MANILA, Philippines — The consolidation program for public utility vehicles (PUVs), part of the jeepney modernization initiative, has been reopened, according to the Land Transportation Franchising and Regulatory Board (LTFRB).
LTFRB chairman Teofilo Guadiz III announced in an interview with DZBB that the agency has reopened the application for consolidation of unconsolidated jeepney drivers for 45 days, following a request from the Senate.
“I only gave them 45 days. This is also in response to the Senate’s request when they passed a resolution asking us to defer the deadline. The concession I’m giving is to reopen it, but only for 45 days,” Guadiz said in Filipino.
According to a separate report from GMA News, Guadiz said the reopening of the program began on October 15, meaning applications for consolidation will be accepted until November 29.
Guadiz also noted that newly-consolidated drivers and operators will automatically be eligible for a P10,000 fuel subsidy.
“The moment you apply, you are automatically qualified. We will enroll you in Landbank, and you can already withdraw your funds,” Guadiz explained in Filipino.
However, he emphasized that unconsolidated drivers and operators can only join existing cooperatives and cannot form new ones.
As part of the PUV modernization program, drivers and operators are required to consolidate into cooperatives or corporations. Failure to do so would result in their being considered “colorum,” or illegal operators.
Background
The final deadline for consolidation was initially set for April 30, 2024, after being extended several times from its original deadline of Dec. 31, 2023.
Transport groups such as Piston and Manibela have been challenging the LTFRB’s memorandum circulars on the consolidation and modernization program before the Supreme Court since December 2023. However, the high court has yet to issue a restraining order to halt its implementation.
In July, 22 out of 23 senators called on the government to temporarily halt the modernization program, arguing that it places a financial burden on jeepney drivers.
The cost of a modern jeepney, which exceeds P2 million, has been deemed too expensive for PUV drivers and operators, according to state-run banks LandBank and the Development Bank of the Philippines.
Despite the Senate's call for a halt, President Ferdinand Marcos Jr. disagreed with the resolution, stating that the program was long overdue.
The government’s PUV modernization program, which began in 2017, aims to replace traditional jeepneys with vehicles that have at least a Euro 4-compliant engine to reduce pollution.