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Tretran Puvmp HW

The document outlines the 10 components of the Philippines' Public Utility Vehicle Modernization Program (PUVMP) which aims to modernize jeepneys. The key components include regulatory reform, rationalizing routes, modernizing the jeepney fleet, and providing industry consolidation and financing assistance. The modernized jeepneys will be more environmentally friendly, safer, and more convenient with features like side doors, speed limiters, and WiFi. However, the huge capital costs of the new vehicles and loss of livelihood for some drivers and operators are disadvantages of the program.

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Leandro Vicerra
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100 views4 pages

Tretran Puvmp HW

The document outlines the 10 components of the Philippines' Public Utility Vehicle Modernization Program (PUVMP) which aims to modernize jeepneys. The key components include regulatory reform, rationalizing routes, modernizing the jeepney fleet, and providing industry consolidation and financing assistance. The modernized jeepneys will be more environmentally friendly, safer, and more convenient with features like side doors, speed limiters, and WiFi. However, the huge capital costs of the new vehicles and loss of livelihood for some drivers and operators are disadvantages of the program.

Uploaded by

Leandro Vicerra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Modernization of Jeepneys

A. Policy

Ten Major Components of Public Utility Vehicle Modernization Program (PUVMP)


1. Regulatory Reform
Main Features:
a. Local Public Transport Route Plan
b. Vehicle Specifications
c. Operator Requirements
d. Transition Period

2. LGU Local Public Transport Route Planning


LGUs are being required to arrange their public transportation route plane
in line with the PUVMP. The plans will be based on existing and projected travel
patterns.

3. Route Rationalization
Under this component, the program will identify routes that are cost
effective for passengers and commercially viable for operators. New routes will
also be identified as well as expansion of transit lines.

4. Fleet Modernization
New vehicle standards have been formed in partnership with involved
government agencies, jeepney associations and local and international
manufactures. These standards are made to design a modern PUV that is
environment- friendly, safe, secure and convenient.

5. Industry Consolidation
The traditional jeepney industry usually follows the “one franchise, one
unit” principle. Under the PUVMP, there will be a formation of legal entities:
cooperatives, corporation, or consortium, to have more efficient operations.

6. Financing PUV Modernization


The program implements financing assistance through loans that aims to
soften the financial impact on major stakeholders (drivers and operators). In
addition, through the Department of Transportation’s Department Order 2020-
006, existing PUV operators with valid franchises and are applying for new and
developmental routes under PUVMP are qualified for an equity subsidy in the
fixed amount of P160,000 which was previously P80,000 only.

7. Vehicle Useful Life Program


A program under PUVMP which consists of policies that are concerned
with the different stages of the vehicle’s useful life such as the provision of a
Motor Vehicle Type Approval System for new vehicles, maintenance programs,
improvement of Motor Vehicle Inspection System, and a Scrappage Program for
end-of-life vehicles.

8. Pilot Implementation
The PUVMP will conduct a Pilot Implementation to review and assess
whether the new policies are efficient in achieving the desired outcomes of the
program.

9. Stakeholder Support Mechanism


The PUVMP asked TESDA for assistance in providing skills training and
social assistance to stakeholders affected by the PUVMP. Drivers and operators
who may be affected by the said program will be offered training on proper unit
maintenance, financial management, fleet management and dispatching, etc. in
addition, drivers who wish to voluntary exit from the industry will also be provided
with livelihood training programs and skills enhancement activities to have
appropriate skills to acquire new jobs.

10. Communication
Cooperative members, operators, and drivers are welcome to participate
in forums to share and clarify their respective concerns on the PUVMP. Such
events are organized as part of the information campaign of the program.

PUV Requirements Under the Omnibus Franchise Guidelines


 Clean Air Act compliant engine: Euro 4 emission or better. Electric, Solar,
Alternative Fuel
 Side door
 Speed limiter
 CCTV
 GPS
 Dashboard Camera
 Automatic Fare Collection System
 Free Wi-Fi

B. Advantages
 Safer, more secured and comfortable travel experience for commuters due to
additional features (side door, speed limiter, GPS, CCTV, DashCam, Wi-Fi)
 Health and environmental-friendly due to low emissions by new engines that
are compliant with international standards
 Drivers no longer need to compete with other drivers to earn his boundary
because of the fixed salary with the addition of other benefits
 Less accidents, chaos and traffic violations on street because of competition
among drivers
 More convenient payment system provided by the tap card-based fare
collection system
C. Disadvantages
 Huge capital cost (modern jeepneys cost about P1.2 million to P1.6 million
per unit)
 Operators may not profit for a long time while paying for the new franchise
 Loss of livelihood for a lot of drivers and operators who cannot afford to
purchase new unit/s

D. References
DOTr, TESDA ink MOA for Stakeholder Support Mechanism of the PUVMP. (2018,
December 12). Retrieved September 16, 2020, from
https://www.southeastasianews.net/news/262769732/modern-puv-caravan-goes-
to-tandag-city.
LTFRB. (n.d.). PUV Modernization. Retrieved September 16, 2020 from
https://ltfrb.gov.ph/puv-modernization-2/#:~:text=The%20PUVMP%20is%20not
%20merely,road%20based%20public%20transport%20services.
LTFRB Website Administrator. (2020, June 29). PUVMP SUBSIDY DOUBLED TO
160K. Retrieved September 16, 2020, from https://ltfrb.gov.ph/puvmp-subsidy-
doubled-to-160k/.
Navales, R. (2019, November 15). DOTr orders LGUs to set up transport route plan.
Retrieved September 16, 2020, from
https://www.sunstar.com.ph/article/1832141/Pampanga/Local-News/DOTr-
orders-LGUs-to-set-up-transport-route-plan.
Philippine Information Agency. (2019, October 17). Modern PUV caravan goes to
Tandag City. Retrieved September 16, 2020 from
https://www.southeastasianews.net/news/262769732/modern-puv-caravan-goes-
to-tandag-city.

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