Philippine iconic jeepneys, which have become popular abroad (though some locals view this traditional mass transport as infamous not because of the units themselves but more because of disorderly and abusive road behavior of the drivers) would soon be out of the country’s roads, if the government forces its way.
To be sure, ramming modern jeepneys down their throats would lead to disaster.
The original December 31 deadline for drivers/operators to consolidate into transport cooperatives so they can avail of P2 million loans from state banks– Development Bank of the Philippines and Land Bank– to buy a “modern” jeepney has been met with passionate opposition because understandably, how could drivers pay for the amortization given the current fares they collect from commuters.
If the government insists on doing so, drivers would need to earn P7,000 a day just so they could properly amortize their loans.
How could they earn this much with minimum fares at P13 when the “modernized" jeeps that have been plying the roads charge at least P20 or P25 depending on the distance?
Already, P2 billion worth of loans extended by both GFIs to the consolidated transport cooperatives have not been paid, prompting a proposal from Representative Joel Chua (3rd district, Manila) to newly-installed Finance Secretary Ralph Recto to restructure these past due loans of “consolidated” PUJ cooperatives.
“I ask DoF Secretary Recto to exercise his oversight and supervisory powers over DBP and LBP so remedies will be applied to the situation of 38 transport cooperatives and corporations who defaulted on their PUV Modernization Program loans,” he said in a press statement.
In testimony before the House hearing on PUV Modernization, officers of DBP said 33 borrowers defaulted on their loans worth a total of P1.8 billion.
Landbank said in the same hearing that five borrowers were past due on their loans worth P274 million as of last December 31.
“Perhaps the DoF can guide DBP and LandBank on how the past due P23 billion loans can be restructured and address the underlying causes of why the 38 borrowers defaulted in the first place,” Chua added.
By applying proper and quick remedies, the affected consolidated PUJ drivers and operators can return to plying their e-jeepney routes at the soonest possible time.
Meantime, unconsolidated traditional transport operators have been waging nationwide protests aside from filing for temporary restraining order with the Supreme Court against the PUV Modernization Program.
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