BY GEROME DALIPE IV
ILOILO City – The Land Transportation Franchising and Regulatory Board (LTFRB) is being hounded by another issue in the implementation of the Public Utility Vehicle Modernization Program (PUVMP).
Some 258 jeepney routes in Western Visayas failed to meet the required number of awarded units (NAU) of 15, which was the requirement in applying for consolidation that ended last April 30.
The NAU limits the number of vehicles that can operate on a particular route and is considered part of the overall route rationalization plan under the PUV modernization program.
To address such issues, the LTFRB issued Board Resolution No. 053-2024, which in effect, grants authority to operators on low-awarded unit routes.
In the resolution, the LTFRB cited a memorandum circular on the simplified process for applications for consolidation of industry and existing franchise holders under Department Order 2017-011 that required the minimum requirement of at least 15 units in a particular route for consolidation application.
At that time, LTFRB’s Memo Circular No. 2020-084, which pertains to the extension of time to apply consolidation on industry consolidation, allowed the filing of an application for consolidation with less than 15 units if the existing number of authorized units for routes below 15.
Likewise, the above memo circular allowed the acceptance of an application for consolidation involving less than 15 units but not lower than ten (10) units provided that the applicant executes an affidavit of undertaking to complete the remaining units within three (3) months from the date of filing.
However, the LTFRB said the above memo circulars restricted the operators of PUJ and UVE routes with four or below NAU from filing the consolidation application and joining the PUV modernization program. The agency cited the data from the Distribution of Land Transportation Service (DLTS).
The LTFRB stressed that Board Resolution No. 053-2024 will serve as the authority to operate for operators of PUJ and UVE on low NAU routes.
However, the agency clarified that their units are currently registered with the Land Transportation Office with valid personal passenger accident insurance coverage.
Likewise, all LTFRB regional offices are directed to implement the board resolution in coordination with all concerned government agencies.
In Western Visayas, the LTFRB-6 reported a 72.2 percent franchise consolidation rate. In Iloilo City, about 1, 692 jeepneys were consolidated into cooperatives, or 75 percent, out of 2, 266 total traditional units, records from LTFRB-6 in Region 6 showed. Hence, there are about 500 unconsolidated jeepneys that could be plying the streets.
Likewise, some 2,625 traditional jeepneys in Western Visayas were consolidated under the controversial public utility vehicle modernization program (PUVMP).
Lawyer Salvador Altura Jr., LTFRB6 officer-in-charge, earlier said the provisional authority of unconsolidated jeepneys was terminated on April 30.
Launched in June 2017, the PUV Modernization Program is the flagship, non-infrastructure project of former President Rodrigo Duterte. It seeks 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.
But several transport and cause-oriented groups decried the program as “anti-poor,” arguing that the new jeepney unit would cost them roughly P2.4 million per unit.
They also lamented that only multi-million peso companies can afford to buy the new “fleet management system” that sets a minimum of 15 units per franchise.
The transport leaders also claimed that some components of the program are disadvantageous to the transport cooperatives such as forcing the cooperative to avail of the modern units./PN
