1 month ago
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The Automotive Body Manufacturers Association of the Philippines (ABMAP) is urging the government to prioritize the Public Utility Vehicle Modernization Program (PUVMP), underscoring the need for additional funding.
In a statement, ABMAP said securing more funding for the program would not only modernize the “country’s dilapidated, polluting, and unsafe jeepneys,” but also revitalize the local automotive industry.
The group issued this statement after they received reports that the Development Bank of the Philippines (DBP) and Landbank have exhausted their lending funds for the program.
“The PUV Modernization Program is a transformative project that addresses multiple national issues—public safety, environmental sustainability, and economic growth,” said ABMAP Executive Director Edgar Manuel.
“It is disheartening to hear that funding has run dry, especially when we are on the brink of realizing its immense benefits,” he added.
Manuel said the government must act quickly to keep the program going, noting the importance of allocating the necessary resources.
The PUVMP, established in 2017 by the Department of Transportation (DOTr), aims to replace aging jeepneys with modern, Euro 4-compliant vehicles.
Based on ABMAP’s estimates, this program is currently supporting over 10,000 employees across vehicle producers and parts manufacturers, including companies building vehicle bodies, chassis, and components.
This extends to an additional 20,000 workers in the auto parts manufacturing sector which supplies essential components, the group said.
“Modern PUVs are not just about improving public transport; they are about creating opportunities for local manufacturers and workers,” said Manuel.
Manuel stressed that the PUVMP is essentially a “lifeline” for local industries that has been on the decline in recent years.
According to ABMAP, at least 100 modern jeepneys produced in the Philippines could generate up to P125 billion in economic activity, particularly in investments in manufacturing, infrastructure, and related services.
Since it was launched, the PUVMP has faced a number of delays, with concerns ranging from the program implementation to the welfare of PUV drivers.
Manuel emphasized that these delays compromises the safety of commuters, the health of the environment, and the livelihoods of thousands of workers.
“The government must step in and ensure that this program continues without interruption,” he said.
As such, AMBAP is also asking the government to explore alternative funding mechanisms, such as partnerships with private financial institutions and international development agencies.
“We need a collective effort to secure the necessary funding and keep the momentum going. The future of our public transport system and the local automotive industry depends on it,” the group said.
“With the right support, the PUVMP can transform the Philippines’ public transport system and set a new standard for sustainable mobility in the region,” they added.
