DOTr to launch ‘net service contracting scheme’ by October

Through this scheme, the government will subsidize PUV operators and drivers
by Leandre Grecia | Sep 17, 2020
PHOTO: Leandre Grecia

More details about the government’s upcoming ‘net service contracting scheme’ under the Bayanihan to Recover as One Act (Bayanihan II) have surfaced, and it appears that things will soon start to look up for our country’s mass transport system.

The Department of Transportation (DOTr) has announced that this new scheme will be implemented by October 2020. Check out the official post below:

Continue reading below ↓

This net service contracting scheme entails that the government subsidizes public transport operations and pay PUV operators and drivers based on vehicle-kilometers traveled, among other “specific performance indicators.” Currently, the Land Transportation Franchising and Regulatory Board (LTFRB) is still finalizing these performance indicators as well as the technology system to be used to monitor and analyze drivers’ performance.

Continue reading below ↓
Recommended Videos

The funds for this scheme will come from the allocated budget under the aforementioned Bayanihan II Law. Through this, the agency hopes that fair compensation among transport workers can be ensured.

Of course, there are standards that need to be met in order for PUV operators and drivers to qualify. The vehicles must be certified roadworthy by the Land Transportation Office (LTO) and must not have been involved in any road crash incident in the last two years.

“The new arrangement of service contracts among public transportation will no longer just depend on the number of passengers being carried. We are ensuring that our drivers will be fully compensated for their services, despite the imposed load limitations,” said Martin Delgra III, chairman of the LTFRB in the official DOTr release.

Continue reading below ↓

He added: “To ensure fairness as well, we will be employing a third-party monitoring entity to evaluate the total vehicle-kilometers operated, the reliability of their services, driver and vehicle quality and customer satisfaction.”

PUVs must still also operate at 50% passenger capacity throughout the ongoing pandemic. But as of this writing, it’s still uncertain what the operating capacities of all modes of public transportation will be, because we’ve yet to hear about the government’s decision on the reduction of social distancing requirements on PUVs.

How exactly this new scheme will play out is something we’ll find out soon enough. While we wait for further updates, tell us what you think about this new scheme in the comments.

For more of our stories on the ongoing crisis, click here. For the latest news and updates on COVID-19, check out reportr.world/covid-19.

See Also

PHOTO: Leandre Grecia
  • Quiz Results

  • TGP Rating:
    /20

    Starts at ₱

    TGP Rating:
    /20
    Starts at ₱