DBM releases P7-B for PUV service contracting program

The Department of Budget and Management (DBM) has released PHP7 billion to the Department of Transportation (DOTr) for the implementation of the service contracting program (SCP) which provides cash subsidies to affected public utility vehicle (PUV) drivers/owners, while also ensuring the efficiency and safety of public transport services amid the current health and economic crisis.

Under the SCP, 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.

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.

The SCP forms part of the government’s targeted assistance to help cushion the impact of the consecutive oil price hikes to vulnerable sectors.

The DBM will continue to support other government agencies with the timely releases of the appropriate budgetary needs for the execution of programs that will serve the Filipino people.