Recto tells transport officials to work with LGUs for ‘seamless’ service contracting program

by Rachel Morgan News Editor

Executive Secretary Ralph Recto has directed transport authorities to collaborate with the Department of the Interior and Local Government (DILG) and local government units (LGUs) to ensure the effective implementation of financial assistance for the transportation sector.

Coordination Across Agencies

The directive, issued following a meeting with key government officials on Wednesday, aims to streamline the rollout of support measures. Recto emphasized the need for LGUs and the DILG to work alongside the Department of Energy (DOE), the Department of Transportation (DOTr), and the Land Transportation Franchising and Regulatory Board (LTFRB).

Did You Know? The program began in Metro Manila and is slated for implementation throughout the country.

According to a press release, the coordinated effort will focus on two key initiatives: fuel subsidies for jeepney and UV Express operators and drivers through the Pantawid Pasada Fuel Subsidy program, and the Service Contracting Program (SCP) for buses and jeepneys on select routes.

Fare Discounts and Subsidies

The SCP aims to provide a 20% fare discount for the riding public. Under the program, public utility vehicle (PUV) operators and drivers will receive a subsidy of P40 to P100 per kilometer to support offset losses due to fluctuating oil prices.

From Instagram — related to Department, Recto
Expert Insight: A “whole-of-government” approach, as described by Recto, suggests an attempt to overcome potential logistical hurdles and ensure broader access to these crucial support programs. Effective collaboration between national and local entities will be key to the program’s success.

Recto stated that the DOTr and LTFRB must ensure that eligible bus and jeepney operators and drivers in the National Capital Region (NCR) can access financial support under the SCP and, in turn, offer the mandated fare discount.

Frequently Asked Questions

What is the purpose of this directive?

The directive aims to ensure the seamless implementation of assistance packages for the transportation sector, specifically fuel subsidies and the Service Contracting Program.

What is the purpose of this directive?
Department Transportation Department of Energy

Which agencies are involved in this effort?

The Department of the Interior and Local Government (DILG), local government units (LGUs), the Department of Energy (DOE), the Department of Transportation (DOTr), and the Land Transportation Franchising and Regulatory Board (LTFRB) are all involved.

How many people are expected to benefit from this program?

The administration’s transport aid program is expected to benefit 50,000 drivers of PUVs, operated by about 1,000 operators.

Will the nationwide rollout of this program face challenges, and how might those be addressed?

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