Navigating Financial Challenges in PUV Modernization: The Debate over Modern Jeepney Costs

In a recent discussion about the Public Utility Vehicle (PUV) Modernization Program, questions arose concerning the financial viability of acquiring modern jeepneys. According to 1 Rider party-list Representative Bonifacio Bosita, acquiring a modern jeepney worth PHP 2.8 million would require transport cooperatives to generate as much as PHP 7,000 per day. This amount would cover loan repayments, maintenance, fuel, and other operational expenses, in addition to the drivers’ earnings.

However, Teofilo Guadiz III, the chairperson of the Land Transportation Franchising and Regulatory Board (LTFRB), pointed out that there are cheaper modern jeepney options available, costing around PHP 980,000 each. This significantly reduces the daily income needed to cover the associated costs.

The Landbank computes loans for these vehicles at a 6% annual interest, payable over seven years. Based on this, a cooperative would need to raise about PHP 40,000 monthly per unit, excluding other mandatory expenses. The LTFRB emphasized the need for accurate computations and realistic financial planning for the successful implementation of the modernization program.

This discussion highlights the complexities and financial considerations involved in transitioning to modern PUVs in the Philippines, balancing the need for upgrading public transport with the economic realities of operators and drivers.