President orders LTFRB to review PUV modernization

By Rjay Zuriaga Castor

The Office of the President (OP) has directed the Land Transportation Franchising and Regulatory Board (LTFRB) to review the implementation of the Public Utility Vehicle Modernization Program (PUVMP) following a request from the Iloilo City Council.

In a letter dated Aug. 21, the OP instructed LTFRB Chairperson Teofilo Guadiz III to consider the City Council’s July 31 resolution, which called for a reassessment of the program due to concerns about its financial impact on local operators and drivers.

The resolution, authored by Councilor Romel Duron, was passed as the Senate sought to suspend the PUVMP, a push that was eventually scrapped by the president due to high operator compliance.

“The PUVMP is a novel concept but fails in execution and implementation. While this may be applicable to highly urbanized cities, it is not suitable for many other cities or municipalities,” the resolution stated.

Duron highlighted the need for modernization but noted that inadequate resources and a lack of inclusive, multi-stakeholder participation in program planning have placed a burden on drivers and commuters.

He pointed out the rising costs of modern jeepneys, which increased from PHP1.4 million in 2017 to PHP2.4 million in 2024, and called for increased government subsidies to ease the financial strain on drivers and operators.

Duron also emphasized that the PUVMP should not be a one-size-fits-all solution, arguing that it must account for the varying economic conditions across the country.

“There is a need to delay the program, given the plight of many jeepney drivers and operators who cannot afford the high cost of modernized jeepneys. Some are already displaced, making it imperative for the government to review and recalibrate the program to ease the transition,” he added.

Duron initially supported the Senate’s suspension proposal but later reconsidered after the Western Visayas Alliance of Transport Cooperatives and Corporations, Inc. (WVATCCI) emphasized that “the suspension cannot be applied universally” due to the significant investment already made for the program.

WVATCCI, which consists of 14 transport cooperative members with over 3,000 operators, has invested PHP1.7 billion in the program.