The proposed 2023 budget for the Department of Transportation (DOTr) has no funding for the service contracting or “Libreng Sakay” program, despite rising fuel costs.

During the House Committee on Appropriations’ deliberations on the agency’s budget on Tuesday, the Department of Budget and Management (DBM) explained that the free ride program is not a regular project of the government.

"Since this is a non-recurring item under the DOTr budget and it is a congressional adjustment, we did not recommend the inclusion of such. But we defer to the wisdom of Congress if they want to include it," DBM Director Maria Cresencia Sunga said.

"In view of the limited fiscal space, we need to prioritize which among competing priorities of the government we should be funding based on our assumptions," DBM’s Maria Cecilia Socorro Abogado added.

The DOTr appealed to lawmakers for funds to support the program, and several solons manifested their support.

"Nagrequest kami ng P12 billion, ngunit sa kasamaang palad hindi naisama sa NEP. Kami ay dumudulog, at humihingi ng tulong para sa ating mga kababayan, kung maaaring magakroon ng congressional amendment sa pondo ng kagawaran ng transportasyon para sa taong 2023, magkaroon ng pondo ang service contracting," Transportation Secretary Jaime Bautista said.

"Walang katumbas na programa ang kagawaran ngayon na pareho ang impact ng service contracting, dahil sa service contracting, nakikinabang ang drivers, nakikinabang ang operators, ngunit higit sa lahat nakikinabang ang pasahero. Dahil yung araw-araw nilang matitipid sa pamasahe ay maaari na nating i-consider na dagdag na kita sa araw-araw," DOTr Usec. Mark Steven Pastor added.

"I would urge our colleague if we can reconsider the P12 billion kung mayroon tayong pwedeng pagkunan. Malaking bagay ito sa ating commuting public, na matulungan sila at this time na pandemic pa at sa pagtaas ang fuel," Agri Party List Rep. Wilbert Lee said.

Marikina 2nd District Rep. Stella Quimbo, meanwhile, asked about DOTr’s plans to help public utility vehicle drivers face fuel price hikes. Bautista said among the programs they are considering is a net contracting service, where the government will subsidize fares.

"Hindi ‘yung gross contracting service na ibibigay natin na libre lahat ang pamasahe. Pwede natin i-subsidize, katulad ng naging program natin in the past, we call it net contracting service, na we offer subsidy to certain groups of operators, so they can operate profitably without increasing fares,” Bautista explained.

Another possibility, he said, is purchasing buses and having the private sector operate them on a Public-Private Partnership basis.

“Last year, we spent like P7 billion dito sa net contracting na ito. Ang pinakamalaki po rito ay ‘yung libreng sakay. Posible po. We can use that fund to buy the buses and have it operated by the private sector on a PPP basis. They can maintain the operations. They can operate, do the maintenance, and collect a reasonable fee, para mapakinabangan ng ating pasahero. Posible rin na tulad ng ginagawa ng other countries, for example, Singapore, it is funded and operated by the government. Parang walang competition, talagang service lang ito para sa ating mga pasahero. We can implement programs to see to it that it will be more efficient. Tulad sa Singapore, pati ‘yung oras ng pagdating ng bus, makikita sa apps,” Bautista added.

The P5-billion budget for 2023 fuel subsidy to jeepney operators and drivers requested by the DOTr was also slashed by the DBM to just P2.5 billion.

Meanwhile, funding to fix the Land Transportation Office’s backlog in license plates was reduced to P4.7 billion from the requested P6.6 billion.

The LTO said this amount would address only 70-80 percent of the backlog.

RESETTLEMENT FOR FAMILIES AFFECTED BY RAILWAY PROJECTS

Gabriela Party List Rep. Arlene Brosas is worried over the meager budget allocated for the resettlement of families that will be affected by railway and subway projects next year.

“Ang pinangangambahan natin, kung ikukumpara ito sa bilang ng tirahang ipapatayo gamit ang kakarampot na P2.5 billion para sa pabahay ng 2023 na nakalagay sa NEP, kulang po yun, 3,500 lang ang mapapatayo nito,” she said.

DOTr Undersecretary Cesar Chavez told lawmakers that affected families along the Manila-Calamba stretch of the North-South Commuter Railway will get a monthly interim rental subsidy ranging from P3,000 to P10,000 for a period of one and a half years. That’s on top of the just compensation they will receive for their property.

“Unlike other resettlement, ngayon ho very clear, ‘yung Manila to Calamba, this is jointly funded by the Asian Development Bank and the Japan International Cooperation Agency. Ang maganda sa ADB, maganda ang social safety nets na binigay nila. Maliban sa dapat maliwanag kung saan sila ire-relocate, number 2, dapat bayaran din ang structures kung saan sila naninirahan ngayon, at kung sila ay may pananim… dapat bayaran din,” Chavez said.

“Inaasahan namin na mapapabilis ang proyekto, dahil under the Asian Development Bank, loan agreement with the Philippine government, mayroong P3,000, P5,000 to as high as P10,000 na interim rental subsidy. Sa bawat ISF po na identified from Manila to Calamba, about 52 kilmeters po yan, bibigyan ng Landbank ng ATM para makapag-relocate na sila. That’s 1.5 years. Isang taon at kalahati ang panahon ng rental na ibibigay sa kanila, habang itinatayo at inaasikaso ng NHA ang paglilipatan sa kanila,” he added.

The DOTR said the government has so far identified 16,000 available units for the relocation of informal settler families that will be affected by the project, which estimated to be at around 6,200.

PROJECT DELAYS

Despite the budget cuts for several programs, the DOTr’s proposed 2023 budget is 120% higher than this year, which is at P167.12 billion.

Quimbo expressed concern over the DOTr’s ability to utilize it’s budget on time, noting that in the past years, it is among the government agencies with the lowest budget utilization rates.

Manila 6th District Rep. Bienvenido Abante Jr. even raised the delays in DOTR’s implementation of 14 foreign assisted projects in 2021.

"Is it true that the Commission on Audit has flagged the Department of Transportation over P128.42 million in additional fees incurred due to setbacks in 14 foreign assisted projects worth P1.61 trillion?” he asked.

“That is correct. Even if a project is implemented on time, we still pay commitment fees for the undisbursed amount of our loan. Two major causes of delay are number one, right of way acquisition, and number two would be our procurement timelines. Both of which were affected by the pandemic, particularly in 2020 and 2021, when activities relating to procurement and right of way acquisition were not able to proceed,” DOTr Usec. Timothy John Batan explained.

Quimbo, meanwhile, noted that a whopping P112 billion of DOTR’s programmed funds for 2023 will only go to taxes. She sought DOTr’s commitment to utilize its budget on time.

“So pag sinasabi natin na ang laki ng budget, P167 billion, sa totoo lang maliit, because a big chunk of this P167 billion, is really just going to have a neutral impact on the economy. Of course mayroon pa kayong unprogrammed appropriations kasi mayroong about P400 billion that will come in for loans, but totoo lang doon manggagaling yung multiplier effect, hindi rito sa nakikita natin na P167b illion," she added.

“Every year, pag dumarating ang DOTr dito, talagang kayo ang pinakamababang utilization rate, taon-taon. Walang mintis, Kayo ang pinaka nasa dulo. I was personally very happy to see vast improvements in the utilization rate. Pero nag-aagam-agam pa rin considering na may malaking loan na darating for purposes of funding itong railway projects. Sana may commitment from Sec. Bautista na no such substantial delays will happen in the future,” Quimbo told the DOTr.

“We commit to do our best to see to it that all these projects are implemented on time,” Bautista replied.