DOTr awaits release order for P1-billion service contracting program

MANILA, Philippines — The Department of Transportation (DOTr) is waiting for the Department of Budget and Management’s (DBM) special allotment release order (SARO) for P1 billion to fund the government’s service contracting program.

In a press briefing in Camp Crame on Tuesday, DOTr Secretary Giovanni Lopez noted that their department had requested for the SARO last March 16 as part of the measures to mitigate the impact of rising fuel costs.

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The service contracting program provides subsidies for drivers in exchange for providing transportation for commuters.

“Once we’re done with the fuel subsidy program, our timing should be more orderly and efficient so that we can start rolling out the service contracting… Once we get the SARO, by April 15, we are ready to roll it out,” Lopez explained partly in Filipino.

“The beauty of service contracting is that not only will drivers and operators benefit but commuters will also benefit since the government will pay for it,” he added.

He further noted that around P300 million of the SARO will be allocated specifically for the maritime sector in compliance with the 2026 national budget.

The rollout of the fuel subsidy began earlier this March as gas prices increased due to the ongoing conflict in the Middle East. /jpv