At least P221 billion needed to replace old jeepneys, says solon

Operators and drivers would need between P221 billion and P360 billion to replace all 250,000 units of traditional jeepneys with modern ones under the Public Utility Vehicle (PUV) Modernization Program, 1-Rider party-list lawmaker Bonifacio Bosita said Wednesday. 

Bosita said his estimate is based on the Land Transportation Franchising Regulatory Board's (LTFRB) data that there are 250,000 traditional jeepneys in the country. Government subsidy for each modern unit is pegged at 10 percent of each jeepney cost, which is between P985,000 and P2.8 billion.

The lawmaker said several idle units of the modern jeepney have been spotted in Taguig, Paranaque and Rizal — a manifestation of the hardship operators and drivers face in paying for the expensive vehicle.

"Napakalaking amount po nito. Hindi po ito kayang bayaran ng mga operator at driver. Wala na pong makuhang driver ang mga ito (idle units)," Bosita said during the House transportation panel inquiry on the government's PUV modernization program.

He said even the expected amount of government subsidy for the 250,000 modern PUV units, valued at P24 to P70 billion, is way smaller based on what is provided under the national budget.

Bosita cited that the government subsidy for PUV modernization reached P1 billion in 2022, zero for 2023, and P1.3 billion for 2024.

"Taumbayan po ang magbabayad nito at kokolektahan ng mga driver [ng pamasahe]," he added.

Bosita also lamented that based on his research, state-run banks and private banks have only been able to grant loans to a very limited number of beneficiaries or transport service entities or cooperatives at 342.

Of the 342 entity beneficiaries, 168 got loans from Landbank of the Philippines (LBP), 108 Development Bank of the Philippines, and 66 from private banks.

Bosita's figures on beneficiaries were confirmed by representatives of state-run banks during the inquiry, including LBP executive officer Ronaldo Averion.—LDF, GMA Integrated News