By Rjay Zuriaga Castor
Senator Francis Tolentino said a “bureaucratic crisis” is plaguing the controversial Public Utility Vehicle Modernization Program (PUVMP) as he joined other senators in calling for the program’s suspension.
“The problem that arose was because of a bureaucratic initiative that resulted in a bureaucratic crisis, necessitating a bureaucratic solution,” Tolentino told Daily Guardian on Friday, July 26.
“I joined the call of some of my colleagues to suspend and study for a while,” he added.
The senator blamed the Land Transportation Office and the Land Transportation Franchising and Regulatory Board, the attached agencies of the Department of Transportation (DOTr), for the issues surrounding the PUVMP.
Tolentino emphasized that the abrupt implementation of the program has created a series of issues in the transport sector, significantly affecting the commuting public.
Launched by the DOTr in 2017, the PUVMP seeks to comprehensively modernize road public vehicles in the country, including jeepneys and buses.
However, since its launch, transport and labor groups have strongly opposed the program due to the costly requirements and the potential loss of livelihoods for thousands of drivers and operators.
The opposition has been expressed through a series of nationwide transport strikes, which have paralyzed public transportation operations due to a shortage of vehicles serving passengers.
Tolentino also stressed that the loan subsidy for the purchase of modern public utility vehicle units for consolidated operators under the PUVMP is insufficient.
“The government’s subsidy for jeepney cooperatives is insufficient; it really can’t cover everything. Even if you spend 6.3 billion pesos, it’s still not enough,” he said.
The government is giving a subsidy of P280,000 per unit for PUV operators who purchase units under Class 2, 3, and 4 classifications, while those who purchase Class 1 PUV units will be given P210,000 per unit.
The loan subsidy is part of the “5-6-7-8” financing package for jeepney drivers and operators, which provides access to loan programs from government banks. The package requires a 5 percent down payment, an interest rate of 6 percent, and a seven-year repayment period.
A traditional jeepney costs around P150,000 to P250,000, while, according to state-run banks, a modern e-jeepney is priced between P2.3 million to P2.8 million.
Some lawmakers argue that transport cooperatives need up to P7,000 per day to repay their loans and for drivers to earn enough for their families.
Tolentino added that there still needs to be a “balance,” noting “the need to modernize and to have an efficient mode of transportation.”
“We will study it again. We won’t make it difficult for those who really cannot comply with it,” he added.
In a committee hearing on Tuesday, July 23, Senate President Francis “Chiz” Escudero and Sen. Raffy Tulfo sought the suspension of the PUVMP until all issues surrounding it are resolved.
Escudero urged Tulfo, chairperson of the Senate committee on public services, to file a resolution urging President Ferdinand Marcos Jr. to temporarily halt the program.
