Roles of Key Government Departments
- Department of Energy (DOE) supervises and coordinates energy supply plans ensuring adequacy and economy (RA 7638).
- Department of Finance (DOF) formulates fiscal policies and manages government financial resources judiciously (EO 127).
- Department of Budget and Management (DBM) promotes effective utilization of government resources including financial, physical, and manpower resources for national development (EO 25).
Regulatory Mandate of the LTFRB
- The Land Transportation Franchising and Regulatory Board (LTFRB) is under DOTr supervision.
- It administers, enforces, and monitors compliance with public land transportation laws and regulations.
- It prescribes routes, capacities, and operational areas for motorized public land transportation services per approved transportation plans.
Role of the Land Bank of the Philippines (LBP)
- RA 3844 establishes LBP as the Government Financial Institution and official depository of national government funds.
- It manages deposits and supports government financial operations relevant to the Program.
TRAIN Law and Provisions for Fuel Subsidy
- Republic Act No. 10963 (TRAIN Law) introduces tax reforms intended to enhance disposable income and economic activity.
- Part of the incremental revenues derived from TRAIN Law is allocated for social mitigating measures.
- Fuel vouchers are provided as relief for qualified Public Utility Jeepney (PUJ) franchise holders adversely affected by fuel price increases due to excise tax.
Definition and Scope of the Pantawid Pasada Program
- The Fuel Vouchers, Fuel Subsidy Program, and Pantawid Pasada Program are identified as the same program.
- The program grants fuel subsidies to qualified PUJ franchise holders with valid LTFRB franchises.
- Initially implemented for two years (2018–2019).
Funding and Budget Allocation
- DOTr plans to allocate Php997 million for 2018 and Php3.86 billion for 2019 for the Program.
- Funds cover Pantawid Pasada Cards, bank services, management costs, administrative expenses, and other related implementation costs.
- Fund transfers are managed through LTFRB as the implementing agency.
Payment Modalities and Subsidy Amounts
- Fuel subsidies are disbursed through Pantawid Pasada Cards replacing physical fuel vouchers or other mutually agreed methods.
- Subsidy amount per eligible franchise operator is fixed and determined through separate issuances or implementing rules and regulations (IRR).
Implementing Rules and Regulations (IRR)
- DOTr, LTFRB, and LBP are mandated to issue the IRR within thirty days.
- IRR includes:
- Selection, validation, and registration criteria for beneficiary franchise holders.
- Program mechanics and guidelines.
- Terms and conditions regarding the Pantawid Pasada Card including issuance and claims.
- Funding sources, release procedures, and liquidation.
- Specific agency functions and responsibilities.
Agency Responsibilities
- DOTr: Lead agency, policy direction, oversight, Project Management Office establishment, and program monitoring.
- DOE: Coordinates with oil companies and provides petroleum retail data.
- LTFRB: Implements program, handles beneficiary liaison and fund liquidation, provides franchise data.
- DOF: Policy guidance on TRAIN Law implementation and inter-agency coordination.
- DBM: Identifies funding sources, approves budget requests, and facilitates budget releases.
- LBP: Receives funds and assists in program implementation as government financial institution.
Governance and Coordination
- DOTr resolves implementation issues and coordinates with the Program Steering Committee and Technical Working Group composed of DOE, DOF, DBM, LTFRB, and LBP.
- The Steering Committee may amend or supplement the Joint Memorandum Circular (JMC) as necessary.
- External clarifications on the JMC are handled by DOTr in coordination with involved agencies.
Repealing Clause
- All existing inconsistent issuances from DOTr, DOE, DOF, DBM, LTFRB, and LBP are repealed or modified accordingly.
Effectivity of the Joint Memorandum Circular
- The JMC takes effect upon publication in the Official Gazette or newspaper of general circulation.
- Compliance with filing requirements with UP Law Center is mandated under Presidential Memorandum Circular.