Topic: Modernization of public utility vehicles by 2020

The Public Utility Vehicle Modernization Program (PUVMP) was launched by the
Department of Transportaion of the Philippines in 2017, with the goal of making the
country's public transportation system efficient and environmentally friendly by 2020. The
program calls for the phasing-out jeepneys, buses and other Public Utility Vehicles
(PUVs) that are at least 15 years old and replacing them with safer, more comfortable
and more environmentally-friendly alternatives over the next three years. Drivers will also
be given access to various trainings and social support programs which will be offered to
enable them to be competent, self-sufficient and well-equipped with the necessary
technical knowledge and skills. In addition to the phase-out of old jeepneys, the program
aims to change the current franchising system, revise and introduce new routes and
provide training to jeepney drivers.
Various disagreement arose among the nation specially for public drivers and operators.
The causes of outrage in light with the modernization of public transport. First, the PUV
modernization aims to phase-out old jeepneys included and if not, change most of its
parts in high calibrated state. These modern jeepneys will cost about ₱1.2 million to ₱1.6
million, which are payable for up to seven years. The estimate for the income of these
vehicles is about ₱800 per day or ₱24,000 per month. While this is basically the current
boundary rates of jeepney drivers in Metro Manila, operators, on the other hand, will not
be able to profit for a long time if this gets implemented. Second, those public drivers who
are incapable of keeping up with the changes will lose their jobs and will increase the
unemployment rate in the Philippines. Third, the 2-peso increase in base fare for all
commuters. However, to help PUV operators upgrade to newer jeepneys, the Department
of Transportation (DOTr) last September 2019 signed a memorandum of understanding
(MOU) with the Development Bank of the Philippines (DBP) for a ₱1.5-billion loan facility
for PUV cooperatives. They will provide loans to cooperatives to finance the need for new
jeepneys. The DOTr also signed an MOU with the Land Bank of the Philippines last April
2019 for a ₱1-billion financing scheme for individual jeepney operators. After the
modernization, the worry for income will be scrapped into a salary fixed system and will
be implemented to all operators. Like regular employees, they are also entitled to benefits
like SSS, Pag-IBIG, and PhilHealth. All drivers have to undergo training programs which
will orient them for safer and more efficient driving. This program will also increase the
employment in the Philippines as it will offer more job opportunities as car manufacturing
companies open up in the Philippines and all sorts of businesses that concerns vehicles.
It is just one example of its implications in the economy.
The PUV modernization was taken action due to its long term benefits and great changes.
Although it requires certain compromises, it’s also worth noting that the Philippines has
long been left out when it comes to modernization of mass transport, in comparison to its
neighboring countries. It promotes more job opportunities for the Filipinos. It will improve
the income of our drivers as fixed salary system for the drivers will be implemented. Safety
and comfort both for public commuters and the drivers as they learn and acquire more
knowledge in the process of trainings provided by the government and will also improve
traffic conditions which is definitely health and environmental friendly as it gradually
decrease emissions.