The Land Transportation Franchising and Regulatory Board (LTFRB) has launched a new online system designed to streamline the implementation of the government’s Service Contracting Program (SCP).
The SCP is a strategic initiative aimed at stabilizing the transport sector by compensating Public Utility Vehicle (PUV) drivers and operators based on total kilometers driven. This performance-based model ensures the continuity of transport services while cushioning the industry against fluctuating oil prices driven by international tensions.
LTFRB Chairman Vigor Mendoza II highlighted that the new digital portal simplifies the application process to a single page. Applicants can register by providing essential details, including:
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Full Name and Case Number
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Vehicle Type and Plate Number
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Route Verification (via an integrated referral tool)
“The process is straightforward: applicants enter their vehicle details and verify their routes through our system,” said Chairman Mendoza. “Once the form is filled out and the terms are accepted, our evaluators will process the application on the same day.”
Upon approval, participants will receive a digital confirmation note and a QR code. The system will also provide a standardized template for the official signage that must be displayed on all participating vehicles for commuter transparency.
To ensure accountability and efficiency, the LTFRB has integrated advanced GPS tracking for all participating units. Unlike previous iterations of the program, the LTFRB will now take a proactive stance by accessing real-time data directly from GPS providers.
“We are moving away from simply waiting for reports,” Chairman Mendoza explained. “By accessing data directly, we reduce processing times and eliminate the risk of collusion between providers and operators. We have dedicated personnel specifically assigned to monitor this data.”
To qualify for compensation under the SCP, participating drivers and operators must adhere to specific service standards, including:
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Daily Operations: Maintaining a minimum of 100 kilometers driven per day.
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Fare Discounts: Providing a mandatory 20% discount to passengers.
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Visibility: Displaying official program signage to help commuters easily identify participating units.
The SCP is expected to provide a significant safety net for the Philippine transport landscape, covering:
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823 PUV routes nationwide.
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50,000 PUV units (including traditional/modernized jeepneys, UV Express, city buses, and the EDSA Carousel).
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1,000 transport operators.
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15 Million estimated commuting Filipinos.
The LTFRB remains committed to modernizing the transport sector through technology, ensuring that both providers and the riding public benefit from a more reliable and efficient public land transportation system.
