A House leader said jeepneys should not be abolished under the PUV Modernization Program.

House Committee on Ways and Means chairman Albay Representative Joey Sarte Salceda said the PUV Modernization Program should modernize the renowned Filipino vehicle, by preferring locally-made but fuel-efficient vehicles.

Salceda also called on the government to extend the deadline for consolidation for jeepneys manufactured in recent years and to support domestic manufacturers of cheaper, more modern jeeps.

“I would summarize my proposal in three points: First, support domestic manufacturing of more modern and more efficient, but similarly stylish jeepneys. Second, increase the subsidy per unit to meet the financial viability gap. Third, buy out old jeepneys for cash,” Salceda said.

Likewise, he asked the Department of Transportation to consider emissions “on a per capita basis,” since the more modern jeepneys “can accommodate fewer passengers than traditional jeepneys.”

According to Salceda, the traditional jeepney produces some 0.33 kg of CO2 emissions per passenger per year, while the modern jeepneys would still produce some 0.25 kg per passenger due to smaller capacity.

“It’s a 31 percent saving in per passenger emissions for a vehicle that costs as much as 620% more. We need a cheaper, domestically manufactured jeepney that modernizes the traditional one,” he said.

Salceda said the government should first ensure that the domestic jeepney manufacturing sector is an option for the PUV modernization program, and assist it in producing cheaper but similarly modern and efficient units.

“If we can bring the cost of the unit to P600,000 to P1 million, that becomes more realistic for both the jeepney operator, and on a cost-benefit basis. I think the domestic manufacturing sector can do it. But we need to support them,” he said.

“By that figure, you bring ROI to around 7.4 years. Otherwise, with these supposedly modern but still very expensive jeepneys, you run into the same problem,” the solon added.

Salceda projects that, without subsidies, operators will need as much as 22 years to recoup the value of their investments in new jeepneys.

“It’s not that jeepney operators don’t want to modernize. It’s just that, financially, it’s suicide. It makes no sense.”

AUTHOR PROFILE

Jester P. Manalastas