Franchises of traditional jeepneys expire June 30

Operators of traditional jeepneys, UV Express and multi-cabs have until June 30 to operate unless they join a cooperative or corporation to be able to purchase modern PUVs, according to the Land Transportation Franchising and Regulatory Board (LTFRB).

The LTFRB recently extended the franchises of traditional jeepneys up to June 30 instead of March 31.

The LTFRB made the extension after transport groups clamored to stop the phaseout of traditional jeepneys.

In line with the government’s Public Utility Vehicle Modernization Program (PUVMP), the LTFRB said operators who fail to meet the consolidation requirement would have their franchises or certificates of public convenience (CPC) revoked.

“The CPC of the operators who fail to join the existing consolidated entity after June 30 will be reverted to the state,” according to the LTFRB memorandum.

The franchises of PUV operators who fail to join a cooperative or corporation will be automatically rewarded to the existing consolidated entity operating on the same route, according to the LTFRB.

However, operators who meet the June 30 deadline will have their provisional authority to operate until Dec. 31.

The board said the implementation of the PUV modernization program has long been delayed to help operators cope with the adverse impact of the pandemic and soaring cost of fuel.

Transport workers said the program is anti-poor and promotes monopoly as it requires the acquisition of multimillion-peso modern jeepneys and route consolidation.

The board said affected operators may still avail themselves of the government’s social intervention initiatives.

“There will be mediation procedures in case of rejection in an existing consolidated entity, be it a cooperative or a corporation,” the LTFRB said.