The Manila Times
MANILA, Philippines — The Department of Transportation (DOTr) will roll out a P1 billion net service contracting program beginning April 15, offering financial assistance to public utility vehicle (PUV) operators while granting commuters a 20 percent fare discount, Transportation Secretary Giovanni Lopez said Friday. The initiative covers jeepneys—both traditional and modern units—UV Express vans, city buses, and EDSA Carousel buses. It is designed to cushion the effects of rising fuel prices, which transport officials said have forced some operators to cut trips or suspend operations, reducing mobility for commuters. “We know that with the continuous increase in oil prices, it is dangerous for our public vehicles to operate. Some are reducing trips, others are not plying their routes,” Lopez said during a media briefing also attended by Vigor Mendoza II, chairman of the Land Transportation Franchising and Regulatory Board (LTFRB). Of the total fund, P800 million has been allocated for road-based transport, while P200 million will go to the maritime sector—marking the first time the program will include boats and fast craft services. Under the scheme, bus operators will receive P100 per kilometer, while modern jeepneys and UV Express units will get P40 per kilometer. Traditional jeepneys will be paid P20 per kilometer. Participating vehicles are capped at 100 kilometers per day and five operating days per week. Commuters will benefit from a 20 percent fare discount on top of existing reductions for students, senior citizens, and persons with disabilities, effectively lowering fares by as much as 40 percent for eligible passengers. The program will initially cover 823 routes nationwide, including 545 in Metro Manila, Cavite, Laguna, and Rizal. Priority will be given to feeder routes connecting to major transit systems such as MRT-3, where separate fare subsidies are already in place. To ensure compliance, the DOTr will implement GPS tracking for participating units. For traditional jeepneys without GPS devices, the agency said it has coordinated with 22 service providers to reduce monthly rental fees to P500. Manual monitoring will be allowed for operators unable to install the system. Officials also assured faster payouts, with payments expected within three to five days—a significant improvement from previous delays that stretched for months. Operators are required to submit bank or e-wallet details to facilitate quicker disbursements. Despite the rollout, the DOTr acknowledged that the P800 million allocation for the road sector may only last about two weeks due to the scale of the program. The agency has requested an additional P5 billion from the national government to sustain operations. “We are asking for additional funds from the President and the DBM,” Lopez said, expressing confidence that the request would be approved. The department also warned against misuse of the program, saying violators could face suspension of their franchise and removal from the scheme. “Everyone is affected by this crisis. If you take advantage of a fellow Filipino, that is cruelty,” he added. The program will commence with operations along the Edsa Carousel and other key routes linked to mass transit systems. Full guidelines and the list of participating routes will be released by the LTFRB.
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