The proposed public utility vehicle modernization program that aims to replace old jeepney models with environment-friendly vehicles has raised eyebrows among transport groups in Manila.
Thousands of jeepney drivers were alarmed over the possibility of losing their jobs, while some overseas Filipino workers (OFWs) who invested jeepneys for the livelihood of their families back home fear that their hard-earned money will burn to ashes.
However, the government, through the Land Transportation Franchising and Regulatory Board (LTFRB), has something to offer.
LTFRB board member Aileen Lizada said the government greenlighted the plan to allocate P2.26 billion to cover the equity for at least 28,345 units until 2018.
The government will grant a P80,0000 subsidy as equity for Land Bank of the Philippines’ P1.6 million loan package for the modernization program.
Around 200 drivers from Senate Employees Transport Service Cooperative, Taguig Transport Service Coop and the Pateros Fort Bonifacio Transport Service Multipurpose Coop as beneficiaries of the program’s pilot.
Even with the subsidy, jeepney drivers will need to pay P800 daily for seven years to pay for the loan.
LTFRB’s PUV modernization program seeks to modernize majority of 180,000 operating jeepney units in the country.
George San Mateo, president of PISTON transport group, said his group condemns the modernization program over fears of leaving thousands of Filipinos jobless. He also called on the government to opt for jeepney rehabilitation instead of replacing old units with new models.
Photo Credit: Stefan Munder via Wikipedia
