PUVs modernized in 3 years, transport consolidation seen

THE GOVERNMENT plans to modernize all public utility vehicles (PUVs) in up to three years, an off icial of the Department of Transportation (DoTr) said.

“We’re looking at two to three years,” Assistant Secretary for Road Transport and Infrastructure Mark de Leon told reporters yesterday on the sidelines of the signing of the Memorandum of Understanding between the DoTr and the Development Bank of the Philippines (DBP). The DBP has agreed to provide P1.5 billion worth of financing for the PUV Modernization Program (PUVMP) and the launch of the Program Assistance to Support Alternative Driving Approaches (PASADA).

Mr. De Leon said that under the PUVMP, local government units will need to prepare local public transport route plans (LPTRPs) which will identify routes and appropriate PUVs. He added that the current fleet of 200,000 public utility jeepneys (PUJs), for example, could undergo adjustments based on the determination of the appropriate mode of transport based on demand.

“We’re going to LGUs ( local government units) to teach them, to capacitate them on local public transport route planning, which will be the basis for the issuance of franchises. The LPTRP will determine the routes of jeepneys, buses or UV express, and the number of units... Every LGU will do that.”

He added that the DoTr is looking for the completion of LPTRPs in one to two years, with the exception of those of Metro Manila, Cebu, and Davao.

“We’re looking at one to two years before LGUs can complete the LPTRP… For Metro Manila, DoTr is the one doing it, [also in] Cebu, Davao… These will be the basis for submission to the LTFRB (Land Transportation Franchising and Regulatory Board),” Mr. De Leon said.

DoTr officials also said that under the PUVMP, the Omnibus Franchising Guidelines ( OFG) state that PUV operators will have to be consolidated, forming a cooperative, consortium, or corporation, in order to be granted a PUV franchise.

“With the current guidelines under OFG, [operators must be part of ] a cooperative or corporation to be given franchise,” Mr. De Leon said.

Undersecretary for Road Transport and Infrastructure Thomas M. Orbos said in a news conference after the ceremonial signing that the formation of cooperatives, consortiums, or corporations will ensure financial capability, and that other countries also followed the same model.

“We want for all the operators to form themselves into a consortium, so [ they will have] stronger financial capability… In case of studies in foreign countries where their transport systems started with [a system of ] individual operators, let’s say Singapore, Hong Kong, Japan, they started with 100 operators, so they really need to form a consortium for the sake of everyone… The point is, we need to drive them to forming consortiums and cooperatives,” Mr. Orbos said.

Addressing a concern of an operator that individuals may not be able to finance acquiring modern PUVs, Mr. Orbos said that “it would be better” for operators to join cooperatives or corporations.

Under the financing of the DBP, cooperatives and corporations are eligible to borrow funds for the purchasing of new PUVs compliant with government-defined vehicle standards set in the PUVMP. DBP will also lend funds for the acquisition and/or construction of support facilities (such as off-street garages and terminals) and necessary equipment for the operations and maintenance of PUVs.

There will be a fixed interest rate of 6% for the entire term of the loan and repayment period is seven years.

DBP President and CEO Cecilia C. Borromeo said that the financing will cover 700-900 PUJs in the pilot phase.

Mr. Orbos said that an exhibit of modern PUJ prototypes is scheduled for Oct. 12-13, and that current PUJ models will not be phased out.

“It does not mean that the old ones will be phased out. It will be the decision of each one of you… The phase out won’t happen immediately. Market forces will ( govern the process). If the new ones are there, and the old ones are still there, I’m sure people will ride the ones which they find more convenient, more safe,” Mr. Orbos said in a mix of English and Filipino.

He added that fare increases are “not an immediate part of the equation” of modernizing PUVs: “It will increase, but it has to be regulated.”

Mr. de Leon also told reporters that the department will be looking at the development of other automated fare collection systems ( AFCS), aside from the Beep Card in use at the Light Rail Transit ( LRT)-1, LRT- 2, and Metro Rail Transit ( MRT)-7.

“We’re not limiting market forces to develop new AFCS facilities or systems which may be cheaper than Beep. We will come up with a standard… It should be compatible with the Beep or any other system. DBP is already talking with Beep… because it has the biggest base now. It has three million users now. If there will be a new one that can provide a better rate than Beep… [ it] must be acceptable for the operator,” Mr. De Leon said. —