LTFRB considering granting five-year franchise to jeepney operators
MANILA, Philippines — Reinstated Land Transportation and Regulatory Board (LTFRB) chairman Teofilo Guadiz III said that public utility vehicles will be given enough time to consolidate into cooperatives or corporations.
This is a response to the demands of PISTON which is holding a three-day transport strike starting Monday as a protest to the consolidation deadline on December 31. The group fears that this move will end the livelihood of operators and PUV drivers.
“Ang konsepto kasi kapag ikaw ay magmo-modernize ay hindi pwedeng pa-isa-isa, pa-tingi-tingi. Hindi uusad ang pagmo-modernize ninyo 'pag paisa-isa lang po. Kaya lang, binibigyan namin sila ng napaka-habang panahon, at least mga three years,” Guadiz said in a press conference on Monday.
(The concept is that when you modernize, it can't be done individually, in bits and pieces. Your modernization won't progress if you do it one at a time. However, we are giving them a very long time, at least around three years.)
Guadiz further emphasized that immediate consolidation is not necessary to complete the process on the day of the deadline.
“...By the mere filing, puwede ka na ma-consider as consolidated,” the LTFRB chief said. (By the mere filing, you can be considered consolidated)
He also said that as part of their negotiation with transport groups, LTFRB may grant a five-year provisional authority to franchises as long as they join the modernization program.
“Sa ngayon po kasi binibigyan lang namin sila ng provisional authority na one year para i-timing po natin sa modernization program. But the moment na sumama sila sa modernization program, puwede naman naming ibigay yung five years,” he said.
(As of now, we're only giving them a one-year provisional authority to time it with the modernization program. But the moment that they join the modernization program, we can provide them with a five-year authority.)
The LTFRB chief also said that drivers and operators who will join the transport strike will not be penalized contrary to his pronouncement on November 16 when he said that joining the strike could lead to the suspension or revocation of their franchises.
In a press conference last week, Guadiz said that joining the strike is opposite to operators and drivers' agreement with the government that franchise is a privilege.
On Monday, he instead said that the government respects the transport group's decision to hold strike.
“Kinikilala namin ang karapatan ninyo na ilahad po ang inyong dinaramdam o ang inyong hinaing sa pamahalaan,” he said.
(We recognize your right to express your how you are feeling and your grievances to the government)
Before the December 31 deadline, traditional jeepneys and UV Express drivers and operators must merge into cooperatives or corporations. Those who don't comply will be instructed to cease operations as mandated by the PUV modernization program.
Call for streamlined process for loans
A lawmaker has proposed the simplification of the process of the disbursement of loans from state-run banks to ease the burden of the jeepney operators joining the PUV modernization program.
Rep. Wilbert T. Lee (AGRI Party-list) filed a house resolution on Monday urging the LTFRB, Landbank of the Philippines (Land Bank), and the Development Bank of the Philippines (DBP) to streamline requirements and simplify the process of the implementation of the modernization program.
“Sa pamamagitan ng panukala nating ito, gusto nating mapabilis ang proseso, bawasan o iklian ang mga requirements para lahat ay mahikayat at makasunod sa implementasyon ng PUV modernization," he said in a statement.
(Through this proposal, we aim to expedite the process, reduce or shorten the requirements so that everyone is encouraged and able to comply with the implementation of PUV modernization.)
PISTON claimed that the high cost of modern jeepneys could heavily burden operators with substantial debt, highlighting unit prices reaching as high as P2.8 million each.
In March, LandBank approved P6.9 billion worth of loans which could be lent to transport cooperatives and corporations for the purchase of modern jeepneys.
Aside from the said loan from LandBank, Guadiz said that the government will be providing P200,000 to 350,000 subsidy to operators who will join the modernization program.
“Hindi po yan pautang ng gobyerno, binibigay po yan sa lahat ng operator sa bawat sasakyan na i-modernize mo,” he said.
(That's not a government loan, it's provided to every operator for each vehicle they will modernize.)
Aside from PISTON, transport group MANIBELA also said that they will join the transport strike in protest of the same issues.
Several universities have either canceled in-person classes or switched to online modes of learning due to the transport strike. Local government units also provided “libreng sakay” for commuters.
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