PUV contract scheme pays operators P30 to P100 per km

MANILA, Philippines — Bus and jeepney operators nationwide will receive financial support ranging from P30 to P100 per kilometer starting next week under the government’s service contracting program, one of the measures adopted to help the transport sector cope with soaring fuel prices caused by the Middle East conflict.

Acting Transportation Secretary Giovanni Lopez said traditional jeepneys will receive P30 per kilometer, modern jeepneys and UV Express units will get P40 per km, and buses will be compensated P100 per km starting April 15.

READ: DOTr seeks P5B to fund PUV service contracting program until July

“The concept of service contracting [is that] we’re going to pay [them] per kilometer. For example, jeepneys on the Cubao to Quiapo route: if you’re a traditional jeepney, we’re going to pay you P30 per kilometer, not [exceeding] 100 kilometers,” Lopez said at a roundtable discussion with the Inquirer reporters and editors on Friday.

“Since we’re paying, [drivers] are assured of earnings for as long as they operate their routes,” he added.

According to Lopez, the program is expected to cover 823 routes nationwide, including at least 545 in Metro Manila, Cavite, Laguna and Rizal. “We gave priority to major arteries, those feeder routes […] that will lead us to LRT2, MRT3, LRT, Edsa busways,” he said.

The Department of Transportation (DOTr) has allocated an initial P1 billion to fund the performance-based program for about two weeks: P200 million will be for maritime transports, while P800 million will be for land vehicles.

The DOTr has requested an additional P5 billion from the Department of Budget and Management to keep the program going up to July.

“We wrote a letter today … I asked the President during the last [Unified Package for Livelihoods, Industry, Food and Transport] meeting. He said yes. It’s all about timing and I hope the fund will be released to us immediately before the existing funds run out,” Lopez said.

READ: PUV service contracting being revived to keep drivers on the road

15M commuters

The program is designed to help ensure a stable income for drivers and operators of public utility vehicles (PUVs), since many are now thinking twice about plying their routes because of high fuel costs.

Commuters are also expected to benefit. The government earlier announced that they will enjoy an additional 20-percent fare discount if they take PUVs enrolled in the program.

The discount is on top of the existing cuts for students, senior citizens, and persons with disabilities (PWDs).

The program is expected to benefit 15 million passengers daily, and cover 50,000 PUV units and 1,000 transport operators.

GPS monitoring

But it is still limited to PUVs with fixed routes—buses, jeepneys, carousel buses, and UV express—and not yet applicable to taxis or app-booked rides.

Enrolled drivers will be monitored either through global positioning system (GPS)-based tracking or manual validation, Lopez said.

PUV units equipped with GPS devices will be automatically tracked to verify actual kilometers traveled, allowing for faster processing of payments.

Lopez said the DOTr had coordinated with GPS providers and agreed on a rental fee of P500 per month, to be shouldered by drivers and operators.

For units without GPS, monitoring and validation will be manual and involve field personnel and coordinating agencies, such as the Land Transportation Office, the Land Transportation Franchising and Regulatory Board, and the Metropolitan Manila Development Authority.

“It is better that you have GPS because, first, it will speed up the payment of your service contracting program. Second, it helps prevent corruption,” Lopez explained.

Payments under the program will be expedited; the target is to have the drivers paid “within three to five days,’’ he said.

Fuel subsidy program

In another update, Lopez said P1 billion of the P2.5 billion fund for PUV fuel subsidies had already been disbursed since distribution began on March 24.

The DOTr earlier projected that at least 245,066 drivers and 1,180,783 PUV units can expect subsidies. The amount ranges between P1,500 and P10,000, depending on the mode of transportation.

Only legitimate drivers and operators are entitled the fuel subsidies. But as to unregistered or “colorum” units, the DOTR has provided a list to the Department of Social Welfare and Development (DSWD), where their drivers may still qualify for cash aid worth P5,000 under its Assistance to Individuals in Crisis Situations program. /das