the 2022 fiscal year and aims to ensure “efficient and safe” operations of PUVs, provide financial support to transport operators and workers and support the Filipino workers and commuters.