Public Utility Vehicle Modernization Program

{{Short description|Modernization of public transportation in the Philippines}} {{Use Philippine English|date=December 2022}} {{Use mdy dates|date=June 2020}} {{Update|date=May 2024}} {{Infobox event | title = Public Utility Vehicle Modernization Program | image = Bacolod City PUV Modernization 2023-08-06.jpg | image_size = 250px | caption = A modern jeepney in Bacolod | type = Transportation program | cause = Safety and environmental concerns | target = Phase-out and replacement of all PUVs 15 years or older<br />Formation or Participation of Transport Cooperatives | budget = ₱2.2 billion<ref>{{Cite news |last=Cabuenas |first=Jon Viktor D. |date=July 2, 2017 |title=Gov't allots P2.2 billion to subsidize PUV modernization –LTFRB |url=http://www.gmanetwork.com/news/money/motoring/616634/gov-t-allots-p2-2-billion-to-subsidize-puv-modernization-ltfrb/story/ |access-date=February 22, 2018 |website=GMA News}}</ref> | organizers = * President Rodrigo Duterte * Transportation Secretary Arthur Tugade | date = 2017–present }}

The '''Public Transport Modernization Program''' ('''PTMP'''), formerly and still commonly referred to as the '''Public Utility Vehicle Modernization Program''' ('''PUVMP''') or simply the '''PUV modernization program''', is a program launched by the Department of Transportation (DOTr) in 2017 with the goal of making the Philippines' public transportation system more efficient and environmentally friendly by 2020. Although the program calls for the phaseout of jeepneys, buses, and other public utility vehicles (PUVs) that are at least 15 years old and their replacement with safer, more comfortable, and more environmentally friendly alternatives. At the time of the program's inception, around 220,000 jeepneys were operating throughout the country.<ref>{{Cite news |last1=Talabong |first1=Rambo |date=June 19, 2017 |title=DOTr launches modernization program for jeepneys, buses |url=https://www.rappler.com/philippines/173390-dotr-launches-public-utility-vehicle-modernization-program/ |access-date=October 16, 2017 |website=Rappler}}</ref> The program also requires PUV drivers and operators to join or form transport cooperatives.

Replacement vehicles are required to use at least a Euro 4–compliant engine or an electric motor to reduce pollution. Proposed features include CCTV cameras, an automated fare collection system, speed limiters, and GPS monitoring systems.<ref>{{Cite news |last1=Francisco |first1=Katerina |date=October 16, 2017 |title=EXPLAINER: What's the reason for the 2-day transport strike? |url=https://www.rappler.com/newsbreak/iq/185435-explainer-philippines-transport-strike-october-2017/ |work=Rappler}}</ref>

The Land Bank of the Philippines estimated that each jeepney replacement unit would cost around ₱2.4 million to ₱2.6 million.<ref>{{Cite news |title=Jeepney modernization program kicks off next month |url=http://cnnphilippines.com/transportation/2017/06/20/Jeepney-modernization-program-kicks-off-next-month.html |url-status=dead |archive-url=https://web.archive.org/web/20171022052016/http://cnnphilippines.com/transportation/2017/06/20/Jeepney-modernization-program-kicks-off-next-month.html |archive-date=October 22, 2017 |access-date=October 16, 2017 |website=CNN Philippines}}</ref> However, Senator Grace Poe stated that, based on a 6% annual interest rate and a seven-year payment period, the actual cost of a replacement jeepney could reach ₱2.1 million.<ref>{{Cite news |last=Fonbuena |first=Carmela |date=December 10, 2017 |title=Poe: Math shows operators lose in gov't bid to modernize jeepneys |url=https://www.rappler.com/philippines/190953-senate-poe-jeepney-modernization-cost-operators-drivers/ |work=Rappler}}</ref>

While the program has generally received positive reception from the public,<ref name=":1" /> some transport groups have criticized it, arguing that it could result in job and business losses.<ref>{{Cite news |date=September 26, 2017 |title=Why some transport groups oppose jeepney phaseout |url=http://www.philstar.com/headlines/2017/09/27/1742854/why-some-transport-groups-oppose-jeepney-phaseout |website=The Philippine Star}}</ref><ref>{{Cite news |date=September 25, 2017 |title=Transport group holds strike to oppose jeepney phaseout |url=http://www.gmanetwork.com/news/news/nation/627035/transport-group-holds-strike-to-oppose-jeepney-phaseout/story/ |access-date=October 17, 2017 |website=GMA News}}</ref>

== Goals ==

The program aims to change the current franchising system, revise and introduce new routes and provide education to jeepney drivers.

