The Department of Transportation (DOTr) acknowledged that the Public Transport