The expansion of the government’s public utility vehicle (PUV) service contracting program is being slowed by budget constraints and payment system issues, the Land Transportation Franchising and Regulatory Board (LTFRB) said Tuesday.
In an interview with DZRH’s Dos Pos Dos, LTFRB Chairman Atty. Vigor Mendoza II said that one of the main bottlenecks is the lack of proper bank accounts or e-wallets under cooperative names, which is delaying payments to drivers.
“Siguro mga 40 percent ng mga kooperatiba ay walang bank account o e-wallet under the name of the cooperative,” Mendoza said. He added that many groups submit accounts registered under individual officers, which is not allowed under program rules.
Mendoza said the issue is causing only a “slight delay” and could be resolved within days once proper accounts are set up.
He further explained that route coverage is limited by budget allocation under the General Appropriations Act (GAA), prioritizing feeder routes connected to major transport infrastructure. He added that expansion depends on additional funding.
“Ang ating budget ay saklaw ng GAA, yung General Appropriations Act ng Kongreso, meron mga requirements. Yun po ang filtering process namin. Yung requirements na binigay ng Kongreso sa amin kung saan namin pwede magamit itong pondong ito.”
Under the program, participating drivers are estimated to earn between ₱1,000 and ₱1,500 daily, with boundary fees removed.
The program is currently funded by an ₱800-million allocation, which officials expect to be fully utilized within weeks due to strong participation. Authorities are also awaiting a proposed ₱5-billion supplemental budget, though its source has not yet been finalized.
“Hindi ko na alam kung saan manggagaling itong dagdag na budget. Pero sana dumating na.”
Mendoza said the LTFRB aims to expand coverage to more routes once additional funding becomes available.
The chairperson further explained that while about 32,000 transport operators have applied over the weekend for inclusion in the program, only around 19,000 have been approved so far. Vehicles under the program are also required to display signage identifying their participation.
Passengers receive a 20% fare discount under the scheme, which may be combined with existing discounts for students, senior citizens, and persons with disabilities, effectively increasing total reductions in some cases.
