₱2.

6 million
From around ₱1.2 million in 2018, a modern jeepney now costs at least ₱2.6
million, he noted. Jeepney drivers and operators only have a few days left
until the consolidation requirement under the public utility vehicle (PUV)
modernization program ends by January 2024.
This range is higher by as much as 130% than the current minimum fare of ₱13 for
traditional jeepneys.

While the government provides a subsidy of ₱200,000, Valbeuna said this is still not
enough to cover the expenses they will have when they modernize. From around ₱1.2
million in 2018, a modern jeepney now costs at least ₱2.6 million, he noted.

Jeepney drivers and operators only have a few days left until the consolidation
requirement under the public utility vehicle (PUV) modernization program ends by
January 2024.

The Public Utility Vehicle Modernization Program (PUVMP) is a program launched by

the Department of Transportation of the Philippines in 2017, with the goal of making the country's
public transportation system efficient and environmentally friendly by 2020. The program calls for the
phasing-out of jeepneys, buses and other Public Utility Vehicles (PUVs) that are at least 15 years old
and replacing them with safer, more comfortable and more environmentally-friendly alternatives over
the next three years. Currently, there are 220,000 jeepney units operating throughout the country. [2]

Replacement vehicles are required to have at least a Euro 4-compliant engine or an electric engine
to lessen pollution. Some proposed requirements include CCTV cameras, an automated fare
collection system, speed limiters and GPS monitors.[3]

The Land Bank of the Philippines estimates that each jeepney replacement will cost around ₱1.4
million to ₱1.6 million.[4] However, based on an interest rate of 6% per annum and a payment period
of 7 years, the actual cost of a jeepney reaches ₱2.1 million.[5]

While reception among the general populace have been positive,[6] some transport groups have
criticized the program as it might lead to losses of jobs and businesses.[7][8

The program aims to change the current franchising system, revise and introduce new routes and
provide education to jeepney drivers.

The program, according to the DOTr, has the following goals:

 Safe and comfy transport

 Reliable travel time
 Disciplined and competent drivers
 Fair regulations
 Spacious jeepneys
Moreover, the government believes that the program's environmental and economic benefits would
be felt by commuters, operators, and drivers alike: commuters will profit from the changes in routes
and optimized networks. Because of the reduced traffic congestion and pollution, drivers will have
higher monthly pay and benefits, as well as better health. Finally, with less traffic, operators will be
able to take more passengers and save money under the franchising plan by pooling services. [9]

Implementation[edit]
A prototype of a Class II Modernized Jeepney from Isuzu Motors coachbuilt by Almazora
[Link] Isuzu QKR77 Class II Jeepney prototype by CentroA Tata 407 Modernized Jeepney
The Omnibus Franchising Guidelines (OFG) were signed by Transportation Secretary Arthur
Tugade in June 2017, and they altered the process of issuing jeepney franchises by implementing
new route planning criteria and establishing new vehicle and driver standards. [10]

Under the OFG, Local Government Units are required to come up with their own Local Public
Transport Route Plans.[11]

These plans will be based on existing and projected travel patterns and will be considered by
the Land Transportation Franchising and Regulatory Board in issuing new franchises. Single-unit
operators will no longer be granted franchises.[12]

Crackdown on dilapidated vehicles[edit]

In January 2018, Metro Manila's Inter-Agency Council on Traffic (i-ACT) launched operation
'Tanggal Bulok, Tanggal Usok', targeting vehicles for environmental and safety violations such as
smoke belching, worn out tires and lack of seat belts. As of January 23, a total of 1087 vehicles,
mostly Public Utility Jeepneys (PUJs), were flagged down, apprehended and issued summons. To
accommodate affected passengers, the Armed Forces of the Philippines have been offering free
rides.[13]

Prototypes[edit]
In October 2017, the Land Transportation Franchising and Regulatory Board (LTFRB) and the
Department of Trade and Industry (DTI) presented sixteen prototype jeepneys. These models were
all locally manufactured and based on guidelines set by the DOTr. Features include:

 Euro 4 engines
 CCTV Cameras
 GPS
 Automated fare collection systems
 Front-facing seats
 New exits on the right-hand side[14]
Financing[edit]
An estimated ₱1.5 billion will be given to transport corporations and cooperatives to purchase new
PUVs through the Development Bank of the Philippines' Program assistance to Support Alternative
Driving Approaches (PASADA). The program will feature a 5-percent equity for vehicle purchase, 6-
percent interest rate and seven-year repayment period.[15][16]

Under PASADA, a maximum of 95 percent of the cost of the vehicle, and a maximum of 75 percent
of the cost of the support facilities comprise the total loan per borrower. The government will also
offer a maximum subsidy of ₱80,000 to cover the equity payment.[17][18]
A Memorandum of Understanding (MOU) with the Land Bank of the Philippines was also signed by
the DOTr to set up a ₱1 billion financing for PUJs via the Special Environment-Friendly and
Efficiently Driven (SPEED) Jeepney Program.[19]

