Public Utility Vehicle Modernization Program

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Type of utility vehicle in Philippines

Public Utility Vehicle Modernization Program
Department of Transportation (Philippines).svg
Date 2017-2020 (Projected)
Type Transportation program
Cause Safety and environmental concerns
Target Phase-out and replacement of all PUVs 15 years or older
Budget ₱2.2 billion[1]
Organized by

The Public Utility Vehicle Modernization Program (PUVMP) was launched by the Department of Transportation of the Philippines in 2017, with the goal of making the country’s public transportation system efficient and environmentally friendly by 2020. The program calls for the phasing-out of jeepneys, buses and other Public Utility Vehicles (PUVs) that are at least 15 years old and replacing them with safer, more comfortable and more environmentally-friendly alternatives over the next three years. Currently, there are 220,000 jeepney units operating throughout the country.[2]

Replacement vehicles are required to have at least a Euro 4-compliant engine or an electric engine to lessen pollution. Some proposed requirements include CCTV cameras, an automated fare collection system, speed limiters and GPS monitors.[3]

The Land Bank of the Philippines estimates that each jeepney replacement will cost around ₱1.4 million to ₱1.6 million.[4] However, based on an interest rate of 6% per annum and a payment period of 7 years, the actual cost of a jeepney reaches ₱2.1 million.[5]

While reception among the general populace have been positive,[6] some transport groups have criticized the program as it might lead to losses of jobs and businesses.[7][8]

The program aims to change the current franchising system, revise and introduce new routes and provide education to jeepney drivers.

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The program, according to the DOTr, has the following goals:

  • Safe and comfy transport
  • Reliable travel time
  • Disciplined and competent drivers
  • Fair regulations
  • Spacious jeepneys

Moreover, the government believes that the program’s environmental and economic benefits would be felt by commuters, operators, and drivers alike: commuters will profit from the changes in routes and optimized networks. Because of the reduced traffic congestion and pollution, drivers will have higher monthly pay and benefits, as well as better health. Finally, with less traffic, operators will be able to take more passengers and save money under the franchising plan by pooling services.[9]

Implementation[edit]

The Omnibus Franchising Guidelines (OFG) were signed by Transportation Secretary Arthur Tugade in June 2017, and they altered the process of issuing jeepney franchises by implementing new route planning criteria and establishing new vehicle and driver standards.[10]

Under the OFG, Local Government Units are required to come up with their own Local Public Transport Route Plans.[11]

These plans will be based on existing and projected travel patterns and will be considered by the Land Transportation Franchising and Regulatory Board in issuing new franchises. Single-unit operators will no longer be granted franchises.[12]

Crackdown on dilapidated vehicles[edit]

In January 2018, Metro Manila’s Inter-Agency Council on Traffic (i-ACT) launched operation ‘Tanggal Bulok, Tanggal Usok’, targeting vehicles for environmental and safety violations such as smoke belching, worn out tires and lack of seat belts. As of January 23, a total of 1087 vehicles, mostly Public Utility Jeepneys (PUJs), were flagged down, apprehended and issued summons. To accommodate affected passengers, the Armed Forces of the Philippines have been offering free rides.[13]

Prototypes[edit]

In October 2017, the Land Transportation Franchising and Regulatory Board (LTFRB) and the Department of Trade and Industry (DTI) presented sixteen prototype jeepneys. These models were all locally manufactured and based on guidelines set by the DOTr. Features include:

  • Euro 4 engines
  • CCTV Cameras
  • GPS
  • Automated fare collection systems
  • Front-facing seats
  • New exits on the right-hand side[14]

Financing[edit]

An estimated ₱1.5 billion will be given to transport corporations and cooperatives to purchase new PUVs through the Development Bank of the Philippines’ Program assistance to Support Alternative Driving Approaches (PASADA). The program will feature a 5-percent equity for vehicle purchase, 6-percent interest rate and seven-year repayment period.[15][16]

Under PASADA, a maximum of 95 percent of the cost of the vehicle, and a maximum of 75 percent of the cost of the support facilities comprise the total loan per borrower. The government will also offer a maximum subsidy of ₱80,000 to cover the equity payment.[17][18]

A Memorandum of Understanding (MOU) with the Land Bank of the Philippines was also signed by the DOTr to set up a ₱1 billion financing for PUJs via the Special Environment-Friendly and Efficiently Driven (SPEED) Jeepney Program.[19]

Phases[edit]

According to the DOTr, the proposed implementation time frame is as follows:[9]

  • Q4 2017 Pilot program in Metro Manila
  • 2018–2019 Metro Manila, Metro Cebu, Metro Davao
  • 2019–2020 Highly Urbanized Cities, Rest of the Country

Reception[edit]

Support[edit]

