The Department of Transportation (DOTr) has launched the Public Utility Vehicle (PUV) Modernization Program, a comprehensive, long-term project designed to make PUVs safer and more environment-friendly.
The program will introduce the Omnibus Franchising Guidelines (OFG), new rules for the operation of public transportation franchises, according to Transportation Secretary Arthur Tugade during the program launch on June 19.
Under the program, existing franchises will continue to operate for the next two to three years upon issuance of the OFG.
Local government units will be required to develop a local transport plan, which includes measures on traffic management, and a transport route plan that will identify public transport services required on certain routes based on passenger demand and the local road network.
With the PUV Modernization Program, DOTr said commuters are ensured easier access to public transport due to expanded and rationalized public transport network and services.
PUVs, DOTr said, will be equipped with Global Navigation Satellite System and speed limiters.
The PUV program is also eyeing industry consolidation, with drivers having the security afforded by monthly salaries and benefits, and enjoy reduced working hours.
Training and capacity building programs to strengthen the knowledge and skills of drivers will be offered.
Operators under a consolidated arrangement will see reduced maintenance and operational costs through sharing of services such as those on cleaning, repairs, maintenance, and management.
A special loan program will be offered to provide operators low equity, low interest rates, and longer payment periods.
The DOTr is coordinating with the Department of Finance, Department of Trade and Industry, and other financial institutions in designing programs that will give manufacturers and operators better access to credit. Small operators can consolidate to pool resources, meet minimum credit requirements, and share the cost of operations and maintenance.
