Business
LandBank supports PUV modernization
by transpo coops How the movement
can also do its part
T
he Philippine Cooperative Center (PCC) hosted the Public
Utility Vehicle Modernization Forum, Part 2 last May 23
at the Manahan Hall of the PCC’s Agapito ‘Butz ‘Aquino
Building in Quezon City.
Attending the forum were over 30 representatives from
different transport coops throughout Metro Manila as well
as nearby provinces, while the pool of resource speakers
consisted of executives from LandBank of the Philippines
(LBP), AVP Leonardo ‘Dodo’ Aurellana and Ronaldo ‘Ony’
Averion, Program Officer; the Cooperative Development
Authority (CDA), in the person of Administrator Buddy
Abad Santos; and San Dionisio Cooperative, represented by PCC Chair Gary
Leonardo.
As the apex organization of cooperatives in the country, PCC serves as the
unifying force in advocacting the importance and presence of cooperative
movement in the country; among its advocacies is pushing for the role, and
recognition of transport cooperatives, most especially in the government’s PUV
modernization program.
Mr. Averion presented LBP’s SPEED PUVs: Support Package for Environment-
friendly and Efficiently-Driven—PUVs program, which is part of LBP’s support
of the Public Utility Modernization Program of the Duterte Administration. This
package envisions a restructured, modern, well-managed and environmentally
sustainable transport sector where drivers and operators have stable, efficient
and dignified livelihoods while commuters get to where they want to be quickly,
comfortably and safely.
This was accompanied by a slide presentation that expounded on its features
such as who the eligible borrowers are, specifically public transport cooperatives
and corporations with approved routes under the LTFRB Omnibus Franchising
Guidelines; eligible loan purposes, which detailed on the purchase of PUVs with
specifications; credit facility; amount of loan; loan tenor; interest rate; and pre-
processing requirements.
As for specifications, Averion stessed the following for qualified PUVs:
•Minimum capacity of 20 passengers, which can also be airconditioned
•Powered by either electric motor/Euro 4 or 5 compliant internal-combustion
engines/hybrid engines
•Entrance and exit located along the right side of the unit, with at least standard
headroom for commuters of average height in an upright position to ensure
commuter convenience while entering and alighting
•Equipped with Global Positioning Systems (GPS), Tap-in-Tap-Out (TITO) radio
frequency card reader for automated fare collection, LED-video systems for
informational campaign and advertising purposes, and Closed-Circuit Television
System (CCTV)
“Indeed, LBP is ready to provide help through loans for coops to acquire and
operate modern vehicles,” proudly stated Averion, adding that through PUVM,
mas matipid gumamit at mas maliit yung maintenance costs while contributing to
cleaner air.
LBP's Program
Officer Ony Averion
discussing the fine
points of SPEED
PUVS program
Credit: PCC
60
Some of the participants
at the PUV modernization
forum
Credit: PCC
Dating back to the FVR regime
It is an unknown secret that the concept of PUV modernization did not take
place recently. According to Abad Santos, plans for modernizing PUVs were
initiated during the administration of President Fidel V. Ramos (FVR) and was
supposed to take place during the succeeding administrations—but sadly, fell on
deaf ears. He added that it was only during the DU30 administration where PUVM
was implemented due to political will.
What Abad Santos strongly observed was the fierce disparity of support and
unfair treatment given by government agencies for transport cooperatives versus
that of corporations. “For every franchise, three are allocated for cooperatives,
and seven for corporations. Where are the cooperatives in those areas which the
corporations have dominated? Our role is to let our voices be heard,” he reasoned
out.
“PUV modernization is the biggest non-infrastructure program of the Duterte
administration; as most transpo associations have become cooperativized, why
are there still the endorsement of politicos?”
He also stressed the need for the Bureau of Internal revenue (BIR) to abolish the
certificate of tax exemption in the purchase of PUVs by cooperatives which, as of
presstime, is being levied at 12 percent on the purchase of vehicles; this levy was
imposed by then Commissioner Kim Henares under the previous administration.
“Before any cooperative decides on purchasing any unit, let them stick to one
that is sturdy, with cleaner engines that are Euro 4 or 5 compliant. As they register
with CDA, they then go to the Office of Transport Coops (OTC) for endorsement
and accreditation for which they will have to attend a CETOS (Cooperative
Education and Transport Orientation Seminar),” Abad Santos added.
Diversification for displaced drivers
“Dual membership revolves around cooperation among cooperatives, and this
is what SDCC
has been practicing for quite some time now. It is a Big Brother, Small
Brother scheme. Yet the government’s intent will not be successful if it supports
corporations,” warned Leonardo. “It makes a lot of difference if you partner with
the same family as yours—which are cooperatives.
He also emphasized how the Big Brother, Small Brother scheme could faciltitate
joint ventures where the big coops can help in equity build-up for the small coops,
as well as provide aid for displaced drivers to help them set up businesses allied
with transpo such as parts, maintenanance, charging stations (for electric motors)
and supply of petrol and lubricants.
“PUV modernization for land-based transpo can also be a starting base for
similar modernization initiatives for other means of transpo such as sea (ferries)
and air (air taxi services),” furthered Leonardo.
After the open forum, where the group was allowed to air their observations
and grievances it was finally decided that there will be an advocacy by the
movement for legislation that will call for:
•The abolishment of the 12 percent VAT that will be pressed by the movement
towards the 18th National Congress, and for it to be passed on to the dealers
instead;
•Preferential treatment for cooperatives, where the movement will come up
with a position paper in support of transport cooperatives; and
•For the government to consider a’ just and orderly transition’ for transport
cooperatives in modernizing their units.
Indeed, if the movement gets its acts together, those ‘cooperators’ are confident
that they can make a big difference where everybody benefits: the cooperatives,
with their operation of cleaner, more efficient, technologically sound vehicles; the
commuting public, who will enjoy safer and sound modes of transport; and the
environment, where we all can breathe and enjoy cleaner air. TIM eMagazine