The program, according to the DOTr, has the following goals: *Safe and comfortable transport, *Reliable travel time, *Disciplined and competent drivers, *Fair regulations, *Spacious jeepneys. Moreover, the government believes that the program's environmental and economic benefits would be felt by commuters, operators, and drivers alike: commuters will profit from the changes in routes and optimized networks. Because of the reduced traffic congestion and pollution, drivers will have higher monthly pay and benefits, as well as better health. Finally, with less traffic, operators will be able to take more passengers and save money under the franchising plan by pooling services.<ref name="facebook.com">{{cite web|title=14 THINGS YOU NEED TO KNOW ABOUT PUBLIC UTILITY VEHICLES (PUV) MODERNIZATION PROGRAM|url=https://www.facebook.com/notes/department-of-transportation-philippines/14-things-you-need-to-know-about-public-utility-vehicles-puv-modernization-progr/982723368533466/|website=DEPARTMENT OF TRANSPORTATION – PHILIPPINES FACEBOOK PAGE|access-date=October 16, 2017}}</ref>

The Omnibus Franchising Guidelines (OFG) were signed by Transportation Secretary Arthur Tugade in June 2017, and they altered the process of issuing jeepney franchises by implementing new route planning criteria and establishing new vehicle and driver standards.<ref>{{cite web|last1=Patena|first1=Aerol|title=DOTr launches PUV Modernization Program|url=http://www.interaksyon.com/dotr-launches-puv-modernization-program/|website=Interaksyon|access-date=October 16, 2017|date=June 20, 2017}}</ref>

Under the OFG, Local Government Units are required to come up with their own Local Public Transport Route Plans.<ref>{{Cite web|last=Kasilag|first=Jacob|date=June 30, 2021|title=Public Utility Vehicle Modernization Program In The Philippines: Definition, Purpose and Operation|url=https://philmotorlaw.com/feature/public-utility-vehicle-modernization-program/|website=philmotorlaw}}</ref>

These plans will be based on existing and projected travel patterns and will be considered by the Land Transportation Franchising and Regulatory Board in issuing new franchises. Single-unit operators will no longer be granted franchises.<ref>{{cite web|last1=Furigay|first1=Charolette|title=DOTr launches OFG for PUV Modernization|url=https://businessmirror.com.ph/dotr-launches-ofg-for-puv-modernization/|website=Business Mirror|access-date=October 16, 2017|date=June 20, 2017}}</ref>

=== Crackdown on dilapidated vehicles === In January 2018, Metro Manila's Inter-Agency Council on Traffic (i-ACT) launched operation 'Tanggal Bulok, Tanggal Usok', targeting vehicles for environmental and safety violations such as smoke belching, worn out tires and lack of seat belts. As of January 23, a total of 1087 vehicles, mostly Public Utility Jeepneys (PUJs), were flagged down, apprehended and issued summons. To accommodate affected passengers, the Armed Forces of the Philippines offered free rides.<ref>{{Cite web | url=https://www.rappler.com/moveph/194346-oplan-tanggal-bulok-tanggal-usok-jeepneys-dilapidated/ |title = 'Tanggal Bulok, Tanggal Usok' ops sweep off dilapidated jeepneys| date=January 23, 2018 }}</ref>

=== Prototypes === In October 2017, the Land Transportation Franchising and Regulatory Board (LTFRB) and the Department of Trade and Industry (DTI) presented sixteen prototype jeepneys. These models were all locally manufactured and based on guidelines set by the DOTr. Features include: *Euro 4 engines *CCTV Cameras *GPS *Automated fare collection systems *Front-facing seats *New exits on the right-hand side<ref>{{cite web|title=Proposed designs of modernized jeepney models, unveiled to the public|url=https://www.untvweb.com/news/proposed-designs-modernized-jeepney-models-unveiled-public/|website=UNTV|access-date=October 16, 2017|date=October 12, 2017}}</ref> 250px|thumbnail|right|Interior of a new modern jeepney === Financing === An estimated ₱1.5 billion will be given to transport corporations and cooperatives to purchase new PUVs through the Development Bank of the Philippines' Program assistance to Support Alternative Driving Approaches (PASADA). The program will feature a 5-percent equity for vehicle purchase, 6-percent interest rate and seven-year repayment period.<ref>{{cite web|title=DBP to provide P1.5-B finance facility for DOTr's PUV Modernization Program|url=http://www.interaksyon.com/dbp-to-provide-p1-5-b-finance-facility-for-dotrs-puv-modernization-program/|website=Interaksyon|access-date=October 16, 2017|date=September 10, 2017}}</ref><ref>{{cite web|title=DBP TO PROVIDE PHP1.5-B FINANCE FACILITY FOR DOTR'S PUV MODERNIZATION PROGRAM|url=http://dotr.gov.ph/2014-09-02-05-01-41/latest-news/297-dbp-to-provide-php1-5-b-finance-facility-for-dotr-s-puv-modernization-program.html|website=Department of Transportation|access-date=October 16, 2017}}</ref>

