PUV MODERNIZATION CARAVAN. Around 500 stakeholders from the transport sector attend Tuesday’s briefing from the Department of Transportation and the government transport agencies under it. (PNA photo by Liza T. Agoot)
BAGUIO CITY-- Government transport and financing agencies on Wednesday briefed around 500 stakeholders in Baguio and Benguet on the government's Public Utility Vehicle Modernization Program (PUVMP) which aims to professionalize the country’s transport sector.
Lawyer Zona Tamayo, National Capital Region-Land Transportation Franchising and Regulatory Board regional director, said the modernization plan is not just about introducing new vehicles but also improving the transport system to assure that the riding public will have a ride when going home, any time of the day or night.
"You used to operate on your own and when the employees go home after work, they can no longer get a ride. In PUV modernization, the members talk and when they learn the system, they will start to operate 24-hours because they will know that there are still passengers in the wee hours. The fleet management system is learned in the process,” Tamayo said during a PUVMP briefing at the multi-purpose hall of city hall.
She said the PUVMP will also organize the transport operators to work as one.
Darwin Tan of the operation division of the Office of Transportation Cooperatives under the Department of Transportation (DOTr) said the PUVMP is also called industry consolidation as it will put together small operators and drivers to form a cooperative or corporation.
It is one way of professionalizing the system, Tan said.
He said in the formation of juridical entities, the members do not need to belong to one route but can merge to create a group that will comply with the 15 initial members as required under the cooperative code or five under the corporation code.
As a cooperative, as long as their constitution provides, they can engage in other economic enterprises like putting up a gasoline station, a transportation supply shop, batteries or auto supply.
Formation of a cooperative will also allow them to borrow a loan from the government’s financing institution and purchase a modern PUV- one that will meet the requirement of the modernization law, which will help the franchise owner in assuring that the PUV will earn an income that will allow it to pay for itself, Tan added.
As of June 2019, Tan said there are 906 transport cooperatives nationwide.
The Landbank of the Philippines and the Development Bank of the Philippines will be open to accommodate cooperatives that would require financing. Both banks will only charge a minimal 6 percent interest per annum.
Meanwhile, heads of the Asin Hot Spring Transport Association in Tuba, Benguet, and Itogon Transport Association, both traversing on mountainous terrain carrying loads of goods and ferrying passengers, suggested that they would be allowed to use their old maintained vehicles if safety is required under modernization.
The PUV modernization caravan has been going around the country to raise awareness on the government's PUVMP. (PNA)
