The Department of Transportation (DOTr) is seeking an additional PHP5 billion in funding to expand its initial PHP1 billion Service Contracting Program, which subsidizes public transportation drivers and commuters nationwide starting April 15.
Transportation Secretary Giovanni Lopez said on Friday that the department will submit its request to the Department of Budget and Management within the day, following strong endorsement from President Marcos Jr.
With the additional PHP5 billion, Lopez said the DOTr aims to extend the nationwide Service Contracting Program until July this year.
He explained that of the current PHP1 billion fund—sourced from the agency’s budget under the General Appropriations Act—only PHP800 million is allocated for land transportation, as PHP200 million has been set aside for the Maritime Industry Authority (MARINA) for domestic shipping passengers.
The remaining PHP800 million is expected to last only two weeks. The program currently covers 823 routes nationwide, involving around 50,000 public utility vehicles (PUVs) and 1,000 operators of traditional jeepneys, modern jeepneys, UV Express units, buses, and EDSA Carousel buses. It is projected to benefit about 15 million passengers nationwide. The idea is to prioritize feeder routes to the major transport hubs and train stations.
Under the program, drivers receive between PHP30 and PHP100 per kilometer traveled, serving as a guaranteed income top-up on top of regular fare collections. The payment will apply only to a maximum of 100 kilometers per day of travel, but drivers may continue to ply beyond that cap. Payments will be released within three to five days.
Commuters, meanwhile, are entitled to a 20 percent fare discount. This is in addition to the existing 20 percent discount granted to senior citizens, students, and persons with disabilities (PWDs).
Based on their computation, a driver can take home PHP1,000 per day under the program.
To facilitate payments and improve monitoring, the DOTr is encouraging drivers to install GPS devices. With a monthly GPS cost of PHP500, drivers are expected to shoulder only about PHP30 per day.
The program also aims to encourage local government units to implement similar service contracting initiatives as the national government cannot sustain the high cost of subsidizing the public transport over a long period of time. Lopez noted that Manila, Quezon City and Marikina are also implementing their own “Libreng Sakay” programs.
“This service contract program is for sustainability, to ensure driver operators ay magkaroon ng kita everyday, stable income they get everyday, and for commuters mas mabilis ang byahe and meron masasakyan and faster and meron discount,” Lopez said.
