Palace says phasing out of old jeepneys not anti-poor

December 28, 2017

Malacanang reiterated on Thursday that the Public Utility Vehicle Modernization Program (PUVMP) is not anti-poor.

This was contrary to the claims of some transport groups, particularly  the Pinagkaisang Samahan ng mga Tsuper at Operator Nationwide (Piston), which President Rodrigo Duterte called as a leftist group.

"We assure Filipino jeepney drivers that this initiative of the government to improve our public transport sector will not put them out of business," Presidential Spokesperson Harry Roque said in a statement.

He said the modernization program was not designed to phase out jeepneys.

"In fact, the program aims to strengthen and guarantee the profitability of the jeepney business," he said.

Under the program, public transport vehicles, which are at least 15 years old, should be phased out.

Roque said the government agencies, particularly the Department of Transportation (DOTr), are exhausting all efforts not only to improve the transport facilities through the program, but also to ensure the PUV drivers that their concerns regarding it will be addressed.

One of the efforts is the provision of a financing scheme for acquisition of new units available through the Development Bank of the Philippines’ Support Alternative Driving Approaches (Pasada)  Program and Landbank of the Philippines’ Special Environment-Friendly and Efficiently Driven (SPEED) Jeepney Program, he said.

The Department of Finance (DOF) is offering a 5 percent equity, 6 percent interest rate and a repayment period as long as seven years financing package on top of the P80,000 subsidy per unit to cover the equity payment, Roque said.

There is zero or low maintenance cost of new units in the first 3 years, which translates to  savings, he added.

Duterte previously gave an ultimatum to jeepney operators that they have until end of the year to operate old units.

By January next year, he has said he did not want to see anymore old jeepneys plying the streets. Celerina Monte/DMS