OPERATORS of old jeepneys, particularly whose engines are 15 years old or older, have only until March 31 next year to continue operating and after which, their units will be banned on roads and highways.

The deadline was set for the implementation of the phasing out of the old jeepneys under the government’s Public Utility Vehicle Modernization Program (PUVMP) to ensure public safety and provide better service to commuters.

This was stressed by Atty, Anabel Marzan-Nullar, chief of the transportation regulations division of the Land Transportation Franchising and Regulatory Board (LTFRB) 1, during her talk before the Sangguniang Panlalawigan (SP) on November 8.

Nullar said under the (PUVMP), operators of old traditional jeepneys are asked to consolidate their resources to enable them to buy and own brand new modernized jeepneys before the deadline.

She said the original deadline for the phaseout under DOTr Order 2017-11 was December 31, 2022 but this was extended because of the pandemic.

The DOTr coverage of the deadline and phaseout will include old mini-buses and public utility vans operating since 1980s and earlier. Their franchises will not be renewed by the Land Transportation Franchising and Regulatory Board (LTFRB) beginning April 1, 2023 and the Land Transportation Office (LTO) will reject their registration.

To assist the operators of the phased-out units, their cooperatives can avail of a loan from the Land Bank of the Philippines, for them to buy customized jeepneys for the PUVMP in addition to the P360,000 offered by the government to the consolidated operators as equity for their loan.

A 5-6-7 rule applies for the loan: Five percent equity; Six percent interest per annum will be charged by Land Bank, and seven-year, period for amortization, Nullar said.

There features of the PUVMP are:  Two classes of modernized jeepneys: Class 1 (passengers are  seated face-to-face)  and Class II, (passengers are facing front);  a minimum of 15 modernized jeepneys per route depending on passenger demand, activity and the number of establishments in the route covered.

On the clarification sought by Fourth District Board Member Jerry Agerico Rosario how the 15 minimum units per route policy will affect those excluded, Nullar said the qualified operators will be diverted to service unserved routes.

She informed the SP that the loan applications of a number of transport cooperatives with Land Bank in Pangasinan but their applications remain pending because of the delayed submission of the Local Public Transport Plan of the province.

Nullar said among the components of the PUVMP is a scrapping program and support for affected operators, i.e., providing three to four times fuel subsidy, providing TESDA scholarships to sons and daughters of operators. (Leonardo Micua)

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