LTFRB confirms DOTr's request for P5B for PUV service contracting expansion

The Department of Transportation (DOTr) has requested the Department of Budget and Management (DBM) for additional funds to expand and extend the service contracting program for public utility vehicle (PUV) drivers and operators.

“Sa second phase [ng service contracting], nag-request na and DOTr ng P5 billion… Marami na ang masasama du'n,” Land Transportation Franchising and Regulatory Board (LTFRB) chairman Vigor Mendoza II said in an interview on Super Radyo dzBB on Saturday.

(In the second phase, the DOTr already requested for P5 billion... This will alllow many to be included in that phase.)

The first phase of service contracting program has an allocated initial budget of P1 billion — P800 million for road transport and P200 for maritime transport — which will begin on April 15 and will run for two weeks. 

Under the program, bus operators and drivers will be paid P100 per kilometer. For the EDSA Busway alone, it covers 50 operators, 500 bus units, and 300,000 passengers daily.

For jeepneys, modern units will be paid P40 per kilometer, while traditional units will be given P30 per kilometer.

There will be 823 routes that will be covered across the nation, 545 of which will be in Metro Manila and Cavite, Laguna, Rizal, as the DOTr said it focused on “filler routes” that connect to other modes of transport such as the railways.

Mendoza said the DOTr and LTFRB will release the guidelines on onboarding interested participants in the service contracting program today, Saturday, April 11, 2026.

“Online filing ito... Those who are interested and willing to join, mayroon tayong guidelines na lalabas... They have to file a document to indicate their willingness to join the service contracting program at 'yung willingness nila to comply du'n sa mga term and conditions ng programa,” he said.

(This is online filing... For those who are interested and willing to join, we will release guidelines... They have to file a document to indicate their willingness to join the service contracting program and their willingness to comply with the terms and conditions of the program.)

Transportation Secretary Giovanni Lopez earlier said President Ferdinand "Bongbong" Marcos Jr. ordered the extension of the service contracting program until July, thus the request for an additional budget.

Marcos announced the PUV service contracting program on Thursday, as the country continues to feel the impact of the higher global prices due to the conflict in the Middle East.

The President said the service contracting program would be implemented during off-peak hours to ensure that commuters would have public transportation even outside the rush hours. —KG, GMA News