At least twenty government agencies and twenty-four transport groups from across the country supported the launch of the program.[20] Among transport groups that supported the initiative are the Panta Transportation Network, Federation of Jeepney Operators and Drivers Association (FEJODAP), 1-United Transport Koalisyon (1-UTAK), Alliance of Transport Operators and Drivers Association of the Philippines (ALTODAP), and Coalition of Operators, Drivers, Employees, Atbp. (CODE-X), and the Philippine Confederation of Drivers and Operators – Alliance of Concerned Transport Organizations (PCDO-ACTO).[21][22][23] Pangkalahatang Sanggunian Manila & Suburbs Drivers Association (PASANG-MASDA) also expressed support. Their president Obet Martin stated, “it was high time for the country to replace the current jeepneys to more modern and more efficient units”.[24]

A 2019 study also showed that majority of commuters prefer to ride an e-jeepney than a conventional jeepney in areas where it is available, as it provides a safer, environment-friendly, and more comfortable ride.[6]

Criticism[edit]

Members of a jeepney driver’s association protest the PUV Modernization Program in Cebu City

Even before its launch, the program was received negatively by various transport groups. While Senate Bill 1284 and House Bill 4334, the program’s enabling legislation, were still pending in February 2017, some jeepney drivers launched numerous strikes and demonstrations in Metro Manila and in key cities throughout the country.[25]

According to Kilusang Mayo Uno (KMU) and Pinagkaisang Samahan ng Tsuper and Opereytor Nationwide (PISTON), the ₱1.4 million to ₱1.6 million cost of new jeepneys will adversely affect the livelihood of 600,000 public utility jeepney (PUJ) drivers and 300,000 small operators.[26] For, drivers, operators, and other transport stakeholders, the modernization may result in possible losses of jobs and businesses.[27] The group claims that commuters will also be hit with an increased fare of at least ₱20.[26]

Cooperative Development Authority has noted that jeepney driver-operator groups have not been included in technical working groups for the jeepney modernization program.[28] Vice President Leni Robredo said jeepney drivers and operators, as well as the riding public, should be allowed to take part in public consultations regarding the program.[28]

Senator Grace Poe, chair of the Senate public services committee, has expressed doubt over the governments readiness to implement the program nationwide. According to Poe, the government will have to shell out ₱415 billion for full implementation of the scheme, far more than the ₱2.26 billion it approved. She has suggested that the PUV Modernization Program be implemented in select cities instead.[29]

Senator Poe and Senate Majority Leader Vicente “Tito” Sotto III have called for a “middle ground” solution, saying that old but road worthy PUVs should be allowed to operate. However, the DOTr has given no clear commitment to their suggestion.[30] Senator Franklin Drilon criticized the program’s mismanagement and “hodge-podge planning”.[31]

Transport and youth groups, together with SCMP, calling for economic aid and calling out against oil price hike and jeepney phaseout amidst COVID-19 pandemic.

In the House of Representatives, Representative Sarah Elago noted how the program displaces single franchise owners, owing to provisions in the law requiring franchises to own a minimum of 20 units, amounting to P7 million of capital.[32] Another youth group, Student Christian Movement of the Philippines (SCMP), slammed President Duterte on Independence Day 2021 as a “puppet” enforcing neoliberal policies such as jeepney phaseout.[33]

Protests[edit]

The transport group Stop and Go Coalition held a strike on September 24, 2017.[34] On October 16 and 17, PISTON held a two-day transportation strike.[35] In a press statement, Alliance of Concerned Transport Organizations President Efren de Luna stated that their group did not join the transport strike as they found that PUV modernization wants to ensure the security of passengers and to have an environmentally sustainable mode of transportation.[23]

See also[edit]

References[edit]

