SENATE President Francis Escudero yesterday asked the Committee on Public Services to come up with a resolution urging President Marcos Jr. to temporarily suspend the Public Utility Vehicle Modernization Program (PUVMP) until the government has come up with solutions to all issues and concerns about the program.
Escudero, during the committee hearing on the PUVMP, said he has always been against the implementation of the program since it is apparent the concerns raised by various stakeholders have not been given the proper solutions before it was fully implemented last April.
“That’s why I am proposing, Mr. Chairman, and I believe that the majority of the senators will support the suspension of the modernization program, that instead of coming up with measures or proposing amendments to the program, we immediately pass a resolution expressing the sense of the Senate that we are urging, calling on the President to temporarily suspend the program until such time that all of the questions and problems have been properly addressed,” Escudero said.
Sen. Raffy Tulfo, the committee chairman, replied in the affirmative.
“Definitely, absolutely, I will file a resolution for the suspension of the PUVMP and with the support of the majority of the senators and the Senate president, then so be it,” Tulfo said.
Escudero said he is confident the President would heed the senators’ call, just like when he listened to the plea of the people to ban the operations of the Philippine Offshore Gaming Operators as announced during his third State of the Nation Address last Monday.
He said the resource persons present during the hearing need not debate that the PUVMP is a failure since it was not well thought out and the government is not prepared to implement it since its proponents did not consult the various stakeholders.
“The government did not even bother to ask or at least listen to the PUV sector before it was implemented by the past administration. In other words, they forced it,” he added.
Escudero recalled that from 2019 to 2022, when he served as governor of Sorsogon, he turned down the program due to its many flaws.
He said a representative of the Department of Transportation even tried to convince him to approve the PUVMP in their province but said they should first convince then Davao City Mayor Sara Duterte to approve the implementation in her city.
Escudero said among the problems he observed was that the modern jeepneys cost too much and that the P2.5 million price cannot be paid by the jeepney drivers even on a staggard basis.
He said the government should have instead asked Filipino manufacturers to design the modern jeepneys, retaining the iconic Philippine jeepney design while creating more jobs for Filipinos.
He said the modern jeepneys were of poor quality and that a jeepney cooperative in Sorsogon made a loan to purchase around 30 to 40 units worth some P300 million but only eight units are now left running.
“Not until the financing issues have been resolved, you cannot force cooperatives to purchase those modern jeepneys made in China and Russia. It really will not work. And one more thing, what happened to the traditional design, history, and cultural importance of the iconic Philippine jeepney? You did away with that in an instant. Who are you to do such things? And who gave you the authority to erase it just like that?” Escudero said.
Escudero said they want to see jeepneys in good running condition equipped with air-conditioning units plying the streets nationwide but the reality is that drivers and cooperatives cannot afford the P2.5 million to P3 million price per unit even if the government provides a subsidy of P280,000 per unit.
“We really like the program but the question is: Can they afford to pay for the pricey jeepneys that you want?” he added.
Ferdinand Ortega of the Land Transportation, Franchising, and Regulatory Board (LTFRB) said the agency will adhere to whatever decision the President will issue.
He said the lowest price for modern jeepneys made in China or Korea is around P2.2 million which the drivers or cooperatives can pay in full for six to seven years. He said the downpayment would be five percent of the actual price.
He said the LTFRB has P1.3 billion in funds for an equity subsidy of P280,000 per unit.
He said the modernization program will run until 2030, the reason why they are asking for higher budget allocations to fill the equity subsidy for some 150,000 jeepneys nationwide that will be phased out to give way to the PUVMP.
Escudero said the LTFRB would need around P42 billion for the equity subsidy of 150,000 jeepneys.
“If that’s the amount you need, sir, P40 billion, stagger it for six years as you said until 2030. So P40 billion divided by six [years] then times P280,000. Maybe that’s the only number of jeepneys we have to modernize per year and not impose a deadline and then declare that those who have not joined cooperatives are illegal. That is unfair,” Escudero said.
Ortega said the vehicle modernization would be implemented within this year up to 2026 when the Local Public Transport Route Plan (LPTRP) has been completely laid out.
“You are right, they are not yet obliged. But when the LPTRP comes, which would be at least in 2027, then that’s the time that they have to switch from the traditional to the modern ones,” he said.