Phases[edit]
According to the DOTr, the proposed implementation time frame is as follows: [9]

 Q4 2017 Pilot program in Metro Manila

 2018–2019 Metro Manila, Metro Cebu, Metro Davao
 2019–2020 Highly Urbanized Cities, Rest of the Country
Franchise consolidation[edit]
The December 31, 2023 deadline for the consolidation of PUV drivers and operators was not
extended by President Bongbong Marcos, which led to another transport strike by transport group
Piston on December 14-15, with their continued call to scrap the December 31 deadline and the
complete removal of the mandatory franchise consolidation and the PUV Modernization Program. [20]

Support[edit]
At least twenty government agencies and twenty-four transport groups from across the country
supported the launch of the program.[21] Among transport groups that supported the initiative are the
Panta Transportation Network, Federation of Jeepney Operators and Drivers Association
(FEJODAP), 1-United Transport Koalisyon (1-UTAK), Alliance of Transport Operators and Drivers
Association of the Philippines (ALTODAP), and Coalition of Operators, Drivers, Employees, Atbp.
(CODE-X), and the Philippine Confederation of Drivers and Operators – Alliance of Concerned
Transport Organizations (PCDO-ACTO).[22][23][24] Pangkalahatang Sanggunian Manila & Suburbs
Drivers Association (PASANG-MASDA) also expressed support. Their president Obet Martin stated,
"it was high time for the country to replace the current jeepneys to more modern and more efficient
units".[25]

A 2019 study also showed that majority of commuters prefer to ride an e-jeepney than a
conventional jeepney in areas where it is available, as it provides a safer, environment-friendly, and
more comfortable ride.[6]

Criticism[edit]
Even before its launch, the program was received negatively by various transport groups. While
Senate Bill 1284 and House Bill 4334, the program's enabling legislation, were still pending in
February 2017, some jeepney drivers launched numerous strikes and demonstrations in Metro
Manila and in key cities throughout the country.[26]

According to Kilusang Mayo Uno (KMU) and Pinagkaisang Samahan ng Tsuper and Opereytor
Nationwide (PISTON), the ₱1.4 million to ₱1.6 million cost of new jeepneys will adversely affect the
livelihood of 600,000 public utility jeepney (PUJ) drivers and 300,000 small operators. [27] For drivers,
operators, and other transport stakeholders, the modernization may result in possible losses of jobs
and businesses.[28] The group claims that commuters will also be hit with an increased fare of at least
₱20.[27]

Cooperative Development Authority has noted that jeepney driver-operator groups have not been
included in technical working groups for the jeepney modernization program.[29] Vice President Leni
Robredo said jeepney drivers and operators, as well as the riding public, should be allowed to take
part in public consultations regarding the program.[29]
Senator Grace Poe, chair of the Senate public services committee, has expressed doubt over the
governments readiness to implement the program nationwide. According to Poe, the government will
have to shell out ₱415 billion for full implementation of the scheme, far more than the ₱2.26 billion it
approved. She has suggested that the PUV Modernization Program be implemented in select cities
instead.[30]

Senator Poe and Senate Majority Leader Vicente “Tito” Sotto III have called for a "middle ground"
solution, saying that old but road worthy PUVs should be allowed to operate. However, the DOTr
has given no clear commitment to their suggestion.[31] Senator Franklin Drilon criticized the program's
mismanagement and "hodge-podge planning".[32]

In the House of Representatives, Representative Sarah Elago noted how the program displaces
single franchise owners, owing to provisions in the law requiring franchises to own a minimum of 20
units, amounting to P7 million of capital.[33] Another youth group, Student Christian Movement of the
Philippines (SCMP), slammed President Duterte on Independence Day 2021 as a "puppet"
enforcing neoliberal policies such as jeepney phaseout.[34]

In a 2023 petition filed before the Philippine Supreme Court, transport groups argued that the
modernization plan violated the right of jeepney drivers to gainful employment and livelihood and
would result in worsening social inequality in the country.[35]

Protests[edit]
See also: 2017–2019 transport strikes in the Philippines and 2023 transport strikes in the Philippines

The transport group Stop and Go Coalition held a strike on September 24, 2017. [36] On October 16
and 17, PISTON held a two-day transportation strike.[37] In a press statement, Alliance of Concerned
Transport Organizations President Efren de Luna stated that their group did not join the transport
strike as they found that PUV modernization wants to ensure the security of passengers and to have
an environmentally sustainable mode of transportation.[24]

Manibela held a 3-day strike in November 2023 to protest the PUV Modernization Program.
Members of Pasang Masda and FEJODAP joined the strike according to Manibela. [38]