BY GEROME DALIPE IV
ILOILO City – For most jeepney drivers and operators, it’s a situation of “damned if you do, damned if you don’t.”
They have until April 30, 2024, to join an existing transport cooperative or corporation or to form their own. However, they are likely to lose their franchise.
Despite his promise that the Dec. 30, 2023, deadline would remain unchanged, President Ferdinand Marcos Jr. approved the recommendation of Transportation Secretary Jaime Bautista for a “final” consolidation on April 30. This flip-flopping decision has worried several transport cooperatives in Western Visayas.
Raymundo Parcon, president of the Western Visayas Transport Cooperative (WVTC), warned yesterday that many transport cooperatives in Region 6 are on the brink of bankruptcy due to the government’s indecisive stance on the consolidation period.
“The transport cooperative will suffer if the government does not finalize the consolidation deadline. Many transport cooperatives are actually on the verge of bankruptcy. They have existing loans with banks that they cannot repay on time,” Parcon told Panay News.
Parcon mentioned that several transport cooperatives in the city and province of Iloilo sent a letter to the House of Representatives, lobbying the government to finalize the consolidation deadline on April 30.
“We are appealing to our leaders and congressmen to help us lobby the President to finalize the consolidation deadline. We hope that April 30 will be the last deadline for consolidation,” said Parcon.
The government has extended the deadline for the consolidation of public utility vehicles (PUV) for the fifth time since 2022 to provide additional time for drivers and operators who did not meet the deadline to consolidate. This means that unconsolidated jeepneys and even UV Express nationwide may still operate on their usual routes until April 30.
“There will be no arrests regarding franchise matters,” declared Land Transportation Franchising and Regulatory Board (LTFRB) Chairman Teofilo Guadiz III in a press conference a day after Marcos announced the April 30 extension. This extension marks the fifth one for jeepney drivers and operators to join or form their cooperative or corporation.
After the April 30 extension, those who fail to consolidate will be considered “colorum.” Under the PUV Modernization Program, jeepneys and UV Express are required to either join or form a transport cooperative or corporation to continue operations.
“This is the final extension. Three months should be enough time for those who wish to consolidate and comply with the requirements,” Secretary Bautista was quoted as saying on January 25.
In an interview, Parcon mentioned that Marcos’ indecisiveness is adversely affecting transport cooperatives in Western Visayas that have taken out millions of pesos in bank loans to finance the purchase of modernized jeepney units.
Parcon, whose cooperative has nearly 5,000 members across the region, stated that their modernized units are competing with traditional jeepneys due to the consolidation extension. He noted that some of the traditional jeepney units do not even have valid franchises.
Launched in June 2018, the PUV Modernization Program is the flagship non-infrastructure project of former President Rodrigo Duterte, aiming to phase out PUVs aged 15 years or older.
The program promises a “comfortable, safe, reliable, convenient, affordable, and environmentally sustainable” public transportation system in the country, including a “safer and more environmentally-friendly transport system” with the introduction of jeepneys powered by Euro 4 engines or electrically-powered engines with solar panels for roofs.
Under the program, drivers and operators are assured of stable, sufficient, and dignified livelihoods, while commuters are promised quick, safe, and comfortable travel.
Local government units are empowered to draft their route planning, as they are more knowledgeable about the terrain and passenger demand within their jurisdiction. Every city or municipality must also submit its Local Public Transport Plan (LPTRP) as a prerequisite for the opening of PUV franchises within their area.
However, several transport and cause-oriented groups have criticized the program as “anti-poor,” arguing that a new jeepney unit could cost approximately P2.4 million per unit.
They also pointed out that only multi-million peso companies could afford the new “fleet management system,” which requires a minimum of 15 units per franchise.
Transport leaders have also raised concerns that some components of the program are disadvantageous to transport cooperatives, such as the requirement to purchase modern units costing up to P2.8 million, which would burden the cooperatives despite the government’s promised subsidy of P160,000./PN
