EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
S. No. 
8 R 7
# 5 ;  
f s » n i .u c
' 
of thf i&i ct otarp
'19 
AU6-5 P5 51
Introduced by Senator Grace Poe
RECE,'' D : v
AN ACT
PROVIDING FOR A JUST AND HUMANE PUBLIC UTILITY VEHICLE (PUV) 
MODERNIZATION 
PROGRAM, 
WITH 
TRANSITORY ASSISTANCE AND 
SERVICES 
RENDERED 
TO 
PUV 
DRIVERS, 
OPERATORS 
AND 
STAKEHOLDERS, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES
Explanatory Note
Most frustrated commuters and drivers would attribute the decline of the 
jeepney to some cultural vice. Some would say that the jeepney is the result of the 
Filipino's lack of discipline; others would say that it is the product of a tendency 
towards "pwede na" solutions. And others would share the sentiment of Nick 
Joaquin: the jeepney is just another variation of our "heritage of smallness", or our 
tendency to hide behind small comforts in the face of large problems.1
These critiques overlook the fact that the story of the jeepney and its decline 
is inextricable from mismanagement of transport development in the country. It is 
the story of a temporary policy which remained frozen in time.
The jeepney emerged from the rubble of World War II.2 Before the war, a 
system of streetcars known as Tranvias3 transported residents of Manila and its 
suburbs. The bombing of Manila during the war eradicated the Tranvia and left a 
gaping hole in the city's transport system. To fill the void, ingenious Filipinos 
repurposed surplus U.S. Army Jeeps in Manila's transport system. The jeeps were 
modified to suit their new role as well as the Filipino palette: metal roofs and parallel 
benches were installed, and the "army green" was replaced with more vibrant 
colors.4 
An entire industry catering to the 
production, 
modification, and 
maintenance of jeepneys emerged.
Joaquin, N. “A Heritage of Smallness"
Grava, S. “The Jeepney of Manila”. Traffic Quarterly, Vol. 26, 1972, pp.465-83.
3 Gamble, A. “Manila's Long-Lost 'Tranvias' Once the Envy of Asia” Skyrise Cities (\0 March 2017). Retrieved 
from https://skvrisecities.eom/news/20l7/03/manilas-long-lost-tranvias-once-envv-asia
4 Fernandez, R. “Jeepney, icon of Ph transport, evolves” Sim Star Cebu (19 December 20180).


Over time, economic and demographic growth caused Manila to expand. It 
sprawled in every direction, eventually spilling over into the adjacent provinces of 
Cavite, Laguna, Rizal, and Bulacan.3 * 5 Since appropriate rail-based mass transit was 
not established, there was an exponential increase in the number of private vehicles. 
Fares on buses and jeepneys were kept low to cater to the commuters who could 
not afford to buy their vehicles. In turn, the low fares (plus the oppressive boundary 
system) prevented jeepney drivers and operators from ever upgrading their vehicles.
Due to the policy trajectory above, the "King of the Road" has become the 
"King of Decline". Most jeepneys lack basic security features other than handrails. 
Failing brakes are a common cause of accidents. Bald tires are ubiquitous. Their 
toxic, noxious emissions are endemic to Manila's atmosphere. Yet jeepneys (and 
buses) continue to account for 70% of all person-trips in Metro Manila. 6
For the sake of our commuters, modernizing the jeepney is a necessary 
endeavour. Efforts to do so have existed since 1992. Some prominent examples 
include President Fidel V. Ramos' directive to DOTC Secretary Jesus Garcia Jr. to 
"...initiate moves that will lead to the eventual phase out of jeepneys"; The Aquino 
administration's "PUV Rationalization Program", which launched in 2015. The Duterte 
administration's "PUV Modernization Program" (PUVMP) is part of the decades-long 
effort to bring the Jeepney to the modern age.
Yet modernizing the jeepney is also a perennial source of conflict- a 
heavyweight boxing match between policy makers and jeepney drivers which never 
seems to end. Tilt the scales in one way, and the entire effort to modernize the 
jeepney screeches to a halt. Tilted the scales the other way, and the close to 
200,000 jeepney drivers and operators lose their only source of livelihood.
This present measure proposes a middle ground. It seeks to establish a "Just 
and Humane PUV Modernization Program" which will balance the need for a safer, 
more environmentally-sound public transport with the rights of those whose 
livelihood depends on this. Under this program, jeepneys shall only be required to 
replace their engines to make them Euro 4 compliant. To lighten the capital burden, 
the government shall provide financial assistance which shall not be less than 10% 
of the price per unit. The interest rate on loan amortization shall not exceed 4% 
diminishing annual interest considering the mass/public nature of PUV services, and 
the loan amortization period shall be at least fifteen (15) years.
In view of the foregoing, immediate approval of this measure is eagerly
sought.
/Gj/ a CE POE
3 National Economic and Development Authority Region 4A (NEDA R4A). Regional Development Plan for
Region 4A, 2017-2022. See also Japan International Cooperation Agency (JICA). Roadmap For Transport
Infrastructure Development For Metro Manila And Its Surrounding Areas (Region III & Region Iv-A) (2014)
6 Ibid.


