DBM releases P7B for PUV service contracting program

The Department of Budget and Management (DBM) has released PHP7 billion to the Department of Transportation (DOTr) to fund the expanded Public Utility Vehicle (PUV) service contracting program (SCP).

The SCP aims to provide cash subsidies to PUV drivers and owners affected by consecutive fuel price hikes while also ensuring the efficiency and safety of public transport services.

Under the program, operators and drivers who participate in the government's free ridership program will receive a one-time payout of P4,000 and weekly payments based on kilometers traveled per week, with or without passengers.

PUV operators will be contracted via an agreement based on a plan prepared by the Land Transportation Franchising and Regulatory Board (LTFRB).

Drivers will then receive regular performance-based subsidies based on the number of trips made per week, regardless of the number of passengers.

Two types of contracts, net cost contracting and gross cost contracting, will be used to ensure fair compensation for PUV services.