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Here’s What’s in Store for the Jeepney Modernization Program

Are you ready to say goodbye to the old jeepney?

Perhaps it won’t be for many drivers and operators today. But still, the Modernization Program is already set in motion. In fact, there’s already the unveiling of the new PUV prototypes this October 12, with as many as 14 modern jeepneys to be introduced to the public.

But this is just the tip of the iceberg.  Here’s what you need to know about the Jeepney Modernization Program:

Is it modernization? Or really a phaseout?

According to drivers, the term “modernization” is really just “phaseout” in sheep’s clothing.

But according to Atty. Lizada: “The jeepney as a denomination stays. What the government is fixing right now is what kind of jeepney should be used on the road that is compliant with the Clean Air Act, and can give the usual convenience and safety for the riding public.

What happens to the old jeepneys?

The government will buy each of them for P30,000 (salvage fee) and will later be scrapped.

How many jeepneys will be released?

The government plans to release around 200,000 to 250,000 jeepneys.

What’s the government’s time line for this?

According to Raquelsantos, it will take around three years to release 200,000 units in the Philippines.

Jeepney
From Wikimedia Commons, for illustrative purposes only

What kinds of jeepneys will be used?

There will be two types that will ply the road: Electric Jeeps, or the Euro-4 compliant ones.

How much will the jeepneys cost?

The electric jeepney and Euro-4 compliant jeepneys will cost around P1.2 to P1.6 million.

How much will the government spend for the entire program?

They will spend way more than P16 billion, to say the least.

In fact, the P16 billion alone will be used for the five-percent subsidy (but not more than P80,000) that the government will give to each driver.

How will the jeepney drivers pay for the jeepneys?

Once the government initially pays the five-percent subsidy, then the remaining amount will be paid by the jeepney driver within a seven-year loan term, at a 5- to 6-percent interest rate per year.

How much will the drivers pay?

Generally, they will need to pay Land Bank P800 a day for 7 years. This will be for a vehicle priced at P1.6 million. Note that drivers earn only around P600 per day, so they will need to add P200 more to their daily payments.

This is the main reason why drivers keep opposing the Modernization Program.

What will be some of the conditions set by the government for jeepney drivers?

Initially, the jeepney drivers are mandated to form a cooperative or association to be part of the program.

“They have to go together either a coop, association, corporation, and the coop will now own the franchise. Inside, they will professionalize dispatching of the units… and then you have a safety officer,” according to Atty. Lizada.

What’s more, salary for all jeepney drivers will be standardized to prevent unruly actions as a result of competing for passengers.

What are the jeepney’s features under the Modernization Program?

The jeepney’s designs will be significantly altered. Its boxy shape will be replaced with a longer body that looks similar to a van.

The standard doors will be on the side instead of the rear. It will also be equipped with power steering, hand brake, and–for some units–air conditioners. It will also have bigger passenger accommodation due to its longer frame.

 

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16 Comments

  1. October 6, 2017 at 3:32 am — Reply

    the picture above says it all what jeep is all bout. modernization is good, period but it shouldn’t be a burden to a/some segment of our society especially the millions of our small time merchant people and their likes who uses this type of transport.
    looking at the new design, there is no way they can compete with the old sturdy carry all kind of cargo jeepneys.
    two type of jeepney, the ejeepney or? why or ( where it should be ) and the euro 4 compliant.
    side door design? in an emergency there is difficulty in getting injured people in, where as the jeepney rear end door can be used/utilize for emergency such as what i mentioned, also the new design jeeps are not old/senior citizens and PWD;s friendly.
    government should clarify which one can be used for the needs of some segment of our society and not lump them into one design fits all.
    travel to the cavite area and there you’ll see the side door entry design van/jeep since the 70’s. let us know what you think.

    • October 6, 2017 at 9:53 am — Reply

      Hi Rolando,
      You have a good point there.

      Regarding the design as not being “PWD- and/or senior citizen- friendly”, Mr. Santos of the CARS program said that the door’s size, which is 85 cm, is enough for a wheelchair to get in. And that a customized design is “still being made by their technical committee.”

