The government is pushing to launch the country’s first-ever service contracting (SC) program for sea travel, but the Department of Transportation (DOTR) admitted regulators are struggling to stretch a limited budget as they finalize how the aid will be distributed.

At a media briefing on Friday, Acting Transportation Secretary Giovanni Lopez said the Maritime Industry Authority and the Philippine Ports Authority are still crafting the guidelines for the subsidy plan.

“Marina and PPA are still outlining the SC for our maritime sector because this will be the first time that we will have an SC for maritime, and our target here is to benefit the passengers,” Lopez said. 

“It is a bit complicated in the sense that our ships are rolling cargo, so we are looking at whether this will be by nautical miles, per kilometer, or whether we are going to pay the passenger,” he added.

Under the SC program, the DOTr has set aside P1 billion for the rollout—P800 million for the road sector and P200 million for maritime services.

For road transport, the initiative will cover roughly 50,000 public utility vehicle units and 1,000 operators, serving an estimated 1.5 million passengers daily. Commuters will also enjoy a 20-percent fare discount throughout the day.

Lopez said the SC program, which officially launches on 15 April, may still be scaled up, but doing so would require an additional P5 billion in funding.

As for the maritime sector, an on-time rollout next week is unlikely.

“Hopefully, we can start by next week, but it seems we might not be able to because we will really prioritize the islands that have no other means of transportation except by boat or by fastcraft,” Lopez said.

According to Lopez, authorities are also weighing whether to deploy the program in busy ports with alternative transport or prioritize isolated island routes.

“Again, it will be the first time to be implemented in the maritime sector, and the Marina and PPA are already fixing their guidelines,” he added.