The government would have to shell out P64.2 billion for the modernization of public utility jeepneys (PUJ) and UV Express (UVE) vans if the subsidy will be raised to P360,000 per unit.
This was learned by congressmen Thursday, March 9 during a public briefing of the House Committee on Transportation on the controversial PUJ modernization program.
Attending briefing was Land Transportation Franchising and Regulatory Board (LTFRB) Board Member Riza Marie Paches, who bared that the modernization program covers 178,213 PUJs and UVEs all over the country.
Paches said that, at the start of the program, the government’s subsidy for affected drivers and operators was just P80,000 per unit.
“But over time this was adjusted to conform to the pricing of the units, which was increased already to P160,000 per unit for PUJ and UV Express,” the official told the solons. The panel is chaired by Antipolo City 2nd district Rep. Romeo Acop.
Disgruntled public utility vehicle (PUV) drivers and operators launched a nationwide transport strike earlier this week to show their opposition to the terms of the modernization program.
The strike fizzled out but their message was clear: switching to the use of modern units is simply too much a financial burden.
“If we are to be asked how much would be needed to bankroll the entire modernization program covering 178,213 PUJs and UVE units to be modernized nationwide an initial calculation based on the assumption that the equity subsidy would be increased, as has been espoused during a lot of the hearings to aid in the transition, there is really a need to handhold the transitioning operators and drivers into the modernization, we are looking into a P64.2-billion fund requirement,” Paches said.
Under the 2022 General Appropriations Act (GAA) or national budget, some P1.05 billion was allocated for expanded equity subsidy for PUV modernization.
Out of this amount, only P39.240 million have been disbursed, while P95.5 are pending for release. Some P157.32 million remain in reserve for the pending applications.
A modern jeep--which resemble a mini-bus, as opposed to the iconic look of a traditional jeep--is worth P2.8 million.
Paches further said that a total of 106 models of modern PUVs have been given Certificates of Compliance (COC) by the Philippine National Standards.
Thirty-nine out of the 106 models are locally manufactured. There are 13 local manufacturers-slash-assemblers of modern PUVs.