Regio 10 Freerides for APOR-______

Republic of the Philippines

Department of Transportation
LAND TRANSPORTATION FRANCHISING AND REGULATORY BOARD
East Avenue, Quezon City
______________________________________________________________________

SERVICE CONTRACTING AGREEMENT

The service contract is entered into between the LAND TRANSPORTATION

FRANCHISING AND REGULATORY BOARD, a government agency created pursuant
to Executive Order No. 202 S. 1987, with principal office address at East Avenue,
Quezon City, represented by its authorized representative, Regional Director
Aminoden D. Guro herein referred to as “LTFRB”,

-and-

PABAMA CORPORATION, represented by its duly authorized representative,

James Mervin C. Panis, with business address at West Kibawe, Kibawe, Bukidnon
acting on its behalf, and for and on behalf of its drivers herein referred to as the
“OPERATOR”,

-and-

the authorized drivers with the corresponding assigned units referred to as “DRIVER”:

NAME OF DRIVER AUTHORIZED UNIT /

PLATE NUMBER

1. Ruben A. Urbina 101203

2. Jojen M. Mehila ABO-2863
3. Renato F. Barcelona 130103
4. Julieto L. Redosendo 101203
5. Ian J. Bagas 101203
6. Edgardo M. Pagara (Reliever)

CERTIFICATE OF PUBLIC CONVENIENCE DESCRIPTION and OPERATOR:

Route Code:

Route Description: Cagayan De Oro City – Gingoog City

Case Numbers: 2016-2214, 2017-1040 and 2019-2260

 I. DUTIES OF THE PARTIES

A. DUTIES OF THE LTFRB:

1. Monitor the operation of the unit on a daily basis through a SYSTEMS
MANAGER using a Monitoring Platform;
2. Provide a Service Plan;
3. Investigate a resolve any complaints, objections, or representations made
by interested parties relating to the services; and
4. Inspect, examine, and test the unit to assure compliance with all applicable
laws and this contract.

B. DUTIES OF THE OPERATOR

The OPERATOR, in exchange for the compensation paid by the LTFRB under
this contract, agrees to provide the following services as agreed upon:
1. Ensure that free rides are given to health workers upon presentation of
valid identification;
2. To provide three (3) drivers per unit to cover up the twenty-four (24) hours
operation;
3. Ensure that each authorized driver will render a minimum of six (6) round
trips per day;
4. Issue a certification as to list of authorized driver/s;
5. Operate within the prescribed service plan;
6. Cascade the details prescribed in the service plan to its drivers;
7. Guarantee that the units under this contract is roadworthy and is compliant
with all applicable laws;
8. Guarantee that a substitute unit can be provided promptly in case a unit
under this contract becomes unavailable, unfit, damaged or broken;
9. Ensure that the authorized drivers of the units registered under the
program will observe and perform their duties set under the program;
10. Ensure that the drivers are on-board or logged in daily;
11. Ensure that the unit will only carry the load of passenger in compliance with
the existing IATF/DOH/DOTr guidelines and safety protocols;
12. Ensure the distribution of the payout to the DRIVERS in accordance with
the provisions of this contract;
13. Use the payroll format/template provided by the LTFRB;
14. Submit to the LTFRB the copy of the prescribed payroll, duly signed and
received by the DRIVERS on a weekly basis, within a period of three (3)
calendar days from the date of the payout, for proper monitoring and
compliance of this contract and the program;
 15. Certify as to the truthfulness and correctness of the payroll submitted;
16. Account and refund any amount not actually received by the driver/s; and
17. Comply with the provisions of this contract.

C. DUTIES OF THE DRIVER:

The DRIVER, under this contract agrees to provide the following services as
agreed upon:
1. Provide free ride to Authorized Person Outside Resident (APOR) and
health workers upon presentation of valid identification;
2. Operate within the prescribed service plan;
3. Observe and obey all applicable traffic laws and regulations;
4. Ensure that the Android smartphone has Global Positioning System (GPS),
mobile data, and phone application of the Systems Manager, and always
keep these turned on for proper monitoring and compliance to the Service
Plan;
5. Ensure that the unit will only carry the load of passenger in compliance with
the existing IATF/DOH/DOTr guidelines and safety protocols;
6. Report the erring OPERATOR to the LTFRB for any violation or non-
compliance with this contract and the program;
7. Comply with the provisions of this contract.

II. DEMERIT AND MERIT SCHEME

To guarantee the efficiency of the public transport system, a demerit and merit scheme
is implemented. The DRIVERS shall be given penalties and/or incentives based on
service quality, commuter feedback and performance, provided under Annex “D” of this
contract.

The DRIVER, through the OPERATOR, shall be given a maximum of 10% decrease on
his/her daily payouts for the corresponding demerit, and a maximum of 10% increase on
his/her weekly payout for the corresponding merit.

III. TERM OF CONTRACT

This contract shall commence on _______________________________ and will

remain in force until June 30, 2021 or until all the funds allotted are exhausted.

