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DOTr, LTFRB prepare for service contract program implementation – Manila Bulletin

DOTr, LTFRB prepare for service contract program implementation

The Department of Transportation (DOTr) said Saturday, March 26 that it is now preparing to implement the service contract program, which it says will help both drivers of public utility vehicles (LCVs) and commuters amid the effects of rising oil prices.

Under this program, the Land Transportation Franchising and Regulatory Board (LTFRB) will pay for the maximum number of trips made per week by PUV operators and drivers, with or without passengers.

Beneficiaries will also receive a one-time incentive of P5,000 per unit on top of the operational incentives that will be granted weekly.

“This will provide our drivers and operators with regular payments amid rising fuel prices and inflation. The other benefit is that the service contract will allow libreng sakay (free ride) to resume,” said Transportation Secretary Arthur Tugade in a statement.

For his part, LTFRB Chairman Martin Delgra III said the agency was awaiting the results of its request for exemption from disbursements from the Election Commission (COMELEC) for the implementation of the program during the election period.

“Once we get the exemption, we will immediately start implementing the program. Currently, the LTFRB provides operators nationwide with program guidance, and operators submit their document requirements as attachments to their service contracts,” said Delgra.

He said the agency estimates the number of riders under the program at about 93 million, double last year’s ridership of 44 million.

The DOTr received the 7 billion peso budget from the Department of Budget and Management (DBM) on March 21 and uploaded the fund to the LTFRB on March 23. The program will run from March to December until the allocated funds are exhausted.