The national government has already spent billions of pesos for the Public Utility Vehicle (PUV) Modernization Program since it was rolled out in 2018, the Department of Transportation said on Saturday, Aug. 3, as it expressed opposition to the suspension of its implementation.

The PUV Modernization Program is now currently focusing on the route rationalization phase after the deadline for consolidation of operators to either a cooperative or a corporation ended on April 30 this year.

Since 2018, DOTr Secretary Jaime J. Bautista explained that the government has already spent 53 percent of the total of P7.5 billion allocated for the implementation of the program, including the P1.6 billion that was set aside for the PUV Modernization for this year.

“Suspending the program now risks wasting these investments and incurring additional costs to reestablish similar initiatives in the future,” said Bautista in a letter sent to Senate President Francis Escudero.

Aside from the billions of funds spent for the program so far, Bautista said that the suspension of the program that is being pushed by senators would undermine and damage the relationship that the government already established with stakeholders that already invested into the program

“Suspending PTMP (Public Transportation Modernization Program) at this stage of its implementation could disrupt services for many who depend on its benefits. This could undermine progress and damage relationships with stakeholders, particularly given that a significant percentage have already consolidated,” said Bautista.

“Also, significant resources have already been invested in developing and implementing the PTMP,” he added.

In a statement released on Saturday, Aug. 3, the DOTr did not specify how the billions of government funds were spent but the expenses include various programs intended to the affected members of the transport sector, particularly jeepney drivers and operators.

The projects include a training program from the Technical Education And Skills Development Authority and livelihood package under EnTSUPERneur Program.

Based on the latest data, a total of 42,352 beneficiaries received social support from the TESDA-backed Program’s Tsuper Iskolar Program while 10,867 beneficiaries were included in the EnTSUPERneur Program.

Status update

With the focus now on route rationalization, the DOTr said a total of 6,090 routes were consolidated since April 30 while 71 percent of the total 1,574 local government units nationwide have already submitted Local Public Transport Route Plan (LPTRP).

The LPTRP is a plan detailing the route network, mode, and required number of units per mode for delivering public land transport— the PUV Modernization phase that requires coordination with the LGUs nationwide.

As of April 30, nationwide consolidation reached 83.38 percent with the DOTR’s Office of Transport Cooperatives accrediting 1,781 cooperatives with 262,870 members.

Also based on the DOTr data as of July 17, a total of 11,165 Philippine National Standards-compliant modern jeepneys/vehicles are operating nationwide.

A total of 80 modern PUV models are offered by 28 manufacturers/assemblers, of which 58 percent are locally assembled by 16 manufacturers.

Opposition

The PUV Modernization, which will eventually lead to traditional jeepney phaseout, is being opposed by at least two major transport groups for allegedly being anti-poor.

They said the modernization program would force jeepney operators to buy a modern jeepney which cost around P2 million each—which means that they have to set aside more than P35,000 a month for the amortization.

They added that the program would only benefit big transport companies and businessmen that have all the resources to buy modern units, citing an incident in Makati wherein the purchase of modern jeepney was allegedly financed by a rich foreign businessman.

But for Bautista, the program will eventually benefit the riding public.

“Continuing the Public Transport Modernization Program (PTMP) aligns with our common goal of benefiting the community and advancing public welfare,” said Bautista.

While there are some issues that need to be addressed, he said, “ We remain committed to refining the Program to better meet the needs of our stakeholders.”

This includes the PUV Modernization Program’s last component – Vehicle Useful Life – establishes a long-term vehicle scrappage process, wherein government will purchase the old jeepney units from operators for a fixed and attractive price to help them finance the acquisition of new units.