The Department of Transportation (DOTr) has officially announced the launch of a two-week service contracting program specifically designed for public utility vehicle (PUV) drivers and operators, set to commence on April 15, 2026. This initiative aims to provide financial support and enhance the efficiency of the public transportation sector across the nation.
Financial Allocation and Payment Structure
According to DOTr Secretary Giovanni Lopez, the national government has allocated a substantial budget of P1 billion for this program. Of this total, P800 million is earmarked for road transportation, while P200 million is dedicated to maritime transport. Under the program, bus operators and drivers will receive P100 per kilometer traveled. Modern jeepneys and UV Express vehicles are entitled to P40 per kilometer, and traditional jeepneys will get P30 per kilometer.
Fare Discounts for Passengers
In addition to supporting drivers and operators, the program includes significant benefits for passengers. Commuters will receive a 20 percent discount on fares, which is in addition to the existing 20 percent discount already available for senior citizens, persons with disabilities (PWDs), and students. Secretary Lopez confirmed that the agency will release the new fare matrix on Saturday, April 11, 2026, to ensure transparency and public awareness.
Scope and Impact of the Program
Secretary Lopez revealed that this service contracting program is expected to benefit approximately 1,000 transport operators, 50,000 PUV units, and an estimated 15 million passengers daily. The initiative covers a vast network of 823 routes nationwide, including 545 routes in Metro Manila, Cavite, Laguna, and Rizal, all of which are connected to rail systems to promote integrated transportation.
Monitoring and Implementation
To ensure effective implementation, several key agencies will oversee the program. The Land Transportation Franchising and Regulatory Board (LTFRB) 7, Land Transportation Office (LTO), Philippine Coast Guard (PCG), and Metropolitan Manila Development Authority (MMDA) will monitor operations using global positioning system (GPS) technology or manual counting methods. This multi-agency approach aims to maintain accountability and smooth execution.
GPS Integration and Cost Support
Secretary Lopez has already engaged with GPS providers to offer more affordable devices for PUV operators, priced at P500 per month. The program itself will cover this expense, encouraging drivers and operators to adopt GPS units for faster and more accurate payment processing. Lopez emphasized the importance of this technology in streamlining operations and ensuring timely compensation.
Future Expansion Plans
Looking ahead, the DOTr is seeking an additional P5 billion to expand the program further. This request is driven by the continuous rise in fuel prices, which poses ongoing challenges for the transportation sector. The expansion aims to extend the benefits and reach of the service contracting initiative, providing sustained support to drivers, operators, and passengers alike.