      Let’s see if they’ll stay true to their word.

  2. Anonymous
    October 18, 2017 at 4:08 am — Reply

    How about people living in a remote places where rough roads, winding roads and mountainous terrain? Thay modern jeepney i guess dies not serve the people. Is the government considering all jeepneys in the Philippines?
    Please travel around.remotes places and see for urself.

    • Anonymous
      November 3, 2017 at 4:27 pm — Reply

      The old units will be sent to remote areas

  3. Anonymous
    January 16, 2018 at 11:30 pm — Reply

    How about an operator who has a jeep but would like to take advantage of this program they have their own line under a cooperative but would rather do it as an individual. Would that be possible?

    • January 17, 2018 at 9:46 am — Reply

      Hi,
      You need to be under a cooperative or corporation to avail of the Modernization Program subsidy package. Still, you can do it as an individual, but you won’t get any help from the government.

  4. January 26, 2018 at 3:42 pm — Reply

    I agree with the comment before that the modern styles for a new type of Jeepney is not practical for everyone. E-Jeepney is an idea for urban Manila, but not reliable and save for rural areas.

  5. Anonymous
    April 4, 2018 at 11:36 pm — Reply

    hi,
    how about on the rainy season, mostly the road is flooded.
    Ejeepney are safe to run on the flooded area?

    • April 5, 2018 at 12:12 pm — Reply

      Hi!
      Some e-jeepney advocates say that floodwaters reaching half the tire’s height is okay. However, there are no actual tests to validate this claim, so we’re not really sure if this is true (for now). 🙂

  6. Benjamin A. Roque
    July 22, 2018 at 3:01 pm — Reply

    I’m an individual wanting to buy an e-jeepney when i retire. My questions are as follows:

    Is it really mandatory to be part of the cooperative, companies, etc. in order to be in this business?

    Can i not simply, register my e-jeep to somebody who has Franchise, pay him the amount and drive to earn?

    Please, advise as to what is the best approach to start this business when i retire.

    • July 23, 2018 at 1:06 pm — Reply

      Hi Benjamin,
      Unfortunately, yes–you need to be a part of a cooperative or company for this. That’s the only way.
      Why not just join a cooperative? It’s not difficult to get in as long as you meet their requirements.

      • October 4, 2018 at 4:07 pm — Reply

        I had the same thought as Benjamin’s.

        But come to think of it, aside from joining a coop (yeah, can be done easily), I’ve read that the “operator” must purchase at least 10 units. This part is already a road block for individual operators.

        Anyway, to control the number of old vehicles in the road, isn’t it better to *limit the franchise issuance* rather than introducing a new type of PUV ? I mean, if a vehicle is allowed to run for let’s just say 8 years or 10 years. And after that, no franchise will be issued for it. Thus, nobody can run it anymore — wouldn’t this way be a better control?

        … just a thought…

  7. rairai
    October 28, 2018 at 5:07 pm — Reply

    hi mam, is it possible for a new player like us to avail this program. do we have a chance to get a franchise because i am interested to buy a modernize jeepney but my concerm is if i can avail a franchise. my concern is what if we buy a medernize jeepney but at the end we can not get a frachise from LTFRB? Thank you and Godbless!

  8. Simon Alford
    November 10, 2018 at 7:31 am — Reply

    Hi there,
    I am a Australian resident but i am thinking about moving to the Philippines to be with my wife there and family and was wondering how much it would be to get a licence to drive a jeepney there???
    Also curious to how much it would be to own a jeepney used or new?
    Any feed back would be greatly appreciated!
    Thank you and greetings from down under =)

    Simon.

    • November 14, 2018 at 3:03 pm — Reply

      Hi Simon,
      You need to get a professional license first. You can click this link for the guidelines.

      Here’s a complete price list of new jeepneys for sale. By the way, I would highly suggest you buy the newer ones, since the old jeepneys we have here have far too much carbon emissions to be considered even “minimally safe” these days.

      Good luck! 🙂

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