The government's long-planned PUV modernization program has officially been
launched. The formalities took place during a briefing at Camp Aguinaldo. The program,
according to the official press release, is "designed to make public utility vehicles safer,
more convenient, more comfortable, and environment-friendly."
Chief among these changes is the issuance of the Omnibus Franchising
Guidelines (OFG), which are new rules for PUV franchises aimed at improving their
practices. Under these guidelines, local government units (LGU) are required to develop
a local transport plan (which includes traffic management measures), and a route plan
based on existing networks and passenger demand. Right now, PUV franchises work with
route proposals from operators.
To help you better understand this long-term program, we've summarized some FAQs on
the matter:
*What's covered under the PUV modernization program?
Buses, jeepneys, and public utility vans.
*What's the timeline of implementation?
As soon as the OFG is passed, which the Department of Transportation (DOTr)
estimates could happen as early as this year.
*What's the benefit for commuters?
For one, it'll make commuting safer. The new vehicles will be equipped with GPS and
CCTVs to monitor both drivers and passengers. They'll also have speed limiters, and
safety officers will be assigned. The entire public transport network promises to be
expanded and planned out better, plus the new vehicles will have easier access for PWDs
and those with limited mobility.
*What's the benefit for PUV drivers?
It's no secret that jeepney drivers have been against this program from the get-go. But,
they'll actually be getting monthly salaries and benefits. Yup, that's right. Hopefully, that
means they'll stop parking in the middle of the road trying to get as many passengers as
possible. They'll also have reduced working hours, and be given opportunities to take part
in government-sponsored driving training programs. The new PUVs are supposed to be
easier to operate, too.
*What's the benefit for local manufacturers?
As part of the program, the DOTr is working with the Department of Finance, the
Department of Trade and Industry, and other financial institutions to give manufacturers
and operators better access to credit. Small operators, meanwhile, can consolidate their
resources to share the costs of operations and maintenance. The loan program promises
low equity, low interest rates, and longer payment periods.
*Will the old jeepneys be scrapped?
No, according to the DOTr. Instead they'll be modernized to provide better service.
There'll be a three-year transition period to bring the old vehicles up to speed with the
government's assistance. Among the changes the modernization program will address is
to ensure that the vehicles comply with international and local emission
standards. They'll also be improving the driver's view of the road and will rid vehicles of
any unsafe protrusions.
*What's going to happen to existing franchises?
Upon issuance of the OFG, existing franchises will continue to operate for two to three
years. During and after the transition period, they can apply to operate in new or modified
routes as put together by the LGUs in their local route plans.
https://www.topgear.com.ph/news/motoring-news/puv-modernization-program-a00187-20170619
What is the jeepney modernization
program?
This is an initiative of the government which will put in new and safer jeepneys on the
street and phase out the old and poorly maintained ones. This was initially introduced
by the Land Transportation Franchising and Regulatory Board (LTFRB) in 2015. It
seeks to minimize outdated (and almost lethal) jeepneys in the streets, boost passenger
safety, and prevent pollution by imposing an age limit for transport vehicles that are
allowed to operate.
According to this resolution by the LTFRB, public vehicle operators will not be approved
for a franchise, extend their Certificate of Public Convenience (CPC), increase of
number of vehicles, or substitute their vehicles if their unit is more than the minimum
age requirement. The unit should not be more than fifteen (15) years old reckoned from
the date of manufacture of subject vehicle.
Basically, this program isn’t only going to regulate jeepneys that are older than 15
years, but also the buses and other public vehicles in the streets.
There are three areas where the program will address:
1. New franchising system
Compared to the current franchising system where jeepney operators propose the
routes of jeepneys, the new franchising system will be fully regulated by the
government.
The routes will be planned by the government.
Single unit operators will no longer be eligible for a franchise.
Initially, the minimum number of jeepneys for franchise is 20. By 2019, the minimum
number will be raised to 40.
Standardize income of jeepney driver, provide them with regular employment benefits,
and abolish boundary system.
2. Improving PUVs to international standards
The government has also imposed a set of guidelines for all vehicles to meet before
getting approved to operate. In order to uphold safety, comfort, and environmental
soundness, all vehicles and services will comply with the national standards and
international vehicle safety conventions. Depending on the type of PUV, there are
various specifications that they must meet as imposed by Department of
Transportation’s Omnibus Guidelines.
Here is a quick rundown of the most common and impacting upgrades imposed on the
future of PUVs in the Philippines:
1. Vehicles with combustion engines must have low emissions in compliance with the
EURO IV emission standards or better.
2. Speed limiters
3. Closed-circuit television (CCTV) camera for selected types of PUVs
4. Dashboard camera
5. GPS
6. Person with disability (PWD) friendly
7. Comfortable seats
8. Provision of Wi-Fi access
9. For buses, standing passengers must not exceed five persons
3. Training for drivers
The modernization of the public transport will not be successful without the cooperation
from the drivers manning the roads. This is why the modernization program will also
include training for these PUV drivers.
The training will serve as a refresher (and a crash course) on the technicalities of
driving, safe measures, and proper etiquette in dealing with passengers.
What are the economic implications?
The government has earmarked ₱2.2 billion for its transport modernization plan, which
will be used to provide subsidy to drivers and operators who will be buying electronic
jeepneys. What does this mean to the economy?
1. Provide new job opportunities
While it cannot be denied that the modernization of public transport will gravely affect
individual and small-time jeepney operators and owners, but on the other hand it will
pave the way to the car manufacturing industry in the Philippines that will create more
jobs.
One of the long-term goals of the jeepney modernization project is to bring the vehicle
manufacturing industry into the country. This is however not yet set in stone and might
not push through, as it’s still being negotiated by the government with vehicle
manufacturers.
