DBM releases P7B for PUV service contracting

The Department of Budget and Management (DBM) has released P7 billion to expand the Service Contracting Program (SCP) for public utility vehicle (PUV) drivers affected by rising fuel prices.

Under the SCP, operators and drivers will receive a one-time payout of P4,000 and weekly payments based on kilometers traveled per week, with or without passengers.

The program aims to ensure fair compensation through two types of contracts: net cost contracting and gross cost contracting.

The Land Transportation Franchising and Regulatory Board (LTFRB) will partner with local government units to engage public transport cooperatives within their jurisdiction.