No fare discounts under 2023 Service Contracting Program — LTFRB

Metro Manila (CNN Philippines, November 30) — Commuters will not be given fare discounts under the Land Transportation Franchising and Regulatory Board's (LTFRB) 2023 Service Contracting Program.

LTFRB Technical Division chief Joel Bolano said the ₱699 million program can only guarantee the availability of public utility vehicles (PUVs) throughout the day.

«We are bound by the Commission on Audit. Kailangan every discount, according to COA, namo-monitor namin,» Bolano said. «Kung traditional jeepney ka, bawat sakay wala tayong way to monitor kaya inaaral pa rin namin.»

[Translation: We are bound by the Commission on Audit. We need to monitor every discount according to COA. If you're a traditional jeepney, we don't have a way to monitor every ride, so we're still learning the process.]

Since the program targets to benefit PUV drivers and operators involved in the program, they need to comply with certain requirements — including the availability of 80% of on-board vehicles. It also requires participating vehicles to run a specific number of kilometers per day.

Under this year's program, a net service contract will also be implemented — meaning operators are paid an agreed-upon amount covering a portion of the operational and maintenance costs to ensure fair compensation for the services rendered on top of the farebox collected.

This is the first year of implementation where local government units will be involved in the program.

According to Bolano, operators who want to take part are already in the process of complying with the requirements.

The LTFRB said it intends to start the program before the year ends.