By Benjamin Cuaresma
MANILA — The Department of Transportation (DOTr) has released supplemental guidelines allowing local government units (LGUs) to formally participate in the government’s Service Contracting Program (SCP).
Under Department Order No. 2026-011, the DOTr, through the Land Transportation Franchising and Regulatory Board (LTFRB) and the Maritime Industry Authority (Marina), may enter into agreements with LGUs for the local implementation of the program.
According to the department, several LGUs have already expressed interest in managing the SCP within their respective areas.
The new order seeks to establish clear and harmonized guidelines that will define the responsibilities of participating LGUs while standardizing contracting procedures under the program.
The DOTr said the policy is intended to create a more responsive and organized implementation system for both land and sea transport service contracting.
The department said funding for the implementation of the Service Contracting Program will come from the 2026 General Appropriations Act.
Under the guidelines, participating LGUs will be required to regularly submit monitoring, implementation, and accomplishment reports.
Reports involving land transport operations will be submitted to the LTFRB, while reports concerning sea-based transport services will be handled by Marina before being forwarded to the DOTr.
The LTFRB and Marina are also expected to release additional rules and procedures for local implementation of the SCP in coordination with participating LGUs.
The government’s Service Contracting Program provides financial support and subsidized transport services for public utility vehicles and other transport operators.
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