Despite firm commitments to continue the Public Transport Vehicle Modernization Program (PTMP), the Department of Transportation (DOTr) acknowledged major setbacks including high loan defaults and unaffordable unit costs—that cast doubt on the program’s current viability.
Transportation Secretary Vince Dizon admitted that the PUV modernization initiative is "not viable" and facing serious implementation challenges.
“To be quite honest, if given the present state of the modernization, kung itutuloy-tuloy lang po. Tingin ko po yung fact na hindi na nakakabayad ng utang ang karamihan sa mga bumili ng bagong mga sasakyan that is a clear sign that it is not viable. In its present state,” Dizon said in the Commission on Appointments on Tuesday, June 3.
Vice chairperson of the Senate Public Services Committee Senator Grace Poe, echoed growing concerns over the program, noting that a significant number of drivers are reportedly struggling to repay the loans they secured to purchase modern jeepneys.
“15.3 billion ang released loan ng gobyerno from Landbank and DBP. ⅓ of that 5.1 billion defaulted amount. So papaano itong modernization program moving forward,” Poe disclosed.
She also noted that several banks are becoming reluctant to lend further, tightening the financial lifeline needed for modernization.
Despite these issues, the DOTr reassured the public that the program will proceed.
However, Secretary Dizon emphasized the urgent need to intensify support mechanisms for transport cooperatives already enrolled in the program—especially those struggling to meet monthly loan payments for their modern jeepney units.
"We have to acknowledge na maraming problema 'yung programa. Kailangan pong iisa-isahin i-address ang mga problemang iyon," Dizon acknowledged.
“Kailangan pong iisa-isahin i-address ang mga problemang iyon. Ang pag-uutangan lang po nila ay limitado din po sa dalawang government financial institutions…Pero marami pa po ang kailangan ayusin sa programa,” he added.
Dizon added that President Ferdinand Marcos Jr. has issued a directive to assist cooperatives that have joined the modernization effort and to continue extending opportunities to operators and drivers who were unable to consolidate their franchises before the deadline.
In a statement on Tuesday, the DOTr said that the agency kept the application process open for operators and drivers who have yet to consolidate, allowing them to secure Provisional Authorities (PA) and resume their operations.
In response to financial strain, among the reported measures being considered by the DOTr is opening the market to various suppliers of modern jeepney units in an effort to liberalize supply.
This move is expected to make loan repayment more manageable, encouraging broader participation in the modernization drive.
“Bubuksan ng Department of Transportation (DOTr) sa iba’t ibang supplier ang mga i-aalok na modern jeepney unit sa iba’t ibang transport cooperative na nakapag-consolidate na sa ilalim ng PUV Modernization,” DOTr wrote in a statement.
