‘STOP DILLY-DALLYING’: DOTr accused of causing financial meltdown of WV transport coops

By Rjay Zuriaga Castor

The Western Visayas Transport Cooperative (WVTC) criticized what it described as the Department of Transportation’s indecisiveness in implementing the Public Utility Vehicle Modernization Program, saying this has driven many transport cooperatives to bankruptcy.

WVTC General Manager Halley Alcarde admitted that while some cooperatives are facing internal challenges, particularly in governance and management, their financial struggles are largely a result of the DOTr’s “dilly-dallying” in enforcing the modernization policy.

“Let’s put an end to the dilly-dallying. If we want to modernize, let’s all go modernized,” he said.

The PUVMP implementation has seen several extensions to the franchise consolidation deadline.

Initially, the program set the deadline to consolidate public utility vehicles by Dec. 31, 2023.

However, due to requests from the transport sector and ongoing adjustments, President Ferdinand Marcos Jr. granted a three-month extension, moving the deadline to April 30, 2024.

This extension aimed to give those operators who had expressed intent to consolidate but missed the previous cutoff another chance to join the program.

Following this, in October 2024, the Land Transportation Franchising and Regulatory Board announced another short extension, granting 45 more days until Nov. 29, 2024, to accommodate remaining consolidations after a Senate resolution requested deferral.

Alcarde said these repeated extensions have undermined the program’s credibility and created unfair competition.

“Most cooperatives are struggling because even when we have already bought modern units for our awarded routes, the traditional jeepneys remain on the road,” he said.

Alcarde urged the government to make a firm decision on whether to continue or suspend the PUVMP, saying cooperatives cannot keep operating in a “policy limbo.”

“There is no strong will in the part of the DOTr for the elimination of colorum vehicles on the streets,” he added.

BIGGER SUBSIDY URGED

He also appealed for an increase in the government’s equity subsidy, currently set at PHP 210,000 per unit for Class 1 modern vehicles and PHP 280,000 per unit for Class 2 to 4 units.

This small subsidy, he added, forces cooperatives to take out large loans, leading to high monthly amortization payments that other transport groups argue are financially unsustainable given current fare structures.

Alcarde said that modern PUVs now cost between PHP 1.6 million and PHP 2.8 million each.

He criticized what he described as the government’s “misplaced priorities,” with funds focused more on infrastructure projects instead of services that directly affect the daily lives of the Filipino people.

“They should allocate a bigger budget in the equity subsidy of modernized jeepneys so that we can implement the replacement of the traditional units that are still plying,” he said.

“If our DOTr is sincere, we welcome the subsidy up to 1 million for each unit,” he added.

Alcarde also warned that many transport workers stand to lose their livelihoods due to route rationalization under the PUVMP.

He called on the government to provide financial and livelihood assistance to displaced drivers and operators.

“They can give assistance through various livelihood projects and provide funds to those who finish training. If we train our disenfranchised members but do not give them capital, the training will be useless,” he said.