The Department of Transportation (DOTr) has expressed optimism that the number of consolidated public utility vehicles (PUV) will increase by 85 percent with the three months extension approved by President Marcos.

Currently, the consolidated PUVs nationwide is at 76 percent and in Metro Manila, the consolidation rate is at 52 percent.

“Even before, we have been saying that 76 percent consolidation is enough to implement the program. It is already high. With this extension, we can increase it to 85 percent and with this rate, this will be a successful program,” said DOTr Secretary Jaime J. Bautista in a press briefing on Thursday, Jan. 25.

“We hope that those who failed to consolidate will be able to meet this requirement in three months’ time,” he added.

This is the eighth time that the deadline for consolidation was extended since the start of the implementation of the PUV Modernization Program in 2017.

But Bautista said that it was him who recommended the extension following the requests of a number of operators and drivers to join after failing to meet the Dec. 31 deadline to consolidate into either a corporation or a cooperative. 

The consolidation is important under the PUVMP since it will serve as the basis of the issuance of the franchise to operate. 

The franchise will be given to either the transportation cooperative or corporation as Bautista insisted that they will not allow individual issuance of a franchise since it will defeat the core concept of the modernization program. 

It was the transport groups, led by Piston and Manibela, which are reportedly pushing for individual issuance of franchises. 

Problematic NCR

Bautista said the consolidation rate in the provinces is already high and it is in Metro Manila where the number of consolidated PUVs is low. 

But he said the DOTr is optimistic that more PUV operators in the National Capital Region will take advantage of the extension.

Lawyer Zona Russel Tamayo, director of the Land Transportation Franchising and Regulatory Board (LTFRB) echoed the optimism of Bautista that the consolidation rate in Metro Manila will also increase from 52 percent to 85 percent after the April 30 deadline.

She based her optimism on the result of the consolidation before the Dec. 31, 2023 deadline wherein only 32 percent of PUV operators consolidated a month before the deadline.

“In three weeks’ time, the figure rose from 32 percent to 52 percent. So that's a 20 percent increase three weeks before the Dec. 31 deadline,” said Tamayo.

Privilege not a right 

In the press briefing, Bautista stressed that the franchise issuance for PUVs is not a right but a privilege. 

“Maybe in exchange for the privilege given to them, they should comply with the requirements of the government because this program is for tbhe benefit of the commuters, drivers and operators,” said Bautista.

Defiant transport groups have been questioning the implementation of the PUV Modernization over what they described as sloppy implementation and anti-poor policies.

For instance, they said the PUV Modernization would lead to the cancellation of the existing franchise in favor of the modern units which is around P1.9 million per unit. 

While the national government has provided almost P300,000 subsidy per unit, the cost is still high especially for individual jeepney operators.

Call to join

After the Dec. 31, 2023 deadline, DOTr officials have been very vocal in saying that they will no longer allow unconsolidated PUV operators either to form or join existing transport cooperatives or corporations.

But with the deadline, Bautista said they will allow more transport groups to either form or join the existing cooperative and corporation as he emphasized that it is the main basis of the President’s decision to extend the deadline.

“We will also act on the motion for reconsideration filed by a number of operators who failed to meet the Dec. 31 deadline. So with three months’ time, I believe that it is more than enough time for them to comply with the requirements for consolidation,’ said Bautista.

For his part, LTFRB chairman Teofilo Guadiz III said that they welcome the decision of the President and called on transport operators to take advantage of the deadline extension.

“This is a recognition of the fact that in the last few days, those who were misled by the groups in not joining and who fail to make it during the cut off time will be given a second chance to redeem themselves in joining the program,” said Guadiz.

“The President heeded that call, so we will give the transport  groups the chance to join the program. We will assure you that you will not regret it because this is a program. This is good not only for the transport but in the end the consumers as well as the passengers,” he added.