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  • October 16, 2025

Northern Mindanao drivers get DOTr cash subsidy

March 13, 2021 by NewsLine Philippines


CAGAYAN DE ORO CITY – Thousands of public utility vehicle drivers in Northern Mindanao have availed of the Department of Transportation’s (DOTr) service contracting program, the agency’s cash subsidy program, the Land Transportation Franchising and Regulatory Board-10 (LTFRB-10) said Friday, March 12.

Launched last year by the DOTr to help drivers who are coping with the loss in earnings brought by the coronavirus pandemic nationwide, the service contracting has so far benefited 2,867 drivers in the region, said Aminoden Guro, LTFRB-10 regional director.

The pilot areas that were identified when the program was started were Metro Manila, and the cities of Cebu and Davao. Northern Mindanao and other regions were later added.

Guro said the national government has allocated P1.5 billion to the program, which is in line with Republic Act 11494 or the Bayanihan to Recover as One.

The subsidy scheme will run up to June 30, 2021, but it could be extended depending on the availability of funds.

“As long as there is budget, government assistance programs during the pandemic have a chance of getting extended,” Guro said, adding that state subsidies should be continued until the country’s normalizes.

Under the service contracting program, drivers who have undergone training can avail the assistance, first with P4,000 which will be used to purchase a global positioning system-capable smartphone.

An application, go.sakay.ph, will be installed on the phone to keep track of the driver’s daily route.

Under the program, the driver will earn P11 per kilometer within his route during the trip.

The smartphone will record the the driver’s earnings, which the driver can withdraw using the Gcash app.

This financial subsidy for the drivers, Guro said, was released to help them survive due to losses in income that resulted from the health protocols set by the national government in public utility vehicles.

The contracting scheme, he said, will have its merits and demerits, based on his performance on the road.

Among the demerits include unauthorized modification of service plan, unfavorable attitude of driver and conductor, poor maintenance of vehicles, compromised commuter safety, and reckless driving, Guro said.

A driver could be terminated from the program if he is involved in unauthorized out-of-line operations, unauthorized operation of vehicle, and accident causing significant property and physical damage and loss of life, he added.

Among the PUV groups that was on the DOTr’s list was the PN Roa-Canitoan Transport Cooperative (Ponstransco), a collective of drivers and operators serving 10 routes in the city.

Luzminda Lalaine Escobidal, Pontransco chairperson, said all their members have suffered from lack of income due to the pandemic since aside from fewer passengers, the DOTr has imposed a 50 percent seating capacity on all public transport, especially jeepneys, vans, and buses.

And it’s not just the drivers who are bearing the brunt of the financial losses brought by the pandemic, but the operators, as well, she said.

“If our drivers’ income is not enough, he cannot pay the operators the agreed-upon daily rental. We are glad the government has come up with this service contracting program to help our drivers cope with the hardships brought by the pandemic,” Escobidal said.

Before the pandemic, operators usually received P600 to P700 in daily rental from drivers, but at present, that amount has been cut in half.

Escobidal said it is their hope that the subsidy program for drivers will continue so the drivers can recoup their losses.

Filed Under: Business, Northern Mindanao, Top Stories Tagged With: cash for drivers

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