Here’s what’s in store for the Jeepney Modernization Program

by Cherryl Anne Cruz, Oct 3, 2017

Are you ready to say goodbye to the old jeepney?

Perhaps it won’t be for many drivers and operators today. But still, the Modernization Program is already set in motion. In fact, there’s already the unveiling of the new PUV prototypes this October 12, with as many as 14 modern jeepneys to be introduced to the public.

But this is just the tip of the iceberg. Here’s what you need to know about the Jeepney Modernization Program:

Is it modernization? Or really a phaseout?

According to drivers, the term “modernization” is really just “phaseout” in sheep’s clothing.

But according to Atty. Lizada: “The jeepney as a denomination stays. What the government is fixing right now is what kind of jeepney should be used on the road that is compliant with the Clean Air Act, and can give the usual convenience and safety for the riding public.

What happens to the old jeepneys?

The government will buy each of them for P30,000 (salvage fee) and will later be scrapped.

How many jeepneys will be released?

The government plans to release around 200,000 to 250,000 jeepneys.

What’s the government’s time line for this?

According to Raquel Santos, it will take around three years to release 200,000 units in the Philippines.

What kinds of jeepneys will be used?

There will be two types that will ply the road: Electric Jeeps, or the Euro-4 compliant ones.

How much will the jeepneys cost?

The electric jeepney and Euro-4 compliant jeepneys will cost around P1.2 to P1.6 million.

How much will the government spend for the entire program?

They will spend way more than P16 billion, to say the least.

In fact, the P16 billion alone will be used for the five-percent subsidy (but not more than P80,000) that the government will give to each driver.

How will the jeepney drivers pay for the jeepneys?

Once the government initially pays the five-percent subsidy, then the remaining amount will be paid by the jeepney driver within a seven-year loan term, at a 5- to 6-percent interest rate per year.

How much will the drivers pay?

Generally, they will need to pay Land Bank P800 a day for 7 years. This will be for a vehicle priced at P1.6 million. Note that drivers earn only around P600 per day, so they will need to add P200 more to their daily payments.

This is the main reason why drivers keep opposing the Modernization Program.

What will be some of the conditions set by the government for jeepney drivers?

Initially, the jeepney drivers are mandated to form a cooperative or association to be part of the program.

“They have to go together either a coop, association, corporation, and the coop will now own the franchise. Inside, they will professionalize dispatching of the units… and then you have a safety officer,” according to Atty. Lizada.

What’s more, salary for all jeepney drivers will be standardized to prevent unruly actions as a result of competing for passengers.

What are the jeepney’s features under the Modernization Program?

The jeepney’s designs will be significantly altered. Its boxy shape will be replaced with a longer body that looks similar to a van.

The standard doors will be on the side instead of the rear. It will also be equipped with power steering, hand brake, and–for some units–air conditioners. It will also have bigger passenger accommodation due to its longer frame.