MANILA, Philippines — The Department of Transportation is now being pressured to revisit the implementation of the public utility modernization program after some transport cooperatives failed to pay off their debts to the Development Bank of the Philippines.
“Transport coops falling behind in payment of their loans is a glaring symptom that we hope the Department of Transportation will consider in giving this program a second look,” Senator Grace Poe said Wednesday.
During a Senate hearing Tuesday, DBP President and Chief Executive President Michael De Jesus said that it has stopped lending to transport cooperatives that have consolidated for failing to pay their loans to the bank.
“Even though it’s purely developmental if we’re not going to be paid, we don’t lend. For example, one of our mandates is the public vehicle modernization,” De Jesus said.
According to the DBP executive, cooperatives’ past dues have gone up to 25 percent, prompting the bank to hold lending to some of PUV cooperatives.
“Although it is our mandate, it won’t be sustainable if we keep lending,” De Jesus said.
Poe said that the DBP is pushing for more equity and a solid route plan to guarantee the venture’s profitability.
“No less than the DBP acknowledged that several transport cooperatives who have consolidated to join the program have not been able to pay their loans for the modern vehicles they have purchased,” she said.
“The jeepney units are too costly, the route plans are not yet final, and the consolidation requirement has eased out hundreds of drivers and operators,” she said.
Twenty-two senators have filed a resolution urging to suspend the implementation of the PUV modernization citing “valid and urgent concerns” but mostly about the readiness of the program implementation. But Marcos reaffirmed his commitment to implement the program despite calls from senators.
Under Senate Resolution 1096, a total of 36,217 jeepneys, or 19 percent of the PUVs and other vehicles have not joined a consolidation as of the April 30, deadline.
The DOTr data showed that as of May, roughly 81.11 percent of PUVT units — 155,513 out of 191,730–have been consolidated.
According to Marcos, how can the 20 percent of the unconsolidated jeepneys decide the fate of those who consolidated, adding that the program was not rushed.
“The modernization has been postponed seven times. Those who have been objecting or asking for suspension are in the minority,” he said.
