Senator says PUVMP in bureaucratic crisis

ILOILO CITY — Senator Francis Tolentino joined the call for a suspension of the Public Utility Vehicle Modernization Program (PUVMP), citing the bureaucratic crisis as the main obstacle to the implementation of the program.

“The problem arose because of a bureaucratic initiative that led to a bureaucratic crisis and brought about the need for a bureaucratic solution,” Tolentino told the Manila Times on Friday.

“I have joined the call of some of my colleagues to take a break and study,” he added.

In a committee hearing on July 23, Senate President Francis Escudero asked Senator Raffy Tulfo to file a resolution calling on President Ferdinand Marcos Jr. to temporarily halt the program.

Tolentino criticized the Land Transportation Office and the Land Transportation Franchising and Regulatory Board for inconsistencies in implementing the program.

The Senator said that since its introduction in 2017, the PUVMP has caused a number of problems in the transport sector, significantly impacting commuters.

Tolentino also pointed out that credit subsidies for PUV operators purchasing modern jeepneys are inadequate.

“The government subsidies for jeepney cooperatives are not enough. They really cannot cover everything. Even if you spend P6.3 billion, it is still not enough,” he said.

The Department of Transportation will provide an equity subsidy of P280,000 per unit to PUV operators purchasing Class 2, 3 or 4 units, while buyers of Class 1 PUV units will receive a subsidy of P210,000 per unit.

The loan subsidy is part of the “5-6-7-8” financing package for jeepney drivers and operators that provides access to loan programs from state-run banks. The package includes a 5 percent down payment, a 6 percent interest rate, a seven-year repayment period and a P80,000 subsidy per unit.

According to state-owned banks, a modern e-jeepney costs between 2.3 and 2.8 million pesos (about 2.4 to 2.8 million euros). Some politicians argue that transport cooperatives need up to 7,000 pesos (about 7,000 euros) per day to repay their loans and provide drivers with sufficient income for their families.

Tolentino added that a “balance” still needs to be found, pointing to the “need to modernize and create efficient means of transport.”