The Department of Transportation (DOTr) will roll out a service contracting program on April 15 that will provide commuters with up to 40% fare discounts on select public utility routes, Acting Transportation Secretary Giovanni Lopez said.
Lopez said the 20% fare discount under the program will be applied “on top” of existing discounts for students, persons with disabilities, and senior citizens, effectively allowing combined discounts of up to 40% on routes covered by the initiative, including the EDSA Busway.
“This is the first time we will implement net service contracting with a fare discount component,” Lopez said, noting that previous service contracting schemes did not include additional fare reductions for passengers.
Under the program, government will pay public transport operators a fixed rate per kilometer instead of relying solely on passenger fares.
For EDSA Busway operations, operators will receive about ₱100 per kilometer, while modern jeepney and UV Express operators will be paid around ₱40 per kilometer, and traditional jeepney operators ₱30 per kilometer.
The DOTr said the initiative is funded through ₱1 billion allocated under the 2026 General Appropriations Act, with ₱200 million set aside for the maritime sector and ₱800 million for road-based transport.
Lopez said the maritime component is being developed by the Maritime Industry Authority and the Philippine Ports Authority in coordination with the transport sector, aiming to extend service contracting benefits to sea passengers as well.
For the road sector, the program is expected to cover about 1,000 transport operators and roughly 50,000 public utility vehicles nationwide, including modern and traditional jeepneys, UV Express units, city buses, and EDSA Carousel buses. The agency estimates about 15 million daily passengers will benefit.
On the EDSA Busway alone, officials project around 300,000 daily passengers, with more than 6 million riders recorded in 2025.
The Land Transportation Franchising and Regulatory Board is expected to release the list of covered routes, organized by city and district, along with updated fare matrices.
The service contracting program will cover 823 routes nationwide, including 545 routes in Metro Manila, Cavite, Laguna, and Rizal.
The DOTr said monitoring of the program will be conducted through GPS tracking and manual inspection systems to ensure compliance and proper implementation.
