DOTr to reimplement Service Contracting Program

The Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB) held a press conference on Friday regarding the reimplementation of the Service Contracting Program (SCP).

Transportation Secretary Giovanni Lopez said that President Ferdinand Marcos Jr. ordered the immediate rollout of the SCP as part of efforts to support drivers’ income and ensure continuous public transport service.

“On April 15, we are going to start to roll out our Service Contracting Program”, he noted.

According to the DOTr, a total budget of PHP 1 billion has been allocated for the SCP, with PHP 800 million reserved for road transport and PHP 200 million for the maritime sector. 

Secretary Lopez said that beneficiaries of the road transport fund include more than 1,000 transport operators nationwide and around 50,000 PUV units—covering traditional and modern jeepneys, UV Express, city buses, as well as EDSA Bus Carousel buses.

“Now, if we continue this program, the passengers who will benefit will reach more or less 15 million daily passengers,” the DOTr chief added in Filipino. 

Meanwhile, the government’s net service contracting rate is PHP 40 per kilometer for modern jeepneys and UV Express units, PHP 30 for traditional jeepneys, and PHP 100 for buses operating along the EDSA Busway.

Lopez emphasized that the SCP will be implemented nationwide and will be route-based. Based on LTFRB data, a total of 823 routes will be covered under the program across major roads in the country, including 545 routes in Metro Manila, as well as in Cavite, Laguna, and Rizal.

Lopez, however, pointed out that the SCP is nationwide and route-based, covering a total of 823 routes under the program, including 545 routes recorded in Metro Manila, with Cavite, Laguna, and Rizal.

The DOTr chief said the LTFRB will publish on Saturday the list of routes included in the SCP, along with the announcement of a new fare matrix as a guide for passengers.