Under PASADA, a maximum of 95 percent of the cost of the vehicle, and a maximum of 75 percent of the cost of the support facilities comprise the total loan per borrower. The government will also offer a maximum subsidy of ₱80,000 to cover the equity payment.<ref>{{cite web|last1=Iglesias|first1=Myla|title=PUV modernization gains ground|website=Malaya |url=http://www.malaya.com.ph/business-news/business/puv-modernization-gains-ground|access-date=October 16, 2017}}</ref><ref>{{cite web|last1=Rey|first1=Aika|title=DOTr hits Piston 'propaganda' on modernization program|url=https://www.rappler.com/philippines/185406-dotr-piston-propaganda-puv-modernization-program-transport-strike/|website=Rappler.com|date=October 15, 2017 }}</ref> The subsidy was raised to ₱160,000 in 2020.<ref>{{Cite news |date=2023-02-27 |title=As the Philippines scraps iconic jeepneys, drivers and operators struggle with costs |url=https://www.straitstimes.com/asia/se-asia/as-the-philippines-scraps-iconic-jeepneys-drivers-and-operators-struggle-with-costs |access-date=2024-02-21 |work=The Straits Times |language=en |issn=0585-3923}}</ref>

A memorandum of understanding with the Land Bank of the Philippines was also signed by the DOTr to set up a ₱1 billion financing for PUJs via the Special Environment-Friendly and Efficiently Driven (SPEED) Jeepney Program.<ref>{{cite web|title=DOTR SECRETARY TUGADE SAYS PUV MODERNIZATION PROGRAM NOT ANTI-POOR|url=http://dotr.gov.ph/2014-09-02-05-01-41/latest-news/298-dotr-secretary-tugade-says-puv-modernization-program-not-anti-poor.html|website=Department of Transportation|access-date=October 16, 2017}}</ref>

According to a Development Bank of the Philippines representative, loans for modern jeepneys may only be considered upon the creation and approval of local public transport route plans by local government units.<ref>{{Cite web |last=Yu |first=Lance Spencer |date=2023-03-14 |title=Explainer: Why some transport groups support jeepney modernization |url=https://www.rappler.com/business/explainer-why-some-transport-groups-support-jeepney-modernization/ |archive-url=https://web.archive.org/web/20240808170357/https://www.rappler.com/business/explainer-why-some-transport-groups-support-jeepney-modernization/ |archive-date=August 8, 2024 |access-date=2024-09-25 |website=Rappler |language=en-US}}</ref>

==== Debt repayment ==== Compared to traditional jeepneys, modern jeepneys are 1,766.7 percent more expensive at ₱2.8 million per unit. A subsidy of ₱160,000 will cover no more than 5.7% of the total cost of one modern jeepney. According to one computation, jeepney drivers will need to earn ₱3,500 per day to repay their debt (compared to drivers' current estimated income of ₱2,000 per day).<ref>{{Cite web |last=Rivas |first=Ralf |date=2023-03-06 |title=In numbers: Why jeepney phaseout is anti-poor, will do little for environment |url=https://www.rappler.com/business/numbers-why-government-phaseout-jeepneys-anti-poor-do-little-environment/ |access-date=2024-02-16 |website=Rappler |language=en-US}}</ref>

==== Others expenses ==== A study published in the ''Philippine Transportation Journal'' stated that a number of expenses were overlooked—such as the setting up of charging stations, maintenance, and vehicle insurance—when the jeepney modernization was piloted in General Santos City.<ref>{{Cite web |last=Punongbayan |first=JC |date=2023-03-10 |title=[Analysis] The economics of jeepney modernization |url=https://www.rappler.com/voices/thought-leaders/analysis-economics-jeepney-modernization-program/ |access-date=2024-01-13 |website=Rappler |language=en-US}}</ref>

=== Phases === According to the DOTr, the proposed implementation time frame is as follows:<ref name="facebook.com"/> * Q4 2017 Pilot program in Metro Manila * 2018–2019 Metro Manila, Metro Cebu, Metro Davao * 2019–2020 Highly Urbanized Cities, Rest of the Country

=== Complementary programs === * Cebu Bus Rapid Transit System * Davao Public Transport Modernization Project

=== Franchise consolidation ===

The December 31, 2023, deadline for the consolidation of PUV drivers and operators was not extended by President Bongbong Marcos, which led to another transport strike by transport group Pinagkaisang Samahan ng Tsuper and Opereytor Nationwide (PISTON) on December 14-15, with their continued call to scrap the December 31 deadline and the complete removal of the mandatory franchise consolidation and the PUV Modernization Program.<ref>{{cite web |last1=Gita-Carlos |first1=Ruth Abbey |title=PBBM: No extension of PUV consolidation deadline |url=https://www.pna.gov.ph/articles/1215255 |work=Philippine News Agency |access-date=January 1, 2023}}</ref> However, upon the recommendation of Transport Secretary Jamie Bautista, President Marcos extended the deadline up to April 30, 2024, since a large number of franchise holders hasn't consolidated yet.<ref>{{cite web |last1=Bajo |first1=Anna Felicia |title=Marcos extends jeepney consolidation to April 30, 2024 |date=January 24, 2024 |url=https://www.gmanetwork.com/news/topstories/nation/895251/marcos-oks-extension-of-consolidation-of-puvs/story/ |publisher=GMA News Online |access-date=January 25, 2024 }}</ref>