  1. ^ “Gov’t allots P2.2 billion to subsidize PUV modernization –LTFRB”. GMA News Online. Retrieved February 22, 2018.
  2. ^ Talabong, Rambo (June 19, 2017). “DOTr launches modernization program for jeepneys, buses”. Rappler.com. Retrieved October 16, 2017.
  3. ^ Francisco, Katerina (October 16, 2017). “EXPLAINER: What’s the reason for the 2-day transport strike?”.
  4. ^ “Jeepney modernization program kicks off next month”. CNN Philippines.
  5. ^ “Poe: Math shows operators lose in gov’t bid to modernize jeepneys”. December 10, 2017.
  6. ^ a b Agaton, Casper Boongaling; Collera, Angelie Azcuna; Guno, Charmaine Samala (2020). “Socio-Economic and Environmental Analyses of Sustainable Public Transport in the Philippines”. Sustainability. 12 (11): 4720. doi:10.3390/su12114720.
  7. ^ “Why some transport groups oppose jeepney phaseout”. Philstar. September 26, 2017.{{cite web}}: CS1 maint: url-status (link)
  8. ^ KG (September 25, 2017). “Transport group holds strike to oppose jeepney phaseout”. GMA News. Retrieved October 17, 2017.{{cite web}}: CS1 maint: url-status (link)
  9. ^ a b “14 THINGS YOU NEED TO KNOW ABOUT PUBLIC UTILITY VEHICLES (PUV) MODERNIZATION PROGRAM”. DEPARTMENT OF TRANSPORTATION – PHILIPPINES FACEBOOK PAGE. Retrieved October 16, 2017.
  10. ^ Patena, Aerol (June 20, 2017). “DOTr launches PUV Modernization Program”. Interaksyon. Retrieved October 16, 2017.
  11. ^ Kasilag, Jacob (June 30, 2021). “Public Utility Vehicle Modernization Program In The Philippines: Definition, Purpose and Operation”. philmotorlaw.{{cite web}}: CS1 maint: url-status (link)
  12. ^ Furigay, Charolette (June 20, 2017). “DOTr launches OFG for PUV Modernization”. Business Mirror. Retrieved October 16, 2017.
  13. ^ “‘Tanggal Bulok, Tanggal Usok’ ops sweep off dilapidated jeepneys”. January 23, 2018.
  14. ^ “Proposed designs of modernized jeepney models, unveiled to the public”. UNTV. October 12, 2017. Retrieved October 16, 2017.
  15. ^ “DBP to provide P1.5-B finance facility for DOTr’s PUV Modernization Program”. Interaksyon. September 10, 2017. Retrieved October 16, 2017.
  16. ^ “DBP TO PROVIDE PHP1.5-B FINANCE FACILITY FOR DOTR’S PUV MODERNIZATION PROGRAM”. Department of Transportation. Retrieved October 16, 2017.
  17. ^ Iglesias, Myla. “PUV modernization gains ground”. Malaya. Retrieved October 16, 2017.
  18. ^ Rey, Aika. “DOTr hits Piston ‘propaganda’ on modernization program”. Rappler.com.
  19. ^ “DOTR SECRETARY TUGADE SAYS PUV MODERNIZATION PROGRAM NOT ANTI-POOR”. Department of Transportation. Retrieved October 16, 2017.
  20. ^ “24 AGENCIES, 20 TRANSPORT GROUPS AND COOPERATIVES PUSH FOR PUV MODERNIZATION”. Department of Transportation. Retrieved April 14, 2018.
  21. ^ “Public and private sectors push for PUV modernization”. Manila Bulletin. Retrieved June 21, 2017.
  22. ^ “PUV modernization program gains support”. Journal Online. Retrieved June 21, 2017.
  23. ^ a b “Major transport groups to skip 2-day strike slated next week”. Philstar.com. Retrieved October 12, 2017.
  24. ^ “Despite strike, other transport groups OK with jeepney modernization”. GMA News Online. Retrieved October 17, 2017.
  25. ^ “Transport strike: Why pick on jeepneys to fix traffic problems?”.
  26. ^ a b “Transport groups to stage 2-day strike to protest vs jeepney ‘phase-out scheme’“. Inquirer.net.
  27. ^ Guno, Charmaine Samala; Collera, Angelie Azcuna; Agaton, Casper Boongaling (2021). “Barriers and Drivers of Transition to Sustainable Public Transport in the Philippines”. World Electric Vehicle Journal. 12 (1): 46. doi:10.3390/wevj12010046.
  28. ^ a b Cepeda, Mara (October 23, 2017). “Include jeepney drivers, passengers in PUV modernization talks – Robredo”. Rappler. Retrieved July 21, 2021.{{cite web}}: CS1 maint: url-status (link)
  29. ^ “Poe: Govt not ready for PUV modernization”.
  30. ^ “Poe, Sotto: Allow old but roadworthy jeepneys on the road | Inquirer News”.
  31. ^ Tuquero, Loreben (October 3, 2019). “‘Hodge-podge planning’: How DOTr mismanages PUV modernization program, according to senators”. Rappler. Retrieved July 21, 2021.{{cite web}}: CS1 maint: url-status (link)
  32. ^ Salamat, Marya (February 27, 2017). “Public feels impact of nationwide strike vs jeepney phaseout, corporatization”. Bulatlat. Retrieved July 21, 2021.
  33. ^ “IN PHOTOS: Independence Day 2021 protests around the Philippines”. RAPPLER. June 12, 2021. Retrieved December 2, 2021.
  34. ^ “Why some transport groups oppose PUV modernization”. Philstar.com. Retrieved September 26, 2017.
  35. ^ Roxas, Pathricia Ann. “No classes at all levels, no gov’t work on Monday – Malacañang”. Retrieved October 16, 2017.


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