DRIVERS need to earn at least P6,000 to as much as P7,000 daily to pay for the amortization of modernized jeepney units under the public utility vehicle (PUV) or jeepney modernization program, Rep. Bonifacio Bosita (PL, 1-Rider) said yesterday.
Bosita told the Land Transportation Franchising and Regulatory Board (LTFRB) during a hearing of the House Committee on Transportation that transport cooperatives would have to shell out a huge amount to pay their loans since each unit costs P1.6 million to P2.8 million.
He also expressed apprehension that base fares may rise from P30 to P40 even if the purchase of modernized jeepney units would be subsidized by the government.
Based on the computation of the Landbank of the Philippines, Bosita noted a loan for a P2.8 million unit with a six percent annual interest payable for seven years would cost cooperatives P40,000 monthly, excluding the cost of fuel, facilities, cooperative management, maintenance and other mandatory expenses.
He said drivers would need to earn P4,000 to P5,000 a day for such expenses and another P1,500 to P2,000 daily for their own income, for a total of P7,000 a day.
“Mr. Chair, we are so focused on this amount because, of course, the bigger the amount, the bigger the expenses that people would shoulder. Why the people? Because drivers would not have enough to pay the loans, where would they get the money? From commuters, so it’s the people who would shoulder this,” Bosita told the panel.
LTFRB Chairperson Teofilo Guadiz III said the computation is only accurate if the acquisition cost per jeepney is P2.8 million, stressing the cheaper option is locally manufactured units that cost P980,000 each.
“We respectfully differ with the computation of Honorable Bosita based on certain premises,” Guadiz said when asked by panel chair Antipolo Rep. Romeo Acop if the computation presented by Bosita was accurate.
When pressed, Guadiz said he would not say the computation is inaccurate if the cost of a vehicle is P2.8 million per unit, an answer which annoyed Acop, who scolded the LTFRB chairman.
“You are already on the defensive. Yes or no? Is that accurate?” Acop said, to which Guadiz replied: “We wish to qualify that to a certain degree, no (it is inaccurate], your honor.”
When the same question was asked by Rep. Rodante Marcoleta (PL, Sagip), Guadiz said: “Mr. Chair, the premise of the question is based on the acquisition cost of P1.8 million to P2.4 million; as of now, we have jeepneys that are running from the cost of P980,000.
“We respectfully differ with the computation of the Honorable Congressman Bosita based on certain premises. It is accurate on the premise that the cost of vehicles is at least P1.6 million,” Guadiz said.
Bosita said drivers would still have to cough up P25,000 monthly even if each unit costs P1.6 million.
Upon the instruction of Speaker Martin Romualdez, the House transportation panel held the motu proprio investigation to look into the alleged anomalies and corruption in the implementation of the (PUV) or jeepney modernization program which was initiated under the Duterte administration.
The Speaker last week said his office has received reports “that corrupt practices may have tainted the conceptualization and planned implementation” of the modernization program.
Romualdez earlier cited reports that transport officials are allegedly in cahoots with previous officials in the negotiations for the importation of modern jeepney units to replace old ones.
The House leader has been urging the Department of Transportation (DOTR) to undertake a “complete review” and extend the implementation of the program, which the Speaker supports while at the same time calling for measures that would protect jeepney drivers.
Laguna Rep. Dan Fernandez moved that the panel approve a resolution recommending to President Marcos Jr. to extend the January 31 deadline given to unconsolidated public utility vehicles.
The motion was duly seconded but was archived for discussion in the next hearing since the committee does not have the required numbers of members to approve it.
The required franchise consolidation, a component in the modernization program, lapsed last December 31, 2023 but unconsolidated commuter jeepneys are still allowed to operate on selected routes until January 31, 2024.