This contract shall be terminated by operation of law unless a written Notice of

Extension is provided for by the LTFRB within a period of five (5) calendar days prior to
the Termination Date.
In case a Notice of Extension of the contract is given within the period above
mentioned, this contract shall be amended accordingly and be extended as agreed
upon by both parties.
IV. COVERAGE

This program shall cover the following PUV, operating under the existing and fixed
routes: (pursuant to Memorandum Circular No. 2021-029)

1. Public Utility Buses (PUBs) - for intra-regional routes ONLY

2. Modern Public Utility Jeepneys (MPUJs) – for intra-regional routes ONLY, except
for route covered by MUCEP.
3. “Consolidated” Traditional Jeep (TPUJ) - for intra-regional routes ONLY, except
for route covered by MUCEP.

V. COMPENSATION AND PAYMENT SCHEME

A. INITIAL SUBSIDY (Php4,000.00)- which shall be paid to the DRIVER upon the
signing of the contract and his/her receipt to the amount binds him/her to the
program.

B. WEEKLY PAYOUT – which shall be paid to the DRIVER based on the

following:

a. Actual Payout – if the threshold kilometer run is not attained. This is

to be computed on a daily basis based on the actual kilometer run
multiplied by the per kilometer fee of Eighty-Two and Fifty cents
(P82.50) for PUBs and Fifty-Two pesos and 50/100 (P52.50) for
smaller modes, as also stated in the Service Plan. The amount of
variable payout shall further be distributed as follows:

i.Drivers – 30%, which will be divided by the drivers; and

ii.Operator – 70%, to cover the equipment’s depreciation and
operational expenses like fuel, maintenance, sanitation, etc.

1. Demerits incurred – a deduction calculated based on the gross daily

payout. The demerit/s incurred shall not exceed 10% of the gross daily
payout.

2. Merit Incurred – additional incentive calculated based on the net weekly

payout. The merit/s incurred shall not exceed 10% of the net weekly
payout.

VI. PENALTY FOR NON-COMPLIANCE WITH THIS CONTRACT:

The service shall be monitored and penalties will be imposed in accordance with the
stated terms and conditions of this contract specifically on the KPIs and other existing
Memorandum Circulars relating to the operation of public land transportation such as,
but not limited to:
 1. LTFRB and LTO Joint Administrative Order (JAO 2014-01): Revised Schedule of
Fines and Penalties for Violation of Laws, Rules and Regulations Governing
Land Transportation Office

2. Memorandum Circular No. 2020-017, Re: Guidelines for Public Transportation for
Areas Under General Community Quarantine (GCQ);

3. Memorandum Circular No. 2020-023, Re: Guidelines for Operations of OFG-

Compliant PUJ Vehicles During the Period of GCQ in Metro Manila;

4. Memorandum Circular No. 2020-025, Re: Guidelines for Operations of UV

Express During GCQ in Metro Manila and Nearby Provinces Entering Metro
Manila;

5. Memorandum Circular No. 2020-026, Re: Guidelines for the Operations of

Traditional PUJs During the Period of GCQ in Metro Manila;

6. Memorandum Circular No. 2020-031, Re: Requirements for Drivers, Conductors

and Passengers Inside PUVs, as amended by Memorandum Circular No. 2020-
033, Re: Amendment to MC 2020-031;

7. Memorandum Circular No. 2020-047, Re: Adjusted Social Distancing

Requirements for PUVs and Compulsory Shuttle Services for NGAs and Private
Offices;

8. Memorandum Circular No. 2020-061, Re: Updated Health Protocol

Requirements for PUVs.

I. MISCELLANEOUS

Related provisions under Board Resolution No. 028, Series of 2021, Department of
Transportation Memorandum dated 28 March 2021, MC 2021-008, MC 2021-029, MC
2021-022, Service Plan or Authorized Route, and other applicable laws, rules and
regulations shall serve as reference under this contract.

This contract is subject to relevant issuances that may later on be issued by the Board.

IN WITNESS WHEREOF, the parties hereto have signed this contract on _____
day of ________ 2021 at the City of ____________________.

LAND TRANSPORTATION (NAME OF OPERATOR)

FRANCHISING AND
REGULATORY BOARD

By: By:
_______________________
James Mervin C. Panis
AMINODEN D. GURO ________________________
Regional Director (NAME OF THE REPRESENTATIVE)
Authorized Representative
 DRIVERS
NAME OF DRIVER SIGNATURE

1. Ruben A. Urbina
2. Jojen M. Mehila
3. Renato F. Barcelona
4. Julieto L. Redosendo
5. Ian J. Bagas
6. Edgardo M. Pagara

___________________________
WITNESS’ NAME
 ACKNOWLEDGMENT

BEFORE ME, a Notary Public for and in the City of __, Philippines this _______day of
________________, 2021 personally appeared the following:

NAME Identification Date and Place

Document Issued

AMINODEN D. GURO ______________ ____________

Regional Director

James Mervin C. Panis

(Name of Authorized representative of _______________ ____________
the Operator)
(Name of the Drivers)

1. Ruben A. Urbina

2. Jojen M. Mehila

3. Renato F. Barcelona

4. Julieto L. Redosendo

5. Ian J. Bagas

6. Edgardo M. Pagara

Known to me and to me known to be the same persons who executed the foregoing instrument
and having acknowledged to me that the same are their free and voluntary act and deed.

IN WITNESS WHEREOF, I have hereunto affixed my hand and notarial seal on these
presents at the place and on the date first above written.

Doc. No.
Page No.
Book No.
Series of 2021.