DTI needs budget support for PUV manufacturers

A new executive order (EO) is being prepared to boost local manufacturing for the public utility vehicles (PUV) modernization program, the Department of Trade and Industry said.

Trade Secretary Ramon Lopez said there is local production of the modern PUVs, but they are competing with cheaper imports.

“Now, we need a new EO so we can get the budget to support local manufacturers and assemblers to encourage them,” Lopez said.

“That EO should set up the PUV modernization for local manufacturing,” he said.

The government’s PUV modernization is a Department of Transportation-led program with partner agencies like the DTI in charge of the manufacturing of the PUVs.

The government initially seeks to modernize 220,000 public utility jeepneys across the country as part of efforts to provide a safer transport system for commuters, while mitigating the effects of climate change.

The program’s end goal is not only to decongest the roads, but also to provide a safer, cleaner, healthier, and fuel-efficient transport system for Filipino commuters.

“But again you have two separate components for this, the modernization can start anytime and it has started basically upon the mandate from the President. It will start, so we are prodding manufacturers to supply,” Lopez said.

“But we do not have the support program now. We were hoping that the support program would be approved so that everytime you produce, we can give you support. This is really for supporting local manufacturers,” he added.

The DTI earlier scrapped the search for a third participant in its Comprehensive Automotive Resurgence Strategy program and instead decided to utilize the P9-billion portion of the scheme’s budget for a new program that will support the assembly of ecofriendly PUV.

The agency will use a portion of a P9-billion budget to develop an electro-dip coating facility to support the assembly of eco-friendly PUVs under the government’s modernization program.

The facility may form part of the perks which participating companies may enjoy upon joining the agency’s new program that seeks to encourage the local assembly of eco-friendly PUVs.