Gabriela Women's Party-list Rep. Arlene Brosas and fellow members of the Makabayan bloc in the House of Representatives filed a resolution asking the Land Transportation Franchising Regulatory Board (LTFRB) to scrap the December 31, 2023, deadline for franchise consolidation.<ref>{{Cite news |last=Cruz |first=RG |date=December 7, 2023 |title=Transport group, Makabayan want jeepney franchise consolidation scrapped |url=https://www.abs-cbn.com/news/12/07/23/piston-makabayan-want-jeepney-franchise-consolidation-junked |access-date=January 12, 2024 |work=ABS-CBN News}}</ref>

A 2023 Senate resolution stated that "the LTFRB should not coerce PUV operators into complying with their guidelines without addressing the sector’s concerns."<ref>{{Cite news |last=Peña |first=Kurt Dela |date=2024-01-04 |title=PUV modernization: Understanding defiance of operators, drivers |url=https://newsinfo.inquirer.net/1883938/puv-modernization-understanding-defiance-of-operators-drivers |access-date=2024-01-13 |newspaper=Philippine Daily Inquirer |language=en}}</ref>

==== Financial losses ==== Some jeepney drivers have reported financial losses caused by franchise consolidation. Citing data from the Development Bank of the Philippines and Land Bank of the Philippines, Manibela said that more than a thousand jeepney drivers and operators were burdened by large debts after joining cooperatives.<ref>{{Cite web |last=Velasco |first=Raheema |date=2024-01-25 |title=A thousand consolidated jeepneys suffered financial loss - Manibela |url=https://www.cnnphilippines.com/transportation/2024/1/25/a-thousand-of-consolidated-jeepneys-in-debt.html |url-status=dead |archive-url=https://web.archive.org/web/20240127134446/https://www.cnnphilippines.com/transportation/2024/1/25/a-thousand-of-consolidated-jeepneys-in-debt.html |archive-date=2024-01-27 |access-date=2024-02-21 |website=CNN}}</ref>

Other jeepney groups and cooperatives reported that franchise consolidation resulted in financial losses, large debts, and having their livelihoods taken. One modern jeepney driver said that his income was significantly reduced due to a quota system that replaced the boundary system.<ref>{{Cite news |last=Sarao |first=Zacarian |date=2023-11-22 |title=Jeepney drivers, operators say consolidation caused financial losses |url=https://newsinfo.inquirer.net/1864049/jeepney-drivers-operators-say-consolidating-caused-financial-losses |access-date=2024-02-21 |newspaper=Philippine Daily Inquirer |language=en}}</ref>

==== Risk of corporate takeover ==== The franchise consolidation guidelines prohibit individual jeepney owners from applying for their own franchise.<ref>{{Cite news |last=Bueno |first=Anna |date=December 18, 2020 |title=The modernization plan is changing jeepney drivers' lives forever |url=https://www.cnnphilippines.com/life/culture/transportation/2020/12/11/jeepney-modernization-deadline.html |archive-url=https://web.archive.org/web/20231004235201/https://www.cnnphilippines.com/life/culture/transportation/2020/12/11/jeepney-modernization-deadline.html |archive-date=October 4, 2023 |work=CNN}}</ref> According to a study by the University of the Philippines Center for Integrative and Development Studies, this presents a risk of corporate takeover of the transport sector, which would further marginalize jeepney drivers. The policy brief contends that public transport is a public good "that should not be handed over to huge corporations and their profit interests". The policy brief recommends alternatives proposed by transport groups that would create employment in the transport industry, including in the repair and manufacture of parts for rehabilitated jeepneys, as well as provide safe, reliable, and affordable transport to commuters.<ref name=":3" />

== Reception ==

=== Support === At least twenty government agencies and twenty-four transport groups from across the country supported the launch of the program.<ref>{{cite web|title=24 AGENCIES, 20 TRANSPORT GROUPS AND COOPERATIVES PUSH FOR PUV MODERNIZATION|url=http://dotr.gov.ph/latest-news/255-24-agencies-20-transport-groups-and-cooperatives-push-for-puv-modernization.html|website=Department of Transportation|access-date=April 14, 2018}}</ref> Among transport groups that supported the initiative are the Federation of Jeepney Operators and Drivers Association (FEJODAP), 1-United Transport Koalisyon (1-UTAK), Alliance of Transport Operators and Drivers Association of the Philippines (ALTODAP), and Coalition of Operators, Drivers, Employees, Atbp. (CODE-X), and the Philippine Confederation of Drivers and Operators – Alliance of Concerned Transport Organizations (PCDO-ACTO).<ref>{{cite web|title=Public and private sectors push for PUV modernization|url=https://business.mb.com.ph/2017/06/21/public-and-private-sectors-push-for-puv-modernization/|website=Manila Bulletin|access-date=June 21, 2017}}</ref><ref>{{cite web|title=PUV modernization program gains support|url=http://www.journal.com.ph/news/nation/puv-modernization-program-gains-support|website=Journal Online|access-date=June 21, 2017}}</ref><ref name="philstar.com">{{cite web|title=Major transport groups to skip 2-day strike slated next week|url=https://www.philstar.com/headlines/2017/10/12/1748099/major-transport-groups-skip-2-day-strike-slated-next-week|website=Philstar.com|access-date=October 12, 2017 }}</ref> Pangkalahatang Sanggunian Manila & Suburbs Drivers Association (PASANG-MASDA) also expressed support. Their president Obet Martin stated, "it was high time for the country to replace the current jeepneys to more modern and more efficient units".<ref>{{cite web|title=Despite strike, other transport groups OK with jeepney modernization|url=http://www.gmanetwork.com/news/news/nation/629816/despite-strike-other-transport-groups-ok-with-jeepney-modernization/story/|website=GMA News Online|date=October 17, 2017 |access-date=October 17, 2017}}</ref>

