Manila: The Land Transportation Franchising and Regulatory Board (LTFRB) is set to launch the Service Contracting Program (SCP) on April 15 to ensure smooth and uninterrupted public utility vehicle (PUV) service across the country.

According to Philippines News Agency, the SCP will implement two different kinds of contracts with PUV drivers and operators: gross type and net type. Under the gross type contract, PUV drivers and operators will provide Libreng Sakay (free ride) to all passengers along a set route in return for payment from the government. In contrast, PUVs with a net type contract will still collect fares from passengers, with the government rewarding an incentive based on the number of trips as agreed upon in the contract.

In a separate statement, LTFRB Chair Vigor Mendoza II indicated that the SCP is part of the national government's initiatives led by President Ferdinand R. Marcos Jr. to extend maximum assistance to both commuters and the PUV sector. Mendoza emphasized that the areas of operations for the service contracting were chosen based on data analysis of commuter traffic volume and interconnectivity to mass transport systems.

In Metro Manila, the SCP will cater to passengers of the EDSA Bus Carousel, as well as modern and traditional jeepneys that operate along routes passing LRT and MRT stations and other major transportation hubs. These routes have been prioritized due to their role in supporting rail transport connectivity, serving high passenger demand corridors, improving commuter mobility, and reducing traffic congestion in key areas.

Moreover, the SCP will also extend to various routes in other large cities such as Davao City and Cagayan de Oro City. These routes were selected based on their ability to maximize the impact of limited funding, support high-ridership corridors, and ensure service continuity in major urban areas outside Metro Manila.

Established in 2023 under LTFRB Memorandum Circular No. 2023-048, the SCP aims to provide financial assistance to PUV drivers and operators. Qualified beneficiaries include consolidated transport service entities with no less than 10 units of traditional or modern jeepneys, Filcabs, or UV Express, provided they have a valid certificate of public convenience or provisional authority, are registered with the Land Transportation Office, and possess personal passenger accident insurance.