Is the Phl ready for new jeepneys?

The new public utility vehicles set to replace the iconic jeepneys – modeled after the American army Willys Jeeps of the 1940s that have become, over time, those colorful commuter rides that we now have – without doubt will become the new standard on our roads soon.

The big question is how much of its original intention will survive over the next few years.

Under the government’s Public Utility Vehicle Modernization Plan (PUVMP) that would replace jeepneys by 2020, the immediate difference would be the design of this Class 2 commuter: some may still have splashes of color, but the doors will always be to the right side of the driver; no more rear entrance.

For most Pinoys, there would be no need to stoop while finding a seat because the PUVMP calls for a raised roof with bars and handles that passengers may hold on to. The seats are still side facing, but will allow 22 seated passengers and a few more standing up. If you’ve ridden in the handful of replacement jeepneys now plying some routes, you’ll be impressed with the bells and whistles. They have dash cams, speed limiters, CCTV cameras, and an automatic fare collection system, the latter just how you see on American movies.

More importantly, those inefficient and smog-spewing second-hand engines are replaced with Euro-4 emissionscompliant engines (or electric battery-run) that are brand new and reportedly 43 percent more fuel-efficient, although still imported.

Truly, the PUVs that will replace existing jeepneys would make any Filipino riding commuter proud because, while they still cannot be regarded as world class, the departure from the old scraggly state is as radical a deviation as it can be.

High cost

Some details in the PUVMP, however, continue to nag. The biggest one is its cost. The most basic unit sells no lower than P1.1 million, and goes higher with upgrades like air-conditioning, LED televisions, and fire extinguishers. If one wanted to be truly eco-friendly using batterypowered engines, the price could go up to P1.6 million.

Knowing the daily struggles of our jeepney drivers, purchasing the barest replacement PUV model, even on installment basis, would likely be a burden and not financially sustainable, even if the amortization period would be extended to 10 years from the program’s seven years.

This is why the government wants a one route, one franchise policy. There is no room for individuals holding and operating a franchise, which has been the case with the current jeepney system. Jeepney drivers and operators are, thus, encouraged to form into cooperatives or a corporation.

Each member of a cooperative or corporation is eligible to a loan of as much as P80,000 from a special lending window opened at the Development Bank of the Philippines. The loan represents the five percent down payment that will be paid for as long as seven years. Interest is six percent per year.

The government hopes that the coop/corporation setup, coupled with the liberal financing terms – plus higher fare rates – will enable the replacement PUVs to survive.

The first few months of operation would give an inkling of its financial viability. Should the bottom line look precarious, the fallback would be additional fare hikes, if the government will want to shore up the success of the modernization program. And that’s bad news for commuters.

Banking on cooperatives

The sustainability of cooperatives, on the other hand, would also be a concern. It’s no secret how the cooperative system in the Philippines continues to flounder, bogged down by membership squabbles, fraud (usually, leaders absconding with the coop funds), and poor management.

One of the first cooperatives to receive program funding for 35 modernized jeepneys is run by Senate employees, and will run on a new route around the bay area. Previously, three coops from Tacloban, Leyte received 15 e-jeepneys each powered by solar batteries. A coop in Iloilo City also received 15 units that are diesel-powered.

The biggest batch to date went to two cooperatives in Taguig City – the first receiving 137 units, and the second, 279 units – accounting for 416 modernized jeepneys. This is thanks to the local leadership’s commitment to replace its old jeepneys with a more efficient mode of transportation for residents and transient workers of the bustling city.

Those with local government support will need to be vigilant in overseeing the management of the coops. The amount of money that will be channeled into the modernization program is no joke, and threshing out potential operational issues will be tricky during the first few months.

Residual resistance

So far, the newly-formed coops operating outside of Metro Manila are facing more opposition compared to Taguig’s, even if the seat of protest by jeepney drivers and operators is in the metro.

Jeepney drivers and operators in the provinces, it seems, are more sentimentally attached to their franchises, and less inclined to band together with others to form the required cooperatives or corporations that will operate under a one route, one franchise policy.

In Mindanao, where there is a strong protest movement among jeepney drivers and operators, the government is studying how the modernized jeepneys will be introduced without raising too much of a fuss. This residual resistance to change will need to be dealt with more resolutely.

So far, about 500 units of the modern jeepneys have been delivered to their recipient coops; this leaves 19,500 more deliveries to complete the 200,000 estimated units that will replace 250,000 or more old jeepneys. That’s still a long way to go.

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