With new supplier, LTO set to release 5M driver’s license cards
Amid an ongoing shortage of driver’s licenses, the Department of Transportation and Communications on Friday said the Land Transportation Office (LTO) was set to release five million pieces of license cards over the next 12 months.
This was after DOTC awarded the project for new supplies of driver’s licenses to Allcard Plastics Philippines Inc. after posting the lowest bid of P336.868 million, P37 million lower than the bid of former supplier Amalgamated Motors Philippines Inc. (AMPI)
“We are pleased to report that license cards will soon be available to all LTO offices. We will strive to ensure that the implementation of this project will run smoothly in order to reinstate these basic services provided by the LTO,” said DOTC Secretary Jun Abaya in a statement.
With a new supplier, DOTC said the government would generate savings amounting to P113 million as Allcard’s bid was 25 percent lower than the P450-million budget for the project.
Instead of the original cost of P90 per piece, each card costs around P67 under the new contract.
The procurement of the project for new license cards started on May 22 with three qualified bidders, the other company being the joint venture of DVK Philippines Enterprises and Cardz Middle East Trading LLC with the highest bid of P428.8 million.
In a previous interview with the Inquirer, LTO spokesperson Jason Salvador said the shortage of driver’s licenses was due to the port congestion in Manila which affected their former supplier.
Salvador added that in 2014, the Commission on Audit stopped LTO’s agreement with AMPI because it did not have a valid contract.
The shortage of cards led to the spread of fake driving licenses.
READ: LTO warns vs fixers amid shortage of driver’s licenses
During the bidding process, LTO resorted to issuing temporary licenses with a validity period of 150 days, which they also lifted in March due to the ongoing shortage.
