Department of Transportation encouraged to work with Landbank and DBP in PUV acquisition
Mike Manalaysay May 4, 2024 at 04:19 PM
Senator Risa Hontiveros called on the Department of Transportation (DOTr) to collaborate with the Land Bank of the Philippines and the Development Bank of the Philippines (DBP) in acquiring modern PUVs. These vehicles would then be leased to consolidated transport cooperatives to address the transport shortage caused by the PUV Modernization Program.
“This drastic problem requires a drastic solution. Kailangang hingan na ng tulong ng DOTr ang Landbank at DBP, kasama ang mga asset management entities nila, para pwedeng gawing lease contracts na lang muna ang mga amortization contracts para sa mga transport cooperatives na hanggang ngayon, ‘di alam kung kakayanin ba ang modernization program,” Hontiveros explained.
She stated the DOTr should utilize its subsidy budgets for 2024 and 2025 to procure modern PUVs for leasing to cooperatives. These cooperatives, she added, could opt for a lease-to-own agreement with the government once the assigned routes demonstrate profitability.
Transport cooperatives are hesitant to invest in larger yet more costly modern jeeps due to the lack of clear route plans, making them uncertain about their financial viability. Similarly, banks are reluctant to extend loans to them under these circumstances, as per her observations.
“Since the DoTr and Malacañang have forced drivers and operators off their routes and off the roads by saying that only those that have joined coops and corporations can continue to ply their old routes there won’t be enough vehicles on the roads.” Hontiveros said.
As part of her suggested solution to address the transportation shortage, she proposes that the DOTr grant authorization to local governments to own and manage modern PUV fleets via service contracting agreements with transport cooperatives.
“Kung ganito ang gagawin, maiibsan ng DOTr ang pangamba ng maraming PUV drivers at operators, pati na yung mga napilitan lang na sumali sa transport coops dahil sa April 30 deadline, na lalo lang silang mababaon sa utang dahil mahal na nga ang isang unit ng modern PUV, pwede pa silang malugi dahil hindi nga sila binigyan ng katiyakan sa ruta at kita ng DoTr,” Hontiveros declared.
“The DOTr must take the wheel and ensure that the modernization program doesn’t run over the livelihoods of PUV drivers and operators. After all, it is the government that can initially take on the risk of making the investment in modern fleets because it is more knowledgeable about what lies ahead and seems much less afraid of the risks of the modernization program,” the senator asserted.
📷 Philippine News Agency