LTFRB Open to Discussing 5-Year Franchise Extension for Jeepney Operators

Manila, Philippines – The Land Transportation Franchising and Regulatory Board (LTFRB) is willing to engage in discussions with jeepney operators, including members of the transport group Pinagkaisang Samahan ng mga Tsuper at Operators Nationwide (Piston), regarding their request to extend the validity of their franchise to five years. This consideration comes with the condition that they consolidate into a cooperative, in line with the public utility vehicle modernization program (PUVMP).

According to Philippines News Agency, LTFRB chair Teofilo Guadiz III stated that while currently operators are given a one-year provisional authority, this could be extended to five years if they participate in the modernization program. Guadiz mentioned that the agency is open to discussing various concerns of the operators, including consolidation, franchise validity term, and compliance with requirements. As of December 31, 2023, PUV operators are required to consolidate into a cooperative as a prerequisite for vehicle registration in the following year.

Guadiz expressed hope for a constructive dialogue with Piston and is open to addressing areas where the LTFRB can provide concessions or make adjustments. Approximately 60 percent of PUVs have already complied with the consolidation policy, and the LTFRB expects this number to increase to 85 to 90 percent by the end of December.

The LTFRB clarified that forming a cooperative is the initial step towards modernization, and operators are not obligated to purchase new units immediately. Guadiz assured that as long as current vehicles meet the standards set by the Land Transportation Office (LTO), they can continue operating.

Meanwhile, Metropolitan Manila Development Authority chair Romando Artes reported no significant disruptions due to the ongoing three-day transport strike led by Piston. The MMDA and other government units have deployed vehicles and offered free rides to mitigate the impact of the strike.

In a related development, AGRI Party-list Rep. Wilbert T. Lee filed House Resolution No. 1474, urging concerned agencies to simplify the requirements of the PUVMP. Lee emphasized the need for Landbank and the Development Bank of the Philippines (DBP) to review their policies and streamline processes, particularly for PUV operators and drivers who have cleared requirements with the LTFRB and LTO. Lee also highlighted the concerns of jeepney drivers and operators about potentially losing their livelihoods due to the modernization program and called for easier access to loans.