Operators failing to modernize PUV by 2020 to lose franchise —DOTr

Department of Transportation (DOTr) Undersecretary Mark de Leon on Sunday warned operators who refuse to comply with the PUV Modernization Program until the 2020 deadline will face revocation of franchise.

“By 2020 bibigyan kayo ng notice, kapag hindi pa kayo gustong mag-modernize, io-open po namin ang inyong prangkisa sa ibang operators,” De Leon said in an interview on Dobol B sa News TV.

“Let's stick to the deadline at kung hindi kayo makaka-comply, pasensyahahan na lamang po tayo,” he added.

The PUV modernization program aims to phase out old jeepneys and replace them with Euro 4 compliant vehicles that can run on renewable energy. Each unit's cost ranges from P1 million to P2.2 million.

Under the program, P80,000 of the total amount will be subsidized by the government.

According to De Leon, the DOTr is requiring operators with the same route of operation to have a consolidated franchise to do away with the culture of competition in the transport service.

“Sa pamamagitan nito, magiging swelduhan na ang ating mga driver. Kapag boundary system kasi ang ating mga driver, nagiging kumpetisyon sa kalsada dahil sa pagkuha ng mga pasahero,” he said.

With the PUV modernization program, De Leon hopes the transportation system in the country would be a lot easier.

Last week, transport groups staged a nationwide strike against the PUV modernization program.

Pinagkaisang Samahan ng mga Tsuper at Operator Nationwide (PISTON) president Mody Floranda said drivers and operators will not be able to comply with DOTr’s directives to handle financial risks and be part of a corporation or cooperative.

“Hindi kakayanin ng mga indibidwal na operator ‘yung halaga ng mga nilalako nilang sasakyan," Floranda said.

When asked about the costly PUV unit, De Leon said, “Hindi naman po pwedeng maantala ang ating PUV modernization because of one specific area of concern.”

De Leon noted that operators can have discount when they belong to a cooperative. —Joviland Rita/LBG, GMA News