Press Release
May 2, 2024

Hontiveros to DOTr: Work with Landbank, DBP to buy modern PUVs

Senator Risa Hontiveros on Thursday urged the Department of Transportation (DOTr) to work with Land Bank of the Philippines and the Development Bank of the Philippines (DBP) to purchase modern PUVs to be leased to consolidated transport cooperatives to make up for the transport shortage the government has created due to 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 said.

She continued, "The DOTr should use its 2024 and 2025 subsidy budgets to purchase modern PUVs for leasing to cooperatives, that may later choose to enter into a lease-to-own arrangement with the government if the routes that will later be assigned to them will prove to be profitable."

According to her, without clear route plans, transport cooperatives are unsure whether they will be financially viable, making them averse to purchasing larger but more expensive modern jeeps, while banks are also unlikely to lend to them.

"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.

Part of her proposed remedy to this transport shortage is for the DOTr to authorize local governments to own and operate modern PUV fleets through 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 said.

She continued, "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."

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