A 2019 study also showed that majority of commuters prefer to ride an e-jeepney than a conventional jeepney in areas where it is available, as it provides a safer, environment-friendly, and more comfortable ride.<ref name=":1">{{Cite journal|last1=Agaton|first1=Casper Boongaling|last2=Collera|first2=Angelie Azcuna|last3=Guno|first3=Charmaine Samala|date=2020|title=Socio-Economic and Environmental Analyses of Sustainable Public Transport in the Philippines|journal=Sustainability|language=en|volume=12|issue=11|pages=4720|doi=10.3390/su12114720|doi-access=free}}</ref>

=== Criticism === Even before its launch, the program was received negatively by various transport groups. While Senate Bill 1284 and House Bill 4334, the program's enabling legislation, were still pending in February 2017, some jeepney drivers launched numerous strikes and demonstrations in Metro Manila and in key cities throughout the country.<ref>{{Cite web | url=https://www.rappler.com/philippines/162758-jeepney-strike-protesters-urge-against-disposing-of-outmoded-pujs/ |title = Transport strike: Why pick on jeepneys to fix traffic problems?| date=February 27, 2017 }}</ref>

Cooperative Development Authority noted that jeepney driver-operator groups were not included in technical working groups for the jeepney modernization program.<ref name=":2">{{Cite web|last=Cepeda|first=Mara|date=2017-10-23|title=Include jeepney drivers, passengers in PUV modernization talks – Robredo|url=https://www.rappler.com/philippines/186165-include-jeepney-drivers-passengers-puv-modernization-talks-robredo/|access-date=2021-07-21|website=Rappler|language=en}}</ref> Vice President Leni Robredo said jeepney drivers and operators, as well as the riding public, should be allowed to take part in public consultations regarding the program.<ref name=":2" />

Senator Grace Poe, chair of the Senate public services committee, expressed doubt over the governments readiness to implement the program nationwide. According to Poe, the government will have to shell out ₱415 billion for full implementation of the scheme, far more than the ₱2.26 billion it approved. She suggested that the PUV Modernization Program be implemented in select cities instead.<ref>{{Cite web | url=https://www.abs-cbn.com/news/12/05/17/poe-govt-not-ready-for-puv-modernization | title=Poe: Govt not ready for PUV modernization}}</ref>

Senator Poe and Senate Majority Leader Vicente "Tito" Sotto III called for a "middle ground" solution, saying that old but road worthy PUVs should be allowed to operate. However, the DOTr has given no clear commitment to their suggestion.<ref>{{Cite web | url=http://newsinfo.inquirer.net/951425/philippine-news-updates-jeepney-modernization-old-jeepneys-arthur-tugade-senate-grace-poe-road-worthiness | title=Poe, Sotto: Allow old but roadworthy jeepneys on the road | Inquirer News| date=December 11, 2017}}</ref> Senator Franklin Drilon criticized the program's mismanagement and "hodge-podge planning".<ref>{{Cite web|last=Tuquero|first=Loreben|date=2019-10-03|title='Hodge-podge planning': How DOTr mismanages PUV modernization program, according to senators|url=https://www.rappler.com/philippines/241682-senators-slam-dotr-poor-planning-puv-modernization/|access-date=2021-07-21|website=Rappler|language=en}}</ref>

Senate Minority Leader Koko Pimentel in January 2024 said the high cost of modernization would place drivers in debt and lead to a crisis in transportation. He said the government should suspend the program indefinitely.<ref>{{Cite web |last1=Santos |first1=Eimor |last2=Mantaring |first2=Jelo Ritzhie |date=January 3, 2024 |title=Pimentel wants indefinite suspension of PUV modernization |url=https://www.cnnphilippines.com/news/2024/1/3/pimentel-indefinite-suspension-puv-modernization.html |access-date=2024-01-10 |website=CNN |language=en |archive-date=January 10, 2024 |archive-url=https://web.archive.org/web/20240110135605/https://www.cnnphilippines.com/news/2024/1/3/pimentel-indefinite-suspension-puv-modernization.html |url-status=dead }}</ref>

