The Department of Transportation's proposed P1.8-billion budget for the Public Utility Vehicle Modernization Program, or PUVMP, for 2024 remained unfunded.
At the agency's budget hearing on Tuesday before the House Committee on Appropriations, Transportation Secretary Jaime Bautista disclosed that the PUVMP received zero funding under the National Expenditure Program approved by the Department of Budget and Management.
It was not the first time the DBM deprived the project of funding, as it also did that in 2020 and 2023.
For 2023, the DoTr sought P778 million for the PUVMP but got zero for the program to help rid the roads of dilapidated jeepneys.
Still, Bautista said the modernization program would continue despite the zero allocation for it under DoTr's proposed P214.296 billion budget for 2024.
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"There are many components of the modernization program. One is the industry consolidation, which we are now working on. We have given a deadline up to 31 December for the industry to consolidate," Bautista said.
The industry consolidation, according to Bautista, will facilitate the cooperation between operators and drivers to minimize competition among them.
Moreover, he added that the DoTr has initiatives in place to assist those affected by the implementation of the modernization program, such as the ongoing training for affected drivers.
Costly units
"This is the continuing training of our affected drivers. We will implement that using our existing funds that we will not use in 2023. With the equity subsidy, we still have a budget leftover, so we can use it for 2024."
The DoTr launched the PUVMP in 2017, aiming to replace traditional jeepneys with safer, more efficient, and eco-friendly electric-powered or Euro 4 compliant vehicles.
The move drew flak from drivers and operators due to the high cost of the modern jeepneys, ranging from P1.4 million to P3 million.
Land Transportation Franchising and Regulatory Board chairperson Teofilo Guadiz had told lawmakers that the pre-pandemic routes for buses and jeepneys had already been reopened back in January of this year as a fallback position for the PUVMP.
"We are continually opening routes right now that we call development routes or new routes in response to the needs of the economy," Guadiz said.
Back in March, several transport groups staged a week-long transport holiday to oppose the phaseout of traditional jeepneys and UV Express vehicles, pressing the LTFRB to defer its decision.
