Franchising guidelines on jeep modernization program out this month

MANILA, Philippines -  The Department of Transportation (DOTr) will sign within the month the Omnibus Franchising Guidelines which will serve as the framework for the modernization of jeepneys.

DOTr Secretary Arthur Tugade said during the 3rd National Congress for the Transport Cooperative Sector the Omnibus Franchising Guidelines will be signed by June 19. 

The modernization program seeks to phase out old and dilapidated jeepneys.

The government is pushing for the modernization of the country’s jeepneys in order to ensure the safety of public transportation. 

It is of the view removal of old and dilapidated vehicles from the streets will help prevent accidents. 

Earlier, the DOTr, Land Transportation Franchising and Regulatory Board (LTFRB), Department of Finance (DOF) and Land Bank of the Philippines signed a memorandum of understanding (MOU) for a financing program for jeepney modernization. 

The MOU was signed by Tugade, LTFRB chairman Martin Delgra, DOF Secretary Carlos Dominguez III and Landbank president Alex Buenaventura. 

Through the financing program, a loan facility will be set up to provide credit to individual drivers and operators to replace old jeepney units in line with the government’s Public Utility Vehicle Modernization Program.

With an initial budget of P1 billion, the financing program will be used for individual loans to be given to 650 public utility jeepney operators or drivers in Metro Manila. 

The loan will enable operators or drivers to avail of a jeepney with a minimum requirement of Euro-4 engine or better.

There are over 220,000 registered public utility jeepneys nationwide. 

Of the total, bulk or 90 percent are 15 years old and above.