In July 2024, Senate President Chiz Escudero said the jeepney modernization program should be suspended because operators could not afford the expensive modern jeepneys.<ref name=":5">{{Cite web |last=Ordoñez |first=John Victor D. |date=2024-07-31 |title=Senate seeks halt to state’s jeepney modernization plan |url=https://www.bworldonline.com/the-nation/2024/07/31/611534/senate-seeks-halt-to-states-jeepney-modernization-plan/ |access-date=2024-08-01 |website=Business World |language=en-US}}</ref> In the same month 22 Philippine Senators signed Senate Resolution No. 1096 calling for the suspension of the program. The resolution sought to prevent the loss of livelihood among jeepney drivers and operators.<ref name=":5" /> [[File:Youth_and_Transport_groups_vs_Oil_Price_Hike_and_Jeepney_Phaseout,_calling_for_economic_aid_amidst_COVID-19.jpg|thumb|Transport and youth groups, together with SCMP, calling for economic aid and calling out against oil price hike and jeepney phaseout amidst COVID-19 pandemic.]] In the House of Representatives, Representative Sarah Elago noted how the program displaces single franchise owners, owing to provisions in the law requiring franchises to own a minimum of 20 units, amounting to ₱7 million of capital.<ref>{{Cite web|last=Salamat|first=Marya|date=2017-02-27|title=Public feels impact of nationwide strike vs jeepney phaseout, corporatization|url=https://www.bulatlat.com/2017/02/27/public-feels-impact-nationwide-strike-vs-jeepney-phaseout-corporatization/|access-date=2021-07-21|website=Bulatlat|language=en-US}}</ref> Youth group Student Christian Movement of the Philippines (SCMP) slammed President Duterte on Independence Day 2021 as a "puppet" enforcing neoliberal policies such as jeepney phaseout.<ref>{{Cite web|date=2021-06-12|title=IN PHOTOS: Independence Day 2021 protests around the Philippines|url=https://www.rappler.com/moveph/photos-independence-day-2021-protests-philippines/|access-date=2021-12-02|website=RAPPLER|language=en-US}}</ref>

Kabataan party-list Rep. Raoul Manuel in December 2023 said he hoped that the jeepney phaseout would be canceled to ensure that drivers and small operators would be able to keep their livelihoods.<ref>{{Cite news |last=Lalu |first=Gabriel Pabico |date=2023-12-25 |title=Makabayan's Christmas wishlist: Halt jeepney phaseout, secure long-term peace |url=https://newsinfo.inquirer.net/1879550/makabayans-christmas-wishlist-halt-jeepney-phaseout-secure-long-term-peace |access-date=2024-01-12 |newspaper=Philippine Daily Inquirer |language=en}}</ref>

Church groups such as the Catholic Bishops' Conference of the Philippines (CBCP), Caritas Philippines, and Philippine Misereor Partnership, Inc. said the program should consider the effect on families and jobs. The CBCP called on the government to "ensure a just transition that protects the livelihoods of jeepney operators and drivers".<ref>{{Cite web |last=Reyes |first=Ronald O. |date=2024-01-16 |title=Church, rights body push for 'inclusive, just transition' of jeepney modernization as phaseout deadline looms |url=https://www.sunstar.com.ph/tacloban/church-rights-body-push-for-inclusive-just-transition-of-jeepney-modernization-as-phaseout-deadline-looms |access-date=2024-01-23 |website=SunStar |language=en}}</ref>

Labor groups Trade Union Congress of the Philippines, Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Center of United and Progressive Workers) and Federation of Free Workers criticized the loss of jobs that the modernization program will cause.<ref name=":4">{{Cite web |last=Robles |first=Raissa |date=2024-04-30 |title=Philippine business leaders join call to save jeepneys from phase-out plan |url=https://www.scmp.com/week-asia/economics/article/3260976/save-jeepneys-philippine-business-leaders-join-call-suspend-modernisation-cultural-icon |archive-url=https://web.archive.org/web/20240515144540/https://www.scmp.com/week-asia/economics/article/3260976/save-jeepneys-philippine-business-leaders-join-call-suspend-modernisation-cultural-icon |archive-date=May 15, 2024 |access-date=2024-05-17 |website=South China Morning Post |language=en}}</ref>

Business leaders from the Philippine Chamber of Commerce and Industry, the Employers Confederation of the Philippines, and the Philippine Exporters Confederation Inc. criticized the negative impact the modernization program will have on the livelihoods of jeepney operators, drivers, and drivers' families.<ref name=":4" />

