The Land Transportation Franchising and Regulatory Board (LTFRB) announced that it will begin implementing its service contracting program for public utility vehicles (PUVs) on April 15, covering selected routes in Metro Manila, Davao City, and Cagayan de Oro City.
LTFRB Chairman Vigor Mendoza II said Tuesday that the agency is finalizing guidelines for the program’s rollout. Under the scheme, PUV operators will be compensated by the government through subsidies rather than relying solely on passenger fares. The initiative aims to provide financial stability for operators while ensuring reliable transport services for commuters.
“The areas of operations of the service contracting for land-based public transportation was based on the data analysis on commuter traffic volume and interconnectivity to mass transport system,” Mendoza explained.
“These routes were prioritized as they support connectivity to rail transport systems, serve high passenger demand corridors, improve overall commuter mobility, and help reduce traffic congestion in key areas,” he added.
The LTFRB confirmed that funding will come from the 2026 General Appropriations Act. Fuel subsidies for PUV operators will also continue, alongside efforts to push for reduced toll fees on major expressways.