Public Utility Vehicle Modernization Program
Public Utility Vehicle Modernization Program
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Public Utility Vehicle Modernization Program

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Public Utility Vehicle Modernization Program

The Public Transport Modernization Program (PTMP), formerly and still commonly referred to as the Public Utility Vehicle Modernization Program (PUVMP) or simply the PUV modernization program, is a program launched by the Department of Transportation (DOTr) in 2017 with the goal of making the Philippines' public transportation system more efficient and environmentally friendly by 2020. Although the program calls for the phaseout of jeepneys, buses, and other public utility vehicles (PUVs) that are at least 15 years old and their replacement with safer, more comfortable, and more environmentally friendly alternatives. At the time of the program's inception, around 220,000 jeepneys were operating throughout the country. The program also requires PUV drivers and operators to join or form transport cooperatives.

Replacement vehicles are required to use at least a Euro 4–compliant engine or an electric motor to reduce pollution. Proposed features include CCTV cameras, an automated fare collection system, speed limiters, and GPS monitoring systems.

The Land Bank of the Philippines estimated that each jeepney replacement unit would cost around ₱2.4 million to ₱2.6 million. However, Senator Grace Poe stated that, based on a 6% annual interest rate and a seven-year payment period, the actual cost of a replacement jeepney could reach ₱2.1 million.

While the program has generally received positive reception from the public, some transport groups have criticized it, arguing that it could result in job and business losses.

The program aims to change the current franchising system, revise and introduce new routes and provide education to jeepney drivers.

The program, according to the DOTr, has the following goals:

Moreover, the government believes that the program's environmental and economic benefits would be felt by commuters, operators, and drivers alike: commuters will profit from the changes in routes and optimized networks. Because of the reduced traffic congestion and pollution, drivers will have higher monthly pay and benefits, as well as better health. Finally, with less traffic, operators will be able to take more passengers and save money under the franchising plan by pooling services.

The Omnibus Franchising Guidelines (OFG) were signed by Transportation Secretary Arthur Tugade in June 2017, and they altered the process of issuing jeepney franchises by implementing new route planning criteria and establishing new vehicle and driver standards.

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