The government's Public Utility Vehicle Modernization Program, or PUVMP, still has not fully taken off due to the strong resistance of both jeepney operators and drivers to consolidate into corporations — a non-negotiable step needed for the initiative to push through.
Four days after the consolidation year-end deadline, the Department of Transportation, or DoTr, said it has yet to finalize the number of consolidated operators and drivers even if a "significant number of applications was observed."
Last Monday, DoTr Office of Transportation Cooperatives Chairperson Jesus Ferdinand Ortega said initial data showed that only 40 percent, or less than half, of jeepneys in the National Capital Region or NCR had conformed to the rules.
Ortega, however, was quick to add that the estimates could likely change.
According to the Land Transportation Franchising and Regulatory Board, or LTFRB, the final number of consolidated jeepney drivers and operators remained unknown because those who signified their intent had yet to pay the required fees before they could be included in the final consolidation report.
"In the meantime that the figures are being finalized, all unconsolidated PUVs may continue operating until 31 January 2024. The LTFRB will issue an appropriate resolution to give effect to this instruction," the LTFRB said in a statement on Wednesday.
Despite the differences with some transport groups, the DoTr maintained that the PUVMP will stay.
Even after the transport strikes, the DoTr issued revised Omnibus Franchising Guidelines that included conditions for franchise consolidation, which the groups said were "unjust and onerous."
Job cuts, fare surge loom
The Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide, or PISTON, has warned that approximately 60,000 jeepney drivers and 25,000 jeepney operators nationwide face the loss of their livelihood if the PUVMP pushes through.
IBON Foundation, a progressive think tank, predicted that jeepney fares could surge fivefold due to only 57 percent of public utility jeepneys and 65 percent of utility van express vehicles nationwide being consolidated.
"The Marcos Jr. administration is indifferent to the plight of PUV drivers, operators, and commuters and instead is more concerned with private sector interests that will benefit the most from the forced consolidation. The worsening privatization and corporatization threaten to raise jeepney fares by 300-400 percent over the next few years," the IBON Foundation said.
Despite government claims of a high consolidation rate, the IBON Foundation countered that the consolidation rate in the NCR, which has the country's biggest and most concentrated population, is even lower than the national average at only 26 percent of jeepneys and 34 percent of UV Express consolidated.
"There are an estimated nine million jeepney passengers daily in Metro Manila alone, and the lack of consolidated PUJs will leave many of them stranded," the group added.
Higher subsidies
Responding to the transport workers' clamor, the DoTr, through Department Order No. 2023-018 on 31 August 2023, increased the equity subsidy to P280,000 from P160,000 for a new jeepney unit.
Operators who purchase Class 1 PUV units will receive P210,000 per unit, while those who acquire Class 2, 3, or 4 units will get P280,000 per unit.
The DoTr pointed out that the higher financial grant will guarantee additional income to PUV operators who have a valid Provisional Authority or Certificate of Public Convenience as they purchase their modern PUV units and cut the cost of their monthly amortization.
Additionally, the move will strongly convey the program's financial viability for drivers and operators who want to be part of the PUVMP.
As per the order, the subsidy will be under the Special Loan Facilities of the Program Assistance to Support Alternative Driving Approaches or PASADA of the Development Bank of the Philippines and the Special Package for Environment-Friendly and Efficiently-Driven Public Utility Vehicles or SPEED UV of the Land bank of the Philippines.
Due to the retroactive application of the department order, the beneficiaries of the increased subsidy include the first movers or existing borrowers under the PASADA and SPEED PUV starting 31 July 2018.
The DoTr launched the PUVMP in 2017 to develop a "restructured, modern, well-managed and environmentally sustainable transport sector where drivers and operators have stable, sufficient and dignified livelihoods while commuters can get to their destinations quickly, safely and comfortably."
The program was met with strong opposition from transport workers who dubbed the PUVMP a "phase-out."
Among other things, the program targets to deploy new jeepney units running with Euro 4-compliant engines or electrically-powered engines with solar panels for roofs.
The modern PUVs should also be equipped with closed-circuit television cameras, a GPS navigation system, an automatic fare collection system, speed limiters, dashboard cameras and WiFi.