DOTr open to PUV modernization compromise, but firm on franchise consolidation

First Published by CNN Philippines on Jan 25, 2024, 2:27:55 PM

Metro Manila (CNN Philippines, January 25) – The Department of Transportation (DOTr) is open to discussing transport groups’ demands on the Public Utility Vehicle Modernization Program (PUVMP), but said the government is firm on franchise consolidation.

Asked by reporters what compromises the government could make to appease those against the program, Transport Secretary Jaime Bautista on Thursday said transport groups would have to speak with the government to lay out their demands.

“Hindi nga namin alam ang gusto nila, ‘yung individual franchise [We don’t know what they want with the individual franchise], but it will be contrary to the concept of consolidation. Dito sa [with] consolidation, we will be very firm. We will require consolidation,” he added.

Following pressure from lawmakers and transport groups, President Ferdinand Marcos Jr. has extended the PUV consolidation deadline by three months until April 30, after it lapsed last on Dec. 31 last year.

READ: Marcos extends PUV franchise consolidation to April 30

Bautista reiterated the government is open to allowing individual operators to join existing cooperatives or corporations.

“But since the president extended it for three months, now we will allow them to form their own cooperatives or corporations. Palagay ko [I think] in three months they should be able to do that,” he explained.

For Land Transportation Franchising and Regulatory Board (LTFRB) Chairperson Teofilo Guadiz, even though the government has clear-cut requirements particularly with consolidation, it is open to finding common ground with the transport sector.

“I was in a meeting last night in Congress with (PISTON president) Mody Floranda and Manibela’s Mar Valbuena. They have agreed to visit my office and come up with a dialogue,” Guadiz said.

“Open-ended ‘yun, but when they agreed to come to the office, it means they are willing to sit down and discuss the matter with us,” he added.

Bautista told CNN Philippines’ The Source on Thursday that April 30 would be the final consolidation deadline extension. Afterwards, the government will continue with the next phase of PUVMP which is route rationalization.

Bautista said that nationwide consolidation currently stands at 76%.