Councilor calls for delay in PUV modernization

By Joseph Bernard A. Marzan and Mariela Angella Oladive

Iloilo City Councilor Romel Duron this week urged the national government to delay the implementation of the Public Utility Vehicle Modernization Program (PUVMP), pointing to readiness concerns in both the city and the country.

Speaking to reporters on Tuesday, May 7, Duron expressed reservations about moving forward with the PUVMP due to the nascent stage of one of its key components, the Local Public Transport Route Plan (LPTRP).

“For me, it was still premature to implement it because we have the LPTRP. I suggest that the implementations should be by phase since there’s a shift from traditional to modernized,” Duron remarked.

Questioning the city’s preparedness for such a sweeping initiative, Duron asked, “Are we ready to modernize? We will only be ready if the [modern jeepney] units are ready if the operators are ready.”

He highlighted a mismatch in unit demands, noting that the Land Transportation Franchising and Regulatory Board (LTFRB) had approved 2,538 units, which exceeds the city’s actual demand of 1,767 units.

Furthermore, he pointed out the permitting challenges, using the Western Visayas Transport Cooperative (WVTC) as an example, which had 121 consolidated units but was only granted 55 permits.

“And of those 55, only 20 are currently operational. They still need to roll out 35 more units to meet the approval. But what about the remaining 66 units?” Duron questioned, adding concerns about route allocation if the board’s unit allocations per route were already full.

“If they can switch to other routes, that’s fine, but what if those routes are already full? What will happen to them?” he added.

During his privilege speech on Wednesday, May 8, Duron reviewed the history of the city’s LPTRP, indicating that out of 1,782 units allotted to various cooperatives and corporations, only 520 minibus units are currently operating in the city.

He noted the lack of readiness within the WVTC to operate the new units, despite the trainings provided by the Cooperative Development Authority and the Office of Transport Cooperatives.

“There are already problems affecting their operations. Maybe some due to management problems, they are already fighting, partly some are successful. Out of the 16 [entities], we can say that in due time, there would be a possibility that others will be bankrupt because of bad management,” Duron said.

He said that while the PUVMP had good intentions, its implementation remained questionable.

“[The PUVMP] is a good concept. Actually, it should have been done earlier. But the problem lies in its implementation, and of course, management, and government support. From the original price of P1.2 million, now the cheapest is P2.4 million, and only two banks are lending their support to the corporations and cooperatives. […] Most of the private banks do not want to lend (sic), because the studies shows that it may not be successful,” he said.

Halley Alcarde, WVTC general manager, also addressed the city council, attributing the PUVMP implementation challenges to the continued operation of traditional jeepneys under the same “boundary system” model, which he believes undercuts the new modern jeepneys due to direct competition.

“You can imagine, based on the projection that we have submitted to our financial institutions, we have some 29 or 30 units projected to get an income because of the projection that there will no more traditional jeepneys running in those particular routes,” Alcarde said.

“So, we still have direct competition with our traditional jeepney members running the same route. So you can just imagine, that is why, the reason actually, is not mismanagement. It is because of direct competition from our traditional jeepneys,” he added.

The PUVMP, launched by the Department of Transportation in 2017 and fully implemented as of May 1 this year after several deadline extensions, aims to overhaul the public transport system by replacing older jeepneys with modern, eco-friendly vehicles.

Iloilo City was the first to adopt the LPTRP in June 2022, but faced public pushback and logistical challenges, leading to a temporary suspension and only resuming full implementation in 2023.