The Department of Transportation (DOTr) has officially removed the Global Positioning System (GPS) device requirement for public utility vehicle (PUV) drivers seeking to join the government’s Service Contracting Program (SCP).
Acting Transportation Secretary Giovanni Lopez announced the policy change during an interview at the Araneta Center Terminal on Monday, citing President Ferdinand Marcos Jr.’s directive to streamline the application process and expand program beneficiaries.
“Dapat maibsan ang hirap ng ating mga operator at tsuper at hindi na makadagdag sa gastos at intindihin sa paglalagay ng GPS. Mas padadaliin natin ito para mas marami ang makasali,” Lopez said.
The SCP offers two payment structures for operators:
- Gross Cost Contracting: The government pays a fixed rate per kilometer traveled, with all fare collections remitted to the government.
- Net Cost Contracting: Operators retain passenger fares and receive a government subsidy per kilometer to help cover operating expenses.
Under the new guidelines for the net contracting model, drivers are now only required to use a QR code to monitor trips, replacing the need for costly GPS hardware.
The program provides significant financial incentives based on vehicle type: bus operators can receive up to ₱100 per kilometer, while modern jeepneys and traditional jeepneys are eligible for ₱40 and ₱30 per kilometer, respectively.