DOTr-LTFRB’s RESPONSE TO MR. WALDEN BELLO’s STATEMENT REGARDING THE PUV MODERNIZATION PROGRAM
WALDEN BELLO: 'Yung modernization nila ng PUV system nila, they took away, they defrauded so many people and consolidated the whole PUV system into three bus companies, corruption 'yan.
RESPONSE:
The statement reflects an utter ignorance of invariably the largest non-infrastructure project of the Duterte Administration.
At the outset, we categorically deny Mr. Walden Bello’s accusations of corruption in the PUV Modernization Program. It is also not true that the whole PUV system has been consolidated into three bus companies. Based on our records, as of March 04, 2022, there are 1,659 transport corporations and cooperatives operating PUVs on various denominations nationwide. For PUBs, we have 131 consolidated operators.
We believe in the basic principle that Public Transport is a Public Need for which Government should address said Need in a comprehensive and systematic manner.
The Public Utility Vehicle Modernization Program (PUVMP) is 10-component program which addresses key issues plaguing the decades-old problems in our public transportation services in the country. Among these issues are,
First, the problem with so many franchises issued over decades which do not aptly address demand. For instance, so many franchises are issued on a route, thus it developed into a culture of on-street competition between and among bus operators and drivers. PUVs are to run routes in an efficient, dependable, and systematic manner for the benefit of commuters, and not to compete against each other. Hence, the need to consolidate the highly fragmented public transport industry in the country.
Second, there has not been a serious, comprehensive study to plan routes that address seamless inter-connectivity of routes as well as establish inter-connectivity of modes (i.e., rail to bus, bus to PUJs, etc.) of public transport (PT), but only under this administration. There is an urgent need for comprehensive route rationalization studies. On this note, for route planning of local routes, the local government units (LGUs), namely the provinces, cities, and municipalities, understand better their respective public transport need, thus, it is the LGUs which craft their own Local Public Transport Local Plan or LPTRP.
Third, it addresses the decades-old problem of the "boundary system" or simply the rent of the PUV, where drivers are entirely dependent on ridership. Now that routes are run by qualified Transport Service Cooperatives (TSCs) and corporations, the drivers paid on salary with benefits, and are assured of security of tenure.
Fourth, the replacement of old and dilapidated PUVs with modern, comfortable and environment-friendly units. It must be emphasized that the PUVMP is a program that covers all modes of road-based public land transport - from buses to PUJs. The government, through the Development Bank of the Philippines (DBP) and the Landbank of the Philippines (LBP), offer very reasonable financing with favorable terms that are responsive to the needs of transport corporations and cooperatives and allow smooth transition to modern PUVs. Both banks provide loans to cover 95% of the acquisition cost of the vehicle, with the remaining 5% fully subsidized by the government. Transport corporations and cooperatives are given 7 years to repay said loans, with a grace period of 6 months, under a fixed interest rate of 6% per annum.
Fifth, the adoption of fleet management system by operators on their routes gives them the ability to regulate headways and manage vehicle utilization to prevent the present fragmented market structure. In this manner, and as mentioned above, PUVs are now being run in an efficient, dependable, and systematic manner for the benefit of commuters.
Sixth, social support program is a key element in the program implementation, which gives options to affected transport workers, to either provide enhancement skills and additional competencies if they chose to continue working within the public transport industry or to enroll in alternative livelihood and enterprise related trainings for those who opt to take other livelihood programs outside of the public transport industry. Among the social support programs currently implemented, are the enTsuperneur Program, in partnership with DOLE, and the Tsuper Iskolar program, in partnership with TESDA.
In closing, we wish to express that no administration has ever gone this far in modernizing our country’s public transportation system in such a profound and comprehensive manner, adopting an all-inclusive approach, except the current administration. Given its magnitude and comprehensive impact on our society, the Program entails the cooperation of national agencies, including the DOF, NEDA, TESDA, DOLE, DTI, DENR, and DSWD, among others.
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