Senate President Francis “Chiz” Escudero renewed his call for the government to first resolve the concerns of transport groups regarding on financing before pushing for the Public Transport Modernization Program (PTMP).
“My position has not changed. Until the government perfects the financing system related to PUJ, PUV modernization, it should not be required for everyone. Because they might not be able to handle the height and size of a modern jeep,” Escudero said in a press briefing at the Senate, Monday, March 24.
“At this time, addressing concerns on financing should be prioritized so that it can be handled efficiently, not only by the drivers, not only by the operators, but especially by the commuters,” he stressed.
On Monday, the Department of Transportation (DOTr) said it is open to some changes in the government’s Public Transport Modernization Program (PTMP) to address the concerns of transport groups.
“Absolutely, we're open to changes. This time it would be different. We would be open to changes because clearly there are some issues that need to be resolved,” DOTr Secretary Vince Dizon said in a press conference.
Dizon said about 86 percent of public utility vehicles (PUV) have applied for consolidation as the initial part of the modernization program, but so far, only around 40 percent have been approved.
To this, Escudero suggested that the government tap state financial institutions, particularly the Land Bank of the Philippines (LandBank) and the Development Bank of the Philippines (DBP) to ease the fears of ordinary jeepney drivers and operators.
“Just fix the financing side. There's the Landbank, there's the DBP; there's a lot of money, so why not use it to lend to them at concessional rates? Why not simplify the lending process? That way, it can continue and be done as soon as possible,” the Senate leader stressed.
“It's not possible especially if the cost of a modern jeepney is at P3-million and state subsidy would only be at P200,000 to P400,000. Where will the operator and driver get the money to pay for that, especially since the LTFRB (Land Transportation Franchising and Regulatory Board) would not permit them to increase fares, depending on the amount they will have to pay for a modern unit?” he pointed out.
“Even the transport routes have not yet been approved by the LTFRB throughout the Philippines, so how can we calculate the correct fare that should be charged to recover the costs they would have incurred in buying modern, clean but expensive jeepneys?” the Senate leader argued.