Julia Christine Botin

Public transport modernization ‘not viable’ in current state, Dizon says

Article (news)

Victoria Tulad

ABS-CBN News

MANILA— Department of Transportation (DOTr) Secretary Vince Dizon admitted that the Public Transport Modernization Program (PTMP), formerly the Public Utility Vehicle Modernization Program (PUVMP), is not viable under its current state.Dizon was asked about the PTMP during the meeting of the Commission on Appointments (CA), which considered his ad interim appointment.“Given the present state of the modernization and kung itutuloy-tuloy lang po, tingin ko po yung fact na hindi na nakakabayad ng utang ang karamihan sa mga bumili ng bagong mga sasakyan, eh that is a clear sign that it is not viable in its present state,” Dizon said.“We have to acknowledge na maraming problema yung programa. Napakarami po talaga. If I go through all the problems we will last the whole day. And kailangan pong iisa-isahin i-address yung mga problemang yun,” he added.According to Senator Grace Poe, the government, through Landbank and the Development Bank of the Philippines (DBP), have released loans amounting to P15 billion with one third or more than P5 billion not repaid.<div><iframe width="640" height="360" src="https://www.youtube.com/embed/zWzrtFUTtAo?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe> </div>Dizon said the banks have suspended giving loans for the modernization. A modern jeep costs P2.5 million to P2.8 million per unit, said Dizon. With about 15 percent subsidy from government, jeepney owners, cooperatives will have to shell out P2.3 million.As for the consolidation rate, Dizon said it is only at 40 percent, while the route rationalization is at 20 percent.“Ang nakakalungkot lamang, sa tinagal-tagal ng panahon na pinaghi-hearing natin ito, pinag-uusapan eh kayo lang ang talagang nagbigay ng makatotohanan na mga numero and for that we would like to thank you,” Poe told Dizon.CA Majority Floor Leader Rep. Luis Raymund “Lray” Villafuerte, Jr. pointed out that allowing other companies to supply units can bring down the cost. Dizon acknowledged this.“Isa po sa mga problema ay, tama po si Majority Leader, na limitado po ang options ng ating mga transport cooperatives at ang mga operator natin. Kailangan po ito lang mga accredited ang bibilhan nila at ang pag-uutangan lang po nila ay limitado din po sa dalawang government financial institutions, ang Landbank at ang DBP,” Dizon said.<div>PTMP STAYS</div>In an ambush interview, Dizon clarified that the PTMP will continue.“Tuloy pa rin we will just help those that have already consolidated to make it viable,” Dizon said. “We’re not walking back the program.”“We will support those that have already consolidated but those that were not able to enter, we have to allow them to still earn a living,” he added.The DOTr will also talk to banks so that loans will be allowed again.“We have to talk to the banks and then we also have to provide them support. And then a lot of their vehicles are not working anymore so they need support to buy new vehicles,” Dizon stated. “We will restructure and we will provide them the means to be able to repay in the long term.”

Transport Secretary Vince Dizon said the program has a lot of problems, with many operators unable to repay loans for modern jeepneys.

Transport Secretary Vince Dizon said the program has a lot of problems, with many operators unable to repay loans for modern jeepneys.