AT least 80 transport cooperatives in Northern Mindanao will receive a one-month cash subsidy under the Land Transportation Franchising and Regulatory Board’s (LTFRB) service contracting program, officials said on February 14.
The transport groups signed the service contract agreement on Feb. 14 at the LTFRB regional office, marking the program’s fifth phase, said LTFRB Regional Director Abosamen Matuan.
“This is a pure subsidy for operators. While we provide financial assistance, they are still authorized to collect fares,” Matuan said.
The initiative aims to support modernized transport operators amid fluctuating fuel prices and ongoing unit payments.
“They are struggling financially,” he added.
Each unit will receive P3,000 per 164 kilometers traveled, with mileage tracked via a GPS system. The number of operational days will also be factored into the subsidy calculation.
Matuan highlighted that Northern Mindanao is recognized as a top performer in transport modernization and vowed continued efforts to provide safe and secure transportation.
Luzminda Escovidal, manager of Ponstransco, which operates 30 units on the Calaanan route, welcomed the financial aid.
“We are very grateful for the service contracting, especially now as we adjust to sustain operations under the modernization program,” she said.
In the previous phase, LTFRB allocated P62 million for subsidies.
Matuan expressed optimism that the budget for the current phase would see an increase.
