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Business

More transport coops accredited for PUV modernization plan

Richmond Mercurio - The Philippine Star

MANILA, Philippines — The Department of Transportation, through the Board of the Office of Transportation Cooperatives (OTC), has approved the accreditation of 36 new transport cooperatives to further strengthen the country’s shift towards the utilization of modern public utility vehicles (PUV).

According to the DOTr, the latest batch of accreditations brings the total number of accredited transport cooperatives to 681.

Under the government’s PUV modernization program (PUVMP), transport groups are required to form corporations or cooperatives to qualify in the program.

“The increasing number of transport cooperatives qualified to participate in the implementation of the PUVMP is testament that the PUVMP is very much alive. People must know that the PUVMP not only aims to uplift the lives of commuters, but also of PUV drivers and operators. We want these transport cooperatives to become highly competitive business organizations with stable livelihoods,” Transportation Secretary Arthur Tugade said.

Tugade, in a meeting with road sector officials on Thursday, instructed the OTC to fast-track approvals of transport groups intending to modernize their fleet and consolidate into cooperatives.

In response, the OTC committed to conduct bi-monthly meetings to expedite the approval of increasing applications for accreditation. 

“We recognize the important role of cooperatives in the success of the PUVMP. We will work on this, and we will waste no time,” OTC OIC chairman Medel Afalla said.

Under the PUVMP, the government aims to replace all PUVs aged 15 years or older with modern PUVs that are powered by either brand-new Euro 4 compliant diesel engines or electric motors.

The program is part of efforts to provide a safer transport system for commuters, while mitigating the effects of climate change.

As of Dec. 3 last year, the DOTr said 116 routes have already been identified under the initial implementation of the program, with 654 units for 25 routes have been granted provisional authorities and certificates of public convenience.

A number of private banks have also expressed interest in providing support and financial packages for the modernization program, the DOTr said.

PUV MODERNIZATION PLAN

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