WebClick Tracer

May 30, 2024

Cash assistance to PUV drivers comes out as ‘service contracting program’

Budget officials on Tuesday released P7 billion in cash subsidies helping public utility vehicle (PUV) drivers manage the difficulties presented by the ongoing pandemic.

The cash assistance is coursed through the Department of Transportation (DOTr) and comes out as a service contracting program (SCP) designed by the Land Transportation Franchising and Regulatory Board (LTFRB).

Under the SCP, PUV drivers will receive regular performance-based handouts “based on the number of trips made per week, regardless of the number of passengers.

“This will be implemented through two types of contract—net cost contracting and gross cost contracting—to ensure fair compensation of services to be provided by PUV drivers,” the government agency said.

The LTFRB partners with so-called priority local government units (LGUs) as links to the various transport cooperatives, associations or corporations under their jurisdiction.

“The SCP forms part of the government’s targeted assistance to help cushion the impact of the consecutive oil price hikes to vulnerable sectors.

“The DBM will continue to support other government agencies with the timely releases of the appropriate budgetary needs for the execution of programs that will serve the Filipino people,” it said.