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DBM releases P7 billion for expanded PUV service contracting program
By RICHA NORIEGA,GMA NewsThe Department of Budget and Management (DBM) has released P7 billion to expand the service contracting program (SCP) for affected public utility vehicle (PUV) drivers following the consecutive weeks of fuel price hikes.
In a statement, the DBM said the SCP aims to provide cash subsidies to affected PUV drivers, adding that it will also ensure the efficiency and safety of public transport services amid the current health and economic crisis.
The department said it released the P7 billion to the Department of Transportation (DOTr) for the implementation of the said program.
Under the service contracting program, operators and drivers who participate in the government’s free ridership program
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Operators of PUVs will be contracted via an agreement based on a plan prepared by the Land Transportation Franchising and Regulatory Board (LTFRB).
“PUV drivers will then be receiving regular performance-based subsidies based on the number of trips made per week, regardless of the number of passengers. This will be implemented through two types of contract—net cost contracting and gross cost contracting—to ensure fair compensation of services to be provided by PUV drivers,” the DBM said.
“To ensure the smooth implementation of the program and the proper distribution of the cash subsidies, the LTFRB will be in partnership with priority local government units to facilitate the broad engagement of public transport cooperatives, associations, or corporations operating within their jurisdiction,” it added.
LTFRB executive director Maria Kristina Cassion earlier said the coverage of the program will be expanded to include jeepneys, UV express and other transportation modes as its budget has increased from P3 billion in 2021 to P7 billion this year. —NB, GMA News