LGUs now have more say on DOTr’s transport projects

CEBU, Philippines — Local Government Units (LGUs) are now more involved in the Service Contracting Program (SCP) for public transport as the Department of Transportation (DOTr) officially adopts supplemental guidelines to strengthen its implementation.

This comes under Department Order No. 2026-01, signed by Acting Transportation Secretary Giovanni Z. Lopez.

The new order aims to provide clearer and more harmonized rules for the participation of LGUs in the program’s implementation.

The DOTr said the move came after several LGUs expressed interest in directly taking part in the SCP within their respective jurisdictions.

The latest directive supplements Department Order No. 2026-005, or the “Service Contracting Program Guidelines,” which was issued on April 14, 2026.

Under the amended policy, the DOTr, through the Land Transportation Franchising and Regulatory Board (LTFRB) and the Maritime Industry Authority (MARINA), may enter into agreements with priority LGUs.

These agreements will allow LGUs to directly contract qualified transport cooperatives, associations, corporations, and authorized maritime operators to deliver public transport services.

The updated guidelines now cover both land-based public utility vehicles and maritime passenger transport services, expanding the scope of the SCP into a more integrated transport framework.

The program also seeks to support intermodal and multimodal transport systems while promoting environmentally sustainable technologies and improving accessibility for students, senior citizens, and persons with disabilities (PWDs).

The LTFRB and MARINA will implement the land and maritime components of the program within their respective jurisdictions, in coordination with LGUs for localized execution.

The order also requires the timely release of payments or compensation to contracted transport providers and authorized ship operators based on verified service delivery and agreed performance indicators.

Participating LGUs must submit regular monitoring and accomplishment reports to either the LTFRB or MARINA, which will then forward them to the DOTr.

In coordination with the DOTr and identified LGUs, both agencies are also directed to formulate and issue the necessary implementing rules and regulations to ensure the proper enforcement of the updated guidelines.

The SCP is a system in which the government contracts public utility vehicles (PUVs), such as jeepneys, buses, and UV Express units, to operate specific routes and then pays them a fixed amount per kilometer or per completed trip instead of relying solely on passenger fares. -  IHM (CEBU NEWS)