The Automotive Body Manufacturers Association of the Philippines (ABMAP) is calling on the government to urgently address the funding shortfall for the stalled Public Utility Vehicle (PUV) Modernization Program. This follows reports that the Development Bank of the Philippines (DBP) and Landbank have exhausted their allocated budgets for the initiative, jeopardizing progress in replacing aging, unsafe, and highly polluting jeepneys with modern, environmentally friendly alternatives.
ABMAP Executive Director Edgar Manuel expressed serious concern over the funding depletion. “The PUV Modernization Program is a transformative initiative that simultaneously enhances public safety, promotes environmental sustainability, and strengthens the local economy. The sudden halt due to financial constraints is deeply concerning. We urge the government to take immediate action in securing additional funds to ensure the continuity of this vital program,” Manuel stated.
The program, which aims to introduce modern, Euro 4-compliant PUVs, has been instrumental in job creation and economic stimulation. ABMAP estimates that over 10,000 workers across vehicle production and parts manufacturing benefit directly from the initiative, while an additional 20,000 workers in the auto parts sector depend on its continuity.
“Modern PUVs not only improve transportation but also provide significant economic opportunities for local manufacturers and their workforce,” Manuel emphasized. “With at least 50% of their value locally sourced, these vehicles support the domestic supply chain, reduce import dependence, and bolster the national economy.”
ABMAP projects that local production of at least 100 modern jeepneys could contribute up to PHP 125 billion in economic activity, spanning manufacturing, infrastructure, and auxiliary services. Additionally, the shift to fuel-efficient modern PUVs reduces operating costs for drivers and operators while aligning with global efforts to lower carbon emissions.
However, the lack of continued financial support threatens to derail these gains. “Each day of delay compromises commuter safety, environmental progress, and thousands of livelihoods. We urge the government to take decisive action and secure the necessary funding to keep this program moving forward,” Manuel warned.
ABMAP is also encouraging the exploration of alternative funding mechanisms, including collaborations with private financial institutions and international development organizations. “The success of the PUV Modernization Program is critical for the country’s transportation sector and industrial growth. We must work together to ensure its sustainability,” Manuel concluded.
