BusinessMirror

PUVMP gains traction as 124,443 drivers, franchise owners join co-ops–dotr exec

- By Lorenz S. Marasigan @lorenzmara­sigan

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.

 ??  ??

Newspapers in English

Newspapers from Philippines