Unkept promises fuel PUV modernization opposition –Poe

Senator Grace Poe criticized the past leadership of the Department of Transportation for its “unfulfilled commitments” regarding the Public Utility Vehicle Modernization Program, as transport groups launched a strike protesting its implementation.

“Past leadership of the Department of Transportation has repeatedly made eight years of unfulfilled commitments to all stakeholders involved -- from the drivers to the operators to the commuting public -- which significantly contributed to the pushback against the Public Transport Modernization Program,” Poe said in a Monday statement.

She pointed out several persisting issues in the program:

• Lack of a comprehensive route plan
• High cost of modern jeepney units
• Use of foreign designs for the vehicles
• Insufficient subsidies for drivers

As vice-chairperson of the Senate Public Services Committee, Poe also flagged the low utilization rate of government funds for the modernization program.

She noted the low utilization of funds for the program at 53% despite the P7.5 billion allocation from the government from 2018 to 2024.

For 2025, the government has set aside P1.6 billion, which Poe stressed must be fully utilized to address key concerns, including the P147 million project management fees.

“Genuine modernization cannot be achieved through rushed implementation. It demands careful planning, inclusive consultations, and a commitment to ensuring that no driver or commuter is left behind. Now is the time for the DOTr to deliver for all stakeholders,” she said.

Despite these challenges, Poe expressed confidence in DOTr Secretary Vince Dizon’s leadership.

“You cannot please everyone. However, if anyone can untangle the complexities of this modernization program, that would be Sec. Vince,” she added.

Perfected financing

Meanwhile, Senate President Francis Escudero maintained that the government should not mandate modernization until it fixes the financing aspect of the program.

“Hangga’t hindi pa napeperpekto, naisasaayos ng pamahalaan yung sistema lalo na yung aspeto ng financing, kaugnay sa PUJ, PUV modernization, hindi ito dapat i- require muna sa lahat, dahil hindi nila kakayanin yung tapas at laki ng presyo ng modernong jeep kahit na malinis pa ‘yan sa oras na ito,” Escudero said. 

(Unless the system, especially the financing, is perfected, it should not be required for everyone. Drivers and operators simply cannot afford the cost of modern jeepneys, even if they are cleaner.)

He added that the government’s annual budget for modernization is insufficient, citing that the total allocation so far is P14 billion, while at least P42 billion is needed to subsidize 400,000 public utility vehicle operators and drivers.

"So, malayo pa tayo doon sa perang kailangan para talaga matustusan yung subsidy na kinakailangan para sa kasalukuyang namamasadang jeep," Escudero said.

(We are far from the amount needed to sustain the subsidies for jeepney drivers and operators.)

To address this funding gap, Escudero suggested tapping idle funds in LandBank and the Development Bank of the Philippines and offering affordable loan rates to operators and drivers.

Malacañang had said the PUVMP must be a win-win solution for both jeepney operators and commuters.

Meanwhile, transport group MANIBELA launched a three-day transport strike from March 24 to 26, 2025, alleging that the Land Transportation Franchising and Regulatory Board (LTFRB) misrepresented the number of PUV operators who have complied with the consolidation requirement.

Launched in 2017, the Public Transport Modernization Program (PTMP)—formerly the PUV Modernization Program (PUVMP)—seeks to phase out old jeepneys and replace them with Euro 4-compliant vehicles to reduce pollution. It also mandates the consolidation of individual franchises into cooperatives or corporations.

However, a modern jeepney costs over P2 million, a price even state-run banks LandBank and DBP have deemed too expensive for most drivers and operators. — DVM, GMA Integrated News