‘NO CONSULTATION’: LTFRB-6, City Hall reject entry of ‘green taxis’ amid 3-year moratorium

By Rjay Zuriaga Castor 

The push to bring in 1,000 electric taxis to Iloilo City ended at the starting line, with local authorities rejecting Green and Smart Mobility Philippines Inc. (Green GSM) franchise request due to an existing moratorium and the lack of consultation with the local government.

Land Transportation Franchising and Regulatory Board Western Visayas (LTFBR-6) assistant director Atty. Salvador Altura said Monday that the agency has already committed to local operators that no additional taxi units will be approved for the next three years.

“We will definitely stick with our commitment that there will be a moratorium of taxi units,” he said.

The three-year moratorium for additional taxi and TNVS units was only an informal and verbal commitment from the LTFRB-6. The moratorium was made at the request of the local taxi operators, according to Altura.

The LTFRB-6, Association of Taxi Operators in Panay (ATOP), and other transport groups met with Iloilo City Mayor Raisa Treñas-Chu on Monday to discuss Green GSM’s proposal.

Treñas-Chu said the city is aligned with LTFRB-6’s three-year suspension on new taxi franchise applications. She also criticized Green GSM for stating in its letter that it had coordinated with the local government.

“There was no proper consultation with the LGU, even if they claimed there was ‘coordination/representation.’ This is a form of misrepresentation because we never met them,” she said.

“We welcome proposals using electric vehicles, but we also need to protect our existing taxi operators,” she added.

On November 7, LTFRB-6 director Richard Osmeña wrote a letter to the city government to consult on the proposal, although he noted that the LTFRB-6 is “inclined to refuse favorable endorsement of the request of Green GSM.”

With their recommendation to reject the granting of the franchise, Altura said the matter carries significant weight because the LTFRB central office normally does not refer applications to the regional office for evaluation and comment.

Altura added that the use of electric vehicles is not exclusive to new applicants.

“There are many taxi operators here who are converting a unit from the traditional gasoline-fed to electric,” he said, noting that if the concern is promoting cleaner air, local transport operators “already have that in mind.”

He also clarified that the allocation is determined by the Franchise Planning and Monitoring Division (FPMD) of the LTFRB Central Office, which evaluates the sufficiency or insufficiency of specific transport modes in a locality.

Altura clarified that LTFRB-6 does not have the capacity to determine whether Iloilo City still has enough carrying capacity for additional taxi units, as the task is within the FPMD.

“They are in charge of data and population and ridership on demand. We just submit a report and they have a way of evaluating that,” he said.

ATOP President Perfecto Yap also opposed Green GSM’s entry, stressing that taxi ridership has “dwindled” since January.

“Our observation would tell us that for every single passenger, four units have to compete for that. In terms of supply, more than enough of our supply. That is why we are asking for a moratorium because of that,” he added.

Yap added that their dispatch rate in the past two years ranged from 90 to 10%, but this dropped to 70 to 80% this year, meaning many units are now idling in garages.

While LTFRB-6 has committed to imposing a moratorium, Yap said operators want the declaration formally put in writing.

He also warned against Green GSM’s “deception” in claiming coordination with the local government, noting that ATOP was likewise not consulted about the firm’s planned entry.

Yap said local operators are already considering converting existing gasoline or diesel taxis to electric vehicles.