Solon seeks P31.57-B PUV 'rehab fund' to subsidize modernization
MANILA, Philippines — A progressive lawmaker is currently proposing P31.57 billion for the "centralized procurement" of Euro-5 engines to upgrade thousands of traditional jeepneys and other public utility vehicles — a move supported by transport group PISTON.
The proposal for a new program under the 2024 budget was sent to House Speaker Ferdinand Martin Romualdez last Wednesday by Rep. Arlene Brosas (Gabriela Women's Party), as the December 31 deadline for PUV consolidation sparks fears of an impending jeepney phase out.
"The amount of [P31,570,000,000] appropriated herein shall be used for the centralized procurement of Euro-5 engines for the upgrading of 63,140 traditional public utility jeepneys (PUJ), multicabs, and UV Express units under the First PHase of the PUV Rehabilitation Program at a subsidy of P500,000 per unit," said Brosas.
"In no case shall franchise consolidation or consolidation into cooperatives of PUV owners be made a requisite for the availment of the subsidy."
@GabrielaWomenPL Rep. @ArleneBrosas proposes a P31.57-B PUV rehab subsidy in the 2024 nat'l budget for the "centralized procurement" of Euro-5 engines.
— James Relativo (@james_relativo) November 30, 2023
This will upgrade 63,140 traditional jeepneys, etc. to help operators avoid the higher costs of modernization. | @PhilstarNews pic.twitter.com/h5QpvI2oEd
Transport groups earlier lamented the high costs of transitioning their vehicles to more "enviromentally friendly" engines, with modern minibuses or e-jeeps said to be costing around P2.8 million each unit.
The Department of Transportation (DOTr) earlier clarified that financial assistance for transport cooperatives are available on top of a government subsidy to upgrade their PUV fleet with low-carbon emission units.
DOTr made the statement while attempting to dispell "misconceptions" of a jeepney phase out, this even after Land Transportation Franchising and Regulatory Board chairperson Teofilo Guadiz III's acknowledged that it would be the "last stage" of the PUV modernization program.
"I hope the bicameral conference committee will seriously consider this proposal to enable thousands of PUV drivers and operators top comply with safety and environmental sustainability standards without resorting to the more costly acquisition of 'modern jeepneys' or mini-buses," continued Brosas.
'No need for consolidation if passed'
PISTON in a statement this Thursday voiced their support for the proposal of Brosas, saying that it would be used to upgrade about "upgrade about 63,140 traditional PUVs each year for three years, covering all 189,420 traditional PUVs."
"Should this be passed, thhere will be no reason for the government to push for franchise consolidation because the budget will fund the direct rehabilitation of old PUVs," said PISTON national president Mody Floranda in Filipino.
"The Marcos Jr. government should prove that the PUV Modernization Program is being pushed to make PUVs 'cleaner.' So it's only fitting that this budget passes. The PUVMP will only expose itself if it doesn't pass: that it favors businesses over providing service."
The group also demanded that funds from the controversial National Task Force to End Local Communist Armed Conflict (NTF-ELCAC) and the Confidential and Intelligence Funds (CIF) from the Office of the President and other agencies be reallocated to the PUV rehabilitation subsidy.
PISTON and Manibela earlier this November staged separate three-day transport strikes, protesting the possible loss of livelihood of many drivers and operators before 2024.
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