BRIEFING PAPER FOR

PUV MODERNIZATION PROGRAM

The Department of Transportation (DOTr) is pushing for an aggressive but comprehensive initiative dubbed as the
Road-Based Public Transport Reform Program (RBPTRP). It was conceived primarily to mitigate or address relevant
issues, not limited to safety, traffic congestion and air pollution which have negative social and economic impacts in
our country’s growth and development. The said Program has four (4) complementary gears, such as: (1) PUV
Modernization; (2) Integrated Terminal Exchange; (3) Bus-Rapid Transit; and (4) Intelligent Transport System.

The PUV Modernization Program (PUVMP) is a large-scale transformational plan and flagship project under President
Duterte’s administration that envisions a restructured, modern, well-managed and environmentally sustainable
transport sector where drivers and operators have stable, sufficient and dignified livelihoods while commuters arrive at
their destinations in a quick, safe and comfortable manner. It adopts ten (10) components which include the following:

1. Regulatory Reform (e.g. Omnibus Franchising Guidelines)

2. LGU – Local Public Transport Route Planning
3. Route Rationalization
4. Fleet Modernization
5. Industry Consolidation
6. Financing PUV Modernization
7. Vehicle Useful Life Program
8. Pilot Implementation
9. Stakeholders Support Mechanism
10. Communication

Although DOTr is the lead agency for this Program, it has engaged and continuously involving potential partners to
pursue this reform initiative. The Office of Transportation Cooperatives (OTC), as one of the attached agencies of
DOTr, was tapped to be on board as one of the implementing partners. OTC’s plays a primarily role in the industry
consolidation and provide supporting task for the rest of the above-cited components such as regulatory reform, fleet
modernization, financing, pilot implementation, support mechanism and communication plan.

The DOTr launching of the Omnibus Franchising Guidelines (OFG) in 2017 gave birth to the PUVMP and started its
gear-components to rotate/move. Putting in mind its primary function in the PUVMP implementation, OTC has adopted
and continuously involve in several activities/undertakings, not limited to the following:

1. Study and issuance supporting resolutions/policies to implement certain provisions of the Omnibus Franchising
Guidelines;

2. Participate in the formulation of LTFRB Memorandum Circulars on industry consolidation and transition;

3. Establish and maintains its PUVMP Project Management Office (PMO) and Help Desk Officers in LTFRB Regional
Offices;

4. Develop comprehensive database for Transport Service Cooperatives, Operators, Drivers and Allied Workers;

5. Develop and produced PUVMP IEC Design and Materials and Other TSC Promotional Handbook;
6. Participate in the Inter-Agency Roadshow Activities and other related PUVMP promotional activities (DOTr, LTO,
LTFRB and Other Partners);

7. Organize new transport service cooperatives and/or encourage membership expansion of existing ones;

8. Develop supporting capacity-building program and other technical assistance for TSC officers, drivers and allied
workers;

9. Continuing partnership and collaboration with the Cooperative Development Authority (CDA) to harmonize rules
and regulations governing transport service cooperatives;

10. Monitor and evaluate the status and performance of PUVMP TSC-implementors to determine compliance with the
program-requirements and assist in sustaining their operations;

11. Institute referral system for support services needed by affected TSCs and members, such as implementation of
the following special DOTr-led support programs like the “Tsuper Iskolar” and “Pantawid-Pasada”.

12. Submit and coordinate proposals to expand OTC resources and update internal guidelines on resource
management; and

13. Perform other related tasks as maybe assigned by DOTr.

Prior to the PUVMP implementation, there were only a total of 440 accredited TSCs nationwide. As a result of the
collaborative efforts with other implementing partners, OTC has now 1,391 accredited TSCs (as of early part of
December 2020). From the initial PUVMP 4 TC-implementors in CY2018 with 147 operational modernized PUVs, we
have now a total of 64 TCs operating 1,342.

Despite the effects, limitations and restrictions of COVID-19 pandemic, the OTC was able to engage its clientele and
other stakeholders using other platforms or mode (e.g. online transactions for frontline services, IEC activities, and
webinars), although other majority of the work program items and supposed undertakings were put into halt and/or
revised to suit the current situation.