PUVMP gains traction as 124,443 drivers, franchise owners join co-ops–dotr exec
THE Department of Transportation ( DOTR) reported on Monday that a total of 124,443 drivers and franchise owners and operators have joined accredited transportation cooperatives for the consolidation of franchises, which is part of the government’s Public Utility Vehicle Modernization Program (PUVMP).
Transportation Assistant Secretary for Road Transport and Infrastructure Steve Pastor said aforementioned figures show that stakeholders are heeding the call of the government for the modernization of public transportation in the country.
“The number of accredited transport cooperatives have also grown since our last report in July. We have accredited 84 more transport cooperatives in just over three months, making a total of 1,316 transport co- operatives nationwide,” explained Pastor.
Office of Transport Cooperatives (OTC) Chairman Medel Afalla encouraged other transport stakeholders to follow the example of their counterparts, noting that the deadline for application for franchise consolidation of transport cooperatives has been moved to December 2020.
“By forming a cooperative, the operators are strengthening their financial capacity in acquiring the Puvmp-compliant units with the requirements for roadworthiness such as new engines with lower emissions, an AFCS system, CCTVS and GPS, among others,” said Afalla.
The call for the consolidation of franchises started in 2017. To be accredited, a group must have at least 15 units for consolidation. Once approved by the OTC, they are required to be accredited by the Securities and Exchange Commission.
Once accredited, the newly formed entity can begin the application for consolidation, which includes submitting the necessary requirements and application forms available for download at the official Land Transportation Franchising and Regulatory Board (LTFRB) web site.
The transport cooperative or corporation can then proceed to the modernization of their units, where they can apply for financial assistance through government loan programs with Land Bank of the Philippines ( Landbank) and the Development Bank of the Philippines. The last step is to apply for route rationalization.
“Despite the challenges of the Covid-19 outbreak, we commend the members of our transport cooperatives, both old and new, who continue to ensure unimpeded service while safeguarding the health and welfare of commuters,” Afalla said.
Those who fail to have their units join an accredited consolidated franchise holder, the LTFRB may issue a probationary authority ( PA), which is renewable every year, so long as the units pass the computerized Motor Vehicle Inspection Station ( MVIS) test for roadworthiness.
Pastor said the intent of the PUVMP is to modernize the transport sector through a comprehensive system reform, including policies and regulations on roadworthiness.
“As seen by the pandemic, there is a need for a better transport system to assure safety and health of passengers in the long run. Thus, we are encouraging all franchise owners and transport groups to consolidate their units now. Along with our attached transport agencies, we are envisioning that even more transport co- ops will begin the modernization process in the following year,” he said.