==== Possible fare increase ==== Transport group PISTON claims that commuters will be hit with an increased fare of at least ₱20.<ref name=":0">{{cite web |date=October 15, 2017 |title=Transport groups to stage 2-day strike to protest vs jeepney 'phase-out scheme' |url=http://newsinfo.inquirer.net/938068/protest-against-jeepney-phaseout |website=Inquirer.net}}</ref> Manibela suggested a minimum fare increase of ₱25 to ₱30 to cover the cost of acquiring a modern jeepney.<ref>{{Cite web |date=December 28, 2023 |title=Manibela: ₱25-₱30 jeepney fare needed to cover cost of modernization |url=https://www.cnnphilippines.com/news/2023/12/28/fare-hike-puv-modernization.html |access-date=2024-01-11 |website=CNN |language=en |archive-date=January 4, 2024 |archive-url=https://web.archive.org/web/20240104030610/https://www.cnnphilippines.com/news/2023/12/28/fare-hike-puv-modernization.html |url-status=dead }}</ref> Research group IBON Foundation estimates that fares could increase to ₱50 within 5 years (from the current minimum fare of ₱13) owing to the corporatized setup of the modernization program.<ref>{{Cite web |last=Relativo |first=James |date=January 3, 2024 |title=P50 minimum jeepney fare 'seen in 5 years' under PUV modernization |url=https://www.philstar.com/headlines/2024/01/03/2323180/p50-minimum-jeepney-fare-seen-5-years-under-puv-modernization |access-date=2024-01-11 |website=Philippine Star}}</ref>

A 2023 policy paper by the University of the Philippines Center for Integrative and Development Studies argues that the high cost of modern jeepneys will result in the cost being borne by commuters.<ref name=":3">{{Cite web |last=de Santos |first=Jonathan |date=April 2, 2023 |title=UP paper: Jeepney 'modernization' risks corporate takeover of transport sector |url=https://www.philstar.com/headlines/2023/04/02/2256307/paper-jeepney-modernization-must-be-participative-recognize-transport-public-good |access-date=2024-01-11 |website=Philippine Star}}</ref>

At a roundtable discussion at the University of the Philippines in 2024, retired University of the Philippines scientist Teodoro Mendoza said that claims of the DOTr and the LTFRB that there will be no fare increases are false. He estimated fares of ₱27 to ₱40 based on a modern jeepneys price of ₱2.5 million. Jeepney manufacturer Sarao Motors said fares will increase given the high monthly loan amortization that operators will have to pay to banks.<ref>{{Cite web |last=Yu |first=Lance Spencer |date=2024-04-08 |title=Can jeepney fares stay at P15 after modernization? Experts fear it could double. |url=https://www.rappler.com/business/jeepney-fare-hike-after-modernization-experts-fear-double/ |archive-url=https://web.archive.org/web/20240721110842/https://www.rappler.com/business/jeepney-fare-hike-after-modernization-experts-fear-double/ |archive-date=July 21, 2024 |access-date=2024-08-02 |website=Rappler |language=en-US}}</ref>

==== Effect on livelihoods ==== According to Kilusang Mayo Uno (KMU) and PISTON, the ₱1.4 million to ₱1.6 million cost of new jeepneys will adversely affect the livelihood of 600,000 public utility jeepney (PUJ) drivers and 300,000 small operators.<ref name=":0" /> For drivers, operators, and other transport stakeholders, the modernization may result in possible losses of jobs and businesses.<ref>{{Cite journal |last1=Guno |first1=Charmaine Samala |last2=Collera |first2=Angelie Azcuna |last3=Agaton |first3=Casper Boongaling |year=2021 |title=Barriers and Drivers of Transition to Sustainable Public Transport in the Philippines |journal=World Electric Vehicle Journal |language=en |volume=12 |issue=1 |pages=46 |doi=10.3390/wevj12010046 |doi-access=free}}</ref>

The Land Transportation Franchising and Regulatory Board said that 38,000 drivers could lose their jobs, based on the number of unconsolidated jeepneys as of January 2024.<ref>{{Cite web |last=Cruz |first=Beatriz Marie |date=2024-01-10 |title=38,000 drivers could lose jobs with modernization |url=https://www.bworldonline.com/the-nation/2024/01/10/568172/38000-drivers-could-lose-jobs-with-modernization/ |access-date=2024-01-13 |website=Business World |language=en-US}}</ref>

In a 2023 petition filed before the Philippine Supreme Court, transport groups argued that the modernization plan violated the right of jeepney drivers to gainful employment and livelihood and would result in worsening social inequality in the country.<ref>{{Cite news |last=Santos |first=Tina G. |date=2023-12-21 |title=SC asked to press the brakes on jeepney phaseout |url=https://newsinfo.inquirer.net/1877870/sc-asked-to-put-brakes-on-jeepney-phaseout |access-date=2023-12-23 |newspaper=Philippine Daily Inquirer |language=en}}</ref>

The Philippine Commission on Human Rights said in a January 2024 statement that the modernization plan should not be done at the expense of jeepney operators' right to a sustainable livelihood.<ref>{{Cite web |last=Relativo |first=James |date=January 12, 2024 |title=CHR fears PUVMP may jeopardize 'right to sustainable livelihood' |url=https://www.philstar.com/headlines/2024/01/12/2325299/chr-fears-puvmp-may-jeopardize-right-sustainable-livelihood |access-date=2024-01-12 |website=Philippine Star}}</ref>

