The Department of Transportation is pushing for an additional P5 billion in government funding to keep its Service Contracting Program running through July, covering operators of buses, jeepneys, and UV express vehicles as fuel costs continue to climb.
Transportation Secretary Giovanni Lopez disclosed the budget request during a roundtable with Inquirer.net, saying he had already written to the Department of Budget and Management and raised the matter directly with President Ferdinand Marcos Jr. at a recent UPLIFT meeting.
“Sumulat po kami ngayong araw… I asked the President during the last UPLIFT [Unified Package for Livelihoods, Industry, Food and Transport] meeting. So sinabi naman niya, sige. It’s all about timing and sana mailabas at maibigay yung pondo sa amin before matapos yung sinasabi nating pondo, yung existing funds right now,” Lopez said.
In the interim, the DOTr has set aside P1 billion to keep the program alive for two more weeks — P800 million for land-based routes and P200 million for maritime services.
Starting April 15, public utility vehicles under the SCP will receive per-kilometer payments calibrated by vehicle type. Traditional jeepneys will get P30 per kilometer, modern jeepneys and UV express units will receive P40, and buses will be paid P100. Lopez said the program is limited to route-based PUVs, which is why other vehicle types are excluded.
To prevent the payment delays that plagued earlier iterations of the subsidy scheme, Lopez said he has directed the Land Transportation Franchising and Regulatory Board to settle payments within three to five days of claims.
“That’s why I asked LTFRB na after three days to five days, bayaran nyo. Wag nang ulitin yung nangyari dati na it took months or weeks bago mabayaran. They need this and it defeats the purpose of the program if you pay them after two weeks, after 10 days, walang mangyayari,” he said.
Compliance under the SCP will be tracked using GPS technology, with drivers and operators bearing a P500 monthly fee to GPS providers. The Land Transportation Office, LTFRB, and the Metropolitan Manila Development Authority will also run a parallel manual monitoring system.
Commuters riding SCP-covered routes will receive a 20 percent fare discount, which Lopez said applies separately from the existing 20 percent discount already available to students, senior citizens, and persons with disabilities.
On the fuel subsidy front, Lopez said P1 billion of the P2.5 billion allocation has already been released since distributions began on March 24. The program covers around 245,066 drivers and over 1.18 million PUV operator units, with individual subsidy amounts ranging from P1,500 to P10,000 depending on the type of vehicle. Drivers and operators without legitimate registration are excluded from receiving the fuel subsidy, though their details are forwarded to the Department of Social Welfare and Development, which administers a separate P5,000 cash assistance grant under its Assistance to Individuals in Crisis Situations program.