2. Enhance tourism industry
According to Department of Tourism, tourism in the Philippines is thriving as it saw a
19.60% increase of visitor arrivals compared to last year and a 68% increase since
2013. With the jeepney being the primary mode of transportation all over the country, it
will make transportation more comfortable and easier not just for Filipinos but also for
tourists. It will enhance tourist experience in the Philippines.
Aside from that it will put a new and interesting twist to the jeepney icon, which has
been in the minds of the world inseparable to the Filipino psyche. This time, the
jeepneys (especially in Metro Manila) will not be viewed as a smog machine that spews
deadly fumes and poses as a safety hazard to people on the streets.
It will still be uniquely the Philippines’ jeepney, but with a respectable green sheen. If
the newly rolled out omnibus franchising guidelines are to be considered, new jeepneys
would have at least Euro 4-compliant engines but with a host of comfort and safety
features.
3. Streamline public transportation
Road safety and policies will be easier to roll out since the government can easily
regulate PUV operators.
4. Gradually solve traffic condition
According to the study conducted in 2016 by Japan International Cooperation Agency
(JICA), traffic in the Philippines cost ₱2.4 billion daily to the economy and by 2030 it will
peak at ₱6 billion daily if left unsolved.
With the government having full control of the PUV routes, it will be easier to decongest
roads and plan routes that will minimize traffic conditions in highly saturated areas.
5. Increase base fare
The modernization of public vehicles will lead to a higher base fare, from ₱8 to ₱12.
This can be an added burden to the day-to-day expenses of commuters, but could
result in higher income for drivers and operators. While the other transportation
options like buses and TNVS are still likely retain their current fare rates, jeepney on
the other hand is most likely to increase.
What’s in store for commuters?
It’s a promising initiative aimed at improving the mode of transportation for commuters.
Aside from the sleek new jeepneys that can take you from point A to B safely, there are
a handful of benefits that the riding public will enjoy when the Jeepney Modernization
Program hit the ground.
1. Safety and comfort
A safer and more comfortable transportation system is the highlight of this
modernization program. The new vehicles that are showcased by the government
promise to be more spacious and offer a bunch of features that uphold safety and
security. The doors of some of these new jeeps will be on the side of the vehicle instead
of the back, and they will have a longer frame. Some units are air-conditioned to provide
a more comfortable option and these modern jeepneys are also PWD friendly.
Aside from the essentials, these e-jeeps also come with GPS navigation system, a
CCTV camera, dashboard camera, and even a Wi-Fi connection. These may just be the
icing on the cake, but they can make a world of difference in improving the quality of
commuting for passengers.
2. Health and environment friendly
Everyone can agree that jeepneys in Metro Manila are the biggest contributors of
carbon dioxide emission. In fact, in 2013 according to Climate Change Commissioner
Heherson Alvarez, more than 500,000 diesel-fueled jeepneys, buses, trucks and other
vehicles in Metro Manila are responsible for about 70% of the total soot or black carbon
emissions in the Philippines.
This can be detrimental not just to the environment but also to the health of the public.
Under the program, the proposed vehicles are powered by either Euro 4 engine or
electric engine with solar panels on the roof.
3. Better payment system
Is it time to say goodbye to “paki abot po” payment system that we’ve all grown
accustomed to with jeepneys? Not necessarily, not yet. Though, e-jeepneys that will
soon be hitting the streets come equipped with a tap card-based fare collection system,
well-maintained regular jeepneys that are not older than 15 years old will still remain on
the streets. No more passing change from one passenger to the other, all you’ll need is
a loaded Beep card and you’re good to go.
Will jeepney operators and drivers lose?
The major reason why Pinagkaisang Samahan ng mga Tsuper at Operation
Nationwide (PISTON) and Stop and Go Coalition are against this modernization plan is
because they see this initiative as ‘anti-poor’ because it would lead to the loss of
livelihood program of small-time jeepney owners and operators.
Though, this is true to a certain extent, jeepney drivers will not necessarily feel the brunt
of this change. At least, not in a bad way. Why?
For jeepney drivers who are merely renting out their jeeps, they will be getting a
standard income preset by the government. They don’t have to worry about the monthly
amortization of the new jeepneys. At the end of the day, the jeepney operators are
mandated to provide them a regular income, not affected by how much the driver is
earning per day.
The burden on the other hand will be shouldered by the operator who runs a franchise
of PUV. The monthly amortization will be a huge financial challenge since each unit
despite having a low APR and flexible payment term carries a huge price tag. Almost all
the drivers and small business operators cannot afford to franchise the new vehicles.
The high cost of e-jeepney
This is the part that has caused the outrage in light with the modernization of public
transport. These modern jeepneys will cost about ₱1.2 million to ₱1.6 million, which are
payable for up to seven years.
The estimate for the subsidy of these vehicles is about ₱800 per day or ₱24,000 per
month. While this is basically the current boundary rates of jeepney drivers in Metro
Manila, operators on the other hand will not be able to profit for a long time if this gets
implemented.
Government subsidy
To help PUV operators upgrade to newer jeepneys, the Department of Transportation
(DOTr) in September signed a memorandum of understanding (MOU) with the
Development Bank of the Philippines (DBP) for a₱1.5-billion loan facility for PUV
cooperatives.
The DBP will provide loans to cooperatives to finance the acquisition of new jeepneys.
The DOTr also signed an MOU with the Land Bank of the Philippines last April for a ₱1-
billion financing scheme for individual jeepney operators.
The government will be subsidizing ₱80,000 per vehicle purchased by operators or
drivers. However, that amount is only about 5% of the total price of these new PUVs
and could hardly bring down the monthly repayment, which is the root cause of the
outrage from certain transport groups.
https://www.imoney.ph/articles/jeepney-puv-modernization-program/
