MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) officially rolled out yesterday its new subsidy program to aid an estimated 60,000 public utility vehicle (PUV) drivers affected by the COVID-19 pandemic.
The service contracting program is seen as a new business model that will help address both mobility and feasibility problems now being faced by the sector, according to the LTFRB.
The program will provide subsidies to around 60,000 drivers in Metro Manila, Metro Cebu and Metro Davao initially.
“The program is being undertaken in light of the Bayanihan to Recover As One Act to ensure safe, efficient and financially viable operations of public transportation under these unusual circumstances,” LTFRB-Region 4 director Renwick Rutaquio said during the launch.
Around P5 billion was allotted for the program for the transport sector, which has been critically affected by the government lockdown imposed in March to curb the spread of COVID-19.
Many PUV drivers were left jobless and begging on the streets after the government shut down public transport for several months.
A dry run along some routes such as Tandang Sora, Novaliches and EDSA will be conducted starting this weekend and the program will be officially implemented by next week.
The subsidy will be based on kilometers traveled per vehicle, depending on the type of transport and its compliance with agreed-upon performance indicators.
Regular fare will still be collected to ensure a steady revenue for drivers and operators and at the same time assuring service for commuters.
Compliance with indicators in the service plan will be through a third-party systems manager, the LTFRB said.
Incentives and penalties will be given to drivers based on merit and demerit points under the program.
LTFRB-National Capital Region director Zona Tamayo said that about 60 percent of the beneficiaries of the program will be public utility jeepney drivers.