===== Job loss among jeepney manufacturers ===== According to Elmer Francisco of Francisco Motors, many workers at jeepney manufacturers such as Francisco Motors, Sarao Motors, Melford, Armak, Wild Country, Hayag, and Morales Motors have already lost their jobs owing to uncertainties brought about by the push for the modernization program.<ref>{{Cite web |last=Yu |first=Lance Spencer |date=2024-01-09 |title=Anti-poor? How gov't defends PUV modernization, why jeepney stakeholders oppose it |url=https://www.rappler.com/business/anti-poor-government-defends-puv-modernization-jeepney-stakeholders-oppose-it/ |access-date=2024-01-11 |website=Rappler |language=en-US}}</ref>

=== Protests === {{see also|2017–2019 transport strikes in the Philippines|2023–2024 transport strikes in the Philippines}} The transport group Stop and Go Coalition held a strike on September 24, 2017.<ref>{{cite web|title=Why some transport groups oppose PUV modernization|url=https://www.philstar.com/headlines/2017/09/26/1742854/why-some-transport-groups-oppose-puv-modernization|website=Philstar.com|access-date=September 26, 2017}}</ref> On October 16 and 17, PISTON held a two-day transportation strike.<ref>{{cite web|last1=Roxas|first1=Pathricia Ann|title=No classes at all levels, no gov't work on Monday – Malacañang|date=October 15, 2017 |url=http://newsinfo.inquirer.net/938007/breaking-news-malacanang-transport-strike-salvador-medialdea-piston-jeepney-modernization-class-suspension|access-date=October 16, 2017}}</ref> In a press statement, Alliance of Concerned Transport Organizations President Efren de Luna stated that their group did not join the transport strike as they found that PUV modernization wants to ensure the security of passengers and to have an environmentally sustainable mode of transportation.<ref name="philstar.com" />

Manibela held a 3-day strike in November 2023 to protest the PUV Modernization Program. Members of Pasang Masda and FEJODAP joined the strike according to Manibela.<ref>{{Cite web |last= |first= |date=2023-11-22 |title=MANIBELA starts 3-day transport strike vs PUV modernization program |url=https://www.gmanetwork.com/news/topstories/nation/889178/manibela-starts-3-day-transport-strike-vs-puv-modernization-program/story/ |access-date=2023-12-12 |website=GMA News Online |language=en}}</ref>

==Corruption allegations== In October 2023, Senator Grace Poe called on the Department of Transportation to suspend the implementation of the jeepney modernization program amid corruption allegation in the LTFRB. LTFRB Chair Teofilo Guadiz III was suspended over corruption allegations related to the granting of route franchises.<ref>{{Cite news |date=October 10, 2023 |title=LTFRB corruption allegations could be roadblock for jeepney modernization |url=https://www.abs-cbn.com/news/10/10/23/ltfrb-irregularities-could-be-roadblock-for-jeep-modernization |work=ABS-CBN News}}</ref>

The House of Representatives was set to begin in January 2024 an inquiry into allegations of corruption relating to the modernization program.<ref>{{Cite news |date=January 7, 2024 |title=House panel readies probe into alleged corruption in PUV modernization |url=https://www.abs-cbn.com/news/01/07/24/house-panel-readies-probe-into-alleged-corruption-in-puv-modernization |work=ABS-CBN News}}</ref>

===Legal issue=== On May 14, 2024, the Supreme Court of the Philippines, instead of issuing a TRO, required the defendants Department of Transportation and the Land Transportation Franchising and Regulatory Board to Answer within 10 days, the April 29 temporary restraining order-supplemental petition of PISTON. On the Public Utility Vehicle Modernization Program, the Court further required submission of status updates on consolidating PUV franchises on a per-route basis, on the Local Public Transport Route Plan per locality and the Route Rationalization Plan, and the hearings before the House of Representatives, said SC Court Spokesperson Attorney Camille Sue Mae L. Ting.<ref>{{cite news |last1= Torres-Tupas|first1=Tetc |title=SC asks DOTr, LTFRB to comment on PUV modernization TRO plea|url= https://newsinfo.inquirer.net/1940558/sc-asks-dotr-ltfrb-to-comment-on-puv-modernization-tro-plea|accessdate=May 16, 2024 |publisher= Philippine Daily Inquirer|date=May 14, 2024}}</ref><ref>{{cite news |last1= Torres-Tupas|first1=Tech |title=Transport group asks SC to stop April 30 PUV consolidation deadline|url= https://newsinfo.inquirer.net/1935004/puv-modernization-2#ixzz8aCZmOzbJ|accessdate=May 16, 2024 |publisher= Philippine Daily Inquirer|date=April 29, 2024}}</ref>

==See also== {{Portal|Transportation|Philippines}} * Transportation in the Philippines * Jeepney * Taxicabs of the Philippines

== References == {{reflist}}

{{commons category|Public Utility Vehicle Modernization Program}}

Category:Share taxis Category:Public transportation in the Philippines Category:Road transportation in the Philippines Category:Decorated vehicles Category:Duterte administration controversies Category:2018 controversies Category:2019 controversies