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
S E N A T E
s. No. 8R7
o{ tijf ^•'crrlurp
'19 AUG-5 P5 51
Introduced by Senator Grace Poe
AN ACT
PROVIDING FOR A JUST AND HUMANE PUBLIC UTILITY VEHICLE (PUV) 
MODERNIZATION 
PROGRAM, WITH 
TRANSITORY ASSISTANCE AND 
SERVICES 
RENDERED 
TO 
PUV 
DRIVERS, 
OPERATORS 
AND 
STAKEHOLDERS, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES
Be it enacted by the Senate and House o f Representatives o f the Philippines 
in Congress assembled:
1 
Section 1. Short Title. -  This Act shall be known as the "Just and Humane
2 
Public Utility Vehicles Modernization Act."
3 
Sec. 2. Declaration o f Policy. -  It is hereby declared the policy of the State, in
4 
accordance with the Constitution, that the right to travel shall not be impaired, be it
5 
due to lack of means, access, or capability to pay of the general public. Public
6 
transportation and mobility, therefore, is a sector that should be developed,
7 
modernized and sustained by the State based on principles of justice, equity and
8 
ecological sustainability.
9 
At the same time, the State acknowledges the transportation sector as both
10 
public service and enterprise. As an enterprise employing labor, deemed by law as
11 
the primary social economic force, the State must protect the rights of workers
12 
within the transportation service industry and promote their welfare. Towards this
13 
end, the State shall encourage the creation of a people-centered strategy that
14 
represents the core of economic and social development. It therefore ensures that
15 
the transportation sector develops and modernizes not just technologically, but also


1 
in accordance with principles of justice and equity, promoting full, productive
2 
employment and decent work for all.
3 
Sec. 3. Objectives. -  This Act shall have the following objectives:
4 
(a) To make public land transportation safer, more comfortable, and
5 
environmentally sustainable for the 
riding 
public through 
the
6 
modernization of Public Utility Vehicles (PUVs) while ensuring that the
7 
security of tenure of long-standing drivers in the PUV industry will be
8 
protected and that their right to work until retirement will not be
9 
compromised;
10 
(b) To provide a means of support to drivers who can no longer take part
11 
in the PUV sector due to various reasons, including those who choose
12 
to pursue work in a different sector and thus require retraining and
13 
reskilling; and
14 
(c) To guarantee genuine and fair competition, and a level playing field
15 
within the PUV sector.
16 
Sec. 4. PUV Modernization Program (PUVMP). -  A PUV Modernization
17 
Program, herein referred to as "the Program" is hereby established in order to
18 
enhance the safety, efficiency and sustainability of public ground transportation. The
19 
Department of Transportation (DOTr), in consultation with other concerned agencies
20 
and stakeholders, shall develop and promulgate guidelines and policies for the
21 
phased transition from the current PUVs to standards-compliant vehicles. The DOTr
22 
shall also provide for consultation and policy-making spaces through which
23 
stakeholders in the process can provide recommendations and reform options to
24 
DOTr and other relevant government agencies.
25 
Sec. 5. Engine and Replacement Specification. -
26 
(a) PUVs tested and proven to be road-worthy by the DOTr and
27 
Department of Trade and Industry's Bureau of Philippine Standards
28 
(DTI-BPS) shall only be required to have engines replaced to be Euro 4
29 
compliant;
30 
(b)The 
remaining 
budget 
under 
DTI's 
Comprehensive 
Automotive
31 
Resurgence Strategy (CARS) program shall be used to incentivize and


1 
support the creation and assembly of locally manufactured PUV units
2 
and parts;
3 
(c) Only emission testing centers duly authorized by the DTI, and which
4 
follow the standards set by the Department of Environment and
5 
Natural Resources (DENR) and DOTr shall be used in registering PUVs
6 
in regular emission testing; and
7 
(d) DOTr shall plan for a phased implementation of the program following
8 
a five (5) year transition period.
9 
Sec. 6. Financial Assistance. -
10 
(a) Government Subsidy - Government financial assistance provided to
11 
drivers/operators who elect to modernize shall not be lower than
12 
10% of the price per unit to lighten the capital burden of
13 
modernization.
14 
(b) Loan Interest/Payment Options
15 
i. A 
tripartite 
mechanism 
involving 
government, 
financing
16 
institutions and PUV operators/owners shall be established to
17 
set policies for the loan 
program 
and other issues on
18 
implementation. Loan requirements shall be simplified and
19 
tailored to the current situation and standing of PUV drivers and
20 
operators.
21 
ii. The interest rate on loan amortization shall not exceed 4%
22 
diminishing annual interest considering the mass/public nature
23 
of PUV services.
24 
iii. The loan amortization period shall be at least fifteen (15) years;
25 
subject to re-computation once a driver/operator decides to
26 
shorten the said period or is able to pay in full before its
27 
maturity: 
Provided, 
that the total 
cost of 
the 
monthly
28 
amortization shall be proportional to the monthly income of a
29 
PUV driver or operator.
30 
Sec. 8. Compensation Option. -  A driver who can no longer take part in the
31 
PUV sector due to the Program shall be given a reasonable amount of financial
32 
assistance to enable them to venture into other forms of livelihood.


1 
Sec. 9. PUV Sector Competitiveness Enhancement -  To prevent unwanted
2 
competition between drivers and operators planning on operating in the same area,
3 
a 
"first 
usage7"first 
presence" 
policy 
shall 
be 
implemented. 
Long 
term
4 
existing/residential operators/drivers within a particular area shall be given priority in
5 
route assignment.
6 
Sec. 10. Appropriations. -  The equivalent of twenty percent (20%) annual
7 
share on of the total gross collections of the Motor Vehicle User's Charge (MVUC)
8 
collected pursuant to Republic Act No. 8794, as amended, shall be utilized to fund
9 
this Act. The amount shall be indicated as a separate line item under the budget of
10 
the DOTr in the annual General Appropriations Act (GAA).
11 
Sec. 11. Impiementing Ruies and Reguiations. -  The Secretary of the
12 
Department of Transportation, in consultation with other relevant government
13 
agencies and transport sector groups, shall issue the rules and regulations necessary
14 
for the effective implementation of this Act within sixty (60) days of its effectivity;
15 
Sec. 12. Separabiiity Ciause. -  If for any reason, any part or provision of this
16 
Act is declared invalid or unconstitutional, the remaining parts or provisions not
17 
affected thereby shall remain in full force and effect.
18 
Sec. 13. Repeaiing Ciause. -  All laws, executive orders, presidential decrees,
19 
rules and regulations or parts thereof contrary to or inconsistent with any provisions
20 
of this Act are hereby repealed, amended or modified accordingly.
21 
Sec. 14. Effectivity. -  This Act shall take effect fifteen (15) days after its
22 
publication in the Official Gazette or in two (2) national newspapers of general
23 
circulation.
Approved,