Position Paper On Dotr'S Puv Modernization Program: Posted: October 19, 2017

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Position paper on DoTr's PUV

Modernization Program
Posted:
October 19, 2017
1. AGHAM – Advocates of Science and Technology for the People believes that efficient and
affordable, safe, reliable, efficient, clean transport services is a public utility which the
government has the obligation to provide. Serving multiple linkages, a mass transportation
system is crucial in setting up a dynamic and industrial economy.

2. The PUV Modernization Program and Omnibus Franchising Guidelines (OFG) is not the
genuine modernization that can address the transportation problems of the country rooted in
the lack of a public mass transport system.

3. The issue of the jeepneys is not detached from that of the whole mass transportation system.
Due to the inadequacy of current mass transport, jeepneys and other forms of informal public
transport have become the main provider of transportation services for most of our riding public
especially the low income working class. The conflicting roadmaps and policies on developing
mass transport, coupled with privatization schemes of the existing systems (e.g. MRT/LRT)
have resulted to the situation that we are in.

4. Without a clear plan for a mass transport solution for urban centers and rural areas, the
government should instead support and subsidize the informal public transport alternatives like
the jeepneys which has taken up the slack. The government should not burden the small
drivers and operators with expensive alternatives and financing schemes and should instead
replace their vehicles with minimal or no-cost to them.

5. Such a “palit-jeep” program will directly benefit drivers and small operators, and the
commuting public as a whole. It will also make the rehabilitation and uptake of new
technologies faster instead of putting the burden to the already impoverished jeepney drivers.
Evaluation for road worthiness should be done at a per-unit basis instead of a fixed standard as
“older than 15 years” which now stands.

6. Capital expenditures such as construction of terminals should be shouldered by the


government, at the same time, it should make available maintenance and repair shops to
upgrade current vehicles while new replacements are brought in.

7. This palit-jeep program should be implemented in the context of an industrial policy that will


truly develop a PUV manufacturing based on requirements such as genuine local content and
not merely localized content (of auto TNCs located in the country and/or imported vehicle parts
including but not limited to motor and chassis). Instead of favoring foreign-owned companies
with factories inside the country, government should subsidize local car manufacturing
companies. This should be complemented by a program of technology transfer to ensure that a
genuine domestic PUV manufacturing sector, not only of body parts but primarily of the main
components, is being developed.
8. The government should invest in formal mass transport such as rails. Studies have shown
that government investment in formal transit modes benefits commuters such as in the case of
Brazil where commuters roughly benefited 100 to 200 dollars per commute per year (Golub et
al., 2009).[1]

9. The government should pursue a comprehensive program for mass transport system that will
serve the needs of national industrialization and rural development, facilitate regional dispersal,
and is affordable to low-income working people. This program shall be oriented towards State
ownership of major transport utilities and operation of comprehensive nationwide system of
land and sea transport complementing railway transport system. The government should
ensure people’s participation in planning and management of the transport system, traffic
governance, and in defining transport fares.

[1] Golub et al. (2009). Regulation of the informal transport sector in Rio de Janeiro, Brazil: welfare
impacts and policy analysis. Transportation 36:601-616.
*This position paper was submitted to the Congressional Committee on Transportation during a
committee hearing on October 19, 2017. This paper was submitted to support House Resolution No.
833 filed by Bayan Muna Rep. Carlos Zarate, urging the Committee on Transportation to conduct an
investigation on the PUV Modernization Program.

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