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Political will drives PUV modernization
I
By Lorenz S. Marasigan
NVESTING at least P25 billion to modernize public utility vehicles (PUVs) in the Philippines—an initiative that experts say should have been done way back in the 1980s— may sound like a hefty price to pay for the decades of delays in launching the controversial program.
But despite the many qualms raised on the program, studies show that the benefits of having a better public transport sector will
far outweigh the costs. The Philippines is in the midst of a six-year PUV-modernization plan, which aims to replace old
jeepney units with low-emission and fuel-efficient vehicles to help reduce air pollution and provide better transportation means for commuters. It has been on the government’s drawing board for more than a decade now, but has only come into effect last year, when the Duterte administration took a stiffer stance on implementing the program despite oppositions from operators.
Back to the ’80s
For Jose Regin F. Regidor, a research fellow at the University of the Philippines-Diliman National Center for Transportation Studies, the program has long been delayed. The first round of upgrade, he said, should have been done more than three decades ago.
“Modernization should have been undertaken decades ago. Even back in the 1980s there were already viable options for the jeepney to be modernized, but the government skirted the issue for various reasons, including the threats of transport strikes,” he told the BusinessMirror. Despite playing catch-up with the demands of the modern time, the government is bent on hastening the full implementation of the program due to the worsening public transport conditions in the Philippines marked by dilapidated vehicles, crisscrossing routes and low to zero access. This political will stems from the fact that the transportation department’s belief that “most public-utility vehicles on the road
are not safe, not comfortable and produce significant amounts of air pollution.”
The replacements
Under the program, several agencies under the Department of Transportation, the Department of Trade and Industry and the Department of Finance are to work together to remove old and polluting units, replace them with vehicles with larger volume capacities, and improve the road-worthiness of public utility units. In a nutshell, the modernization agenda aims to effect a transition from current vehicles plying the road to “high-quality publictransit requisites.” The transportation department listed these items as follows: “higher capacity ve-
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ALREADY 3 DECADES DELAYED, JEEPNEY-MODERNIZATION PROGRAM FINALLY GETS TO FIRST GEAR
hicles, low-emission vehicles, fleet consolidation, reformed business model and an effective information-technology system.” Initial benefits of the program to commuters are easier access to public transport due to an expanded network that connects different routes and establishments, and the availability of “more reliable” public transportation means.
Health, environment losses
Part of the overall objective of the modernization program is to reduce the amount of carbon footprint that the Philippines produces annually, and help improve the driving methods and techniques of drivers. In a 2017 study conducted by Continued on A2
‘Golden Age of Infrastructure’ not possible sans PPP Act
R
ELYING on government funds and foreign assistance could never be enough to solve the perennial crisis in infrastructure in the Philippines.
Experts say without the necessary legislation to fund and force agencies to implement public-private partnership (PPP) deals, it will be close to impossible for the coun-
try to achieve the so-called Golden Age of Infrastructure. Urging the government to fast-track policies on infrastructure buildup with the help of the
PESO exchange rates n US 51.8600
private sector, former PPP Center Executive Director Andre C. Palacios said the key legislation that will help hasten the development of much-needed facilities in the Philippines should be passed sooner. The particular bill—still pending before both houses of Congress—is called the PPP Act, which, in a nutshell, amends the decadesold Build-Operate-Transfer (BOT) Law to make it more relevant to the
needs of the times. “The PPP Act is vital to our national infrastructure program. Our infrastructure need is so huge and so urgent, but the government has limited manpower and funds. We need government budget and experience to be augmented by private-sector financing, expertise and innovation,” Palacios told the BusinessMirror.
Hard climb
It is so important that he was con-
fident enough to say that without it being passed into law, the Duterte administration will find it hard to achieve its goal of reaching the Golden Age of Infrastructure in the Philippines. “Unless the PPP Act is passed, we will not achieve our Golden Age of Infrastructure and we cannot solve the present infrastructure crisis,” Palacios, now a professor at a state university, lamented. Policymakers, chiefs of gov-
ernment agencies and industry players have long been pushing for the passage of the said piece of legislation into law. The Aquino administration tried to put pressure on lawmakers to pass a consolidated bill during the 16th Congress, but failed due to the lack of time to consolidate bills and approve one in a joint session.
“The PPP Act will do three things: modernize the 28-year-old BOT Law; Continued on A2
n japan 0.47509 n UK 70.4155 n HK 6.6071 n CHINA 8.1669 n singapore 38.9778 n australia 39.0454 n EU 62.1801 n SAUDI arabia 13.8294
Source: BSP (May 4, 2018 )