The government is spending another P447 million next year to carry out the Public Utility Vehicle Modernization Program, a congressman said Tuesday.
“The fresh funding is on top of the P843 million allotted this year to support the program,” said House appropriations committee member and Surigao del Sur Rep. Johnny Pimentel.
“The government is likewise arranging to provide another P2.2 billion in low-cost financing to help PUV operators and drivers acquire the newly configured buses, vans, and jeepneys under the program,” Pimentel said.
Once available, the P2.2 billion will be coursed through two state-owned lenders – the Land Bank of the Philippines and the Development Bank of the Philippines – at P1.1 billion each, he said.
He said the P2.2 billion was lodged in the “unprogrammed appropriations” of the proposed P3.757-trillion national budget for 2019.
Unprogrammed appropriations “provide standby authority to incur additional agency obligations for priority programs or projects when revenue collection exceed targets, and when additional grants or foreign funds are generated,” according to the Budget Department.
“We have very high hopes that the modernization program, once completed, will offer the public an easier and safer way to commute in the years ahead, while enabling PUV operators and drivers to upgrade their vehicles. There’s also no question the program will help improve air quality because the new PUVs are meant to comply with lower emission standards,” said Pimentel, who is also a member of the House transportation committee.
He said the program would spur new jobs in the automotive sector.
Officially launched in June last year, the PUV Modernization Program is a priority project of the Transportation and Trade Departments.
Under the program, all PUVs more than 15 years old will be phased out and replaced with new models equipped with automated fare collection systems, digital security and dashboard cameras, Wi-Fi Internet connectivity, GPS tracking devices and speed limiters.
The new PUVs will run either on electric batteries with zero exhaust gas emissions or on Euro 4 compliant diesel engines that discharge 68-percent less particulate matter, 57-percent less nitrogen oxides and 50-percent less carbon monoxide.
The modernization program also reforms the franchising system to reinforce regulatory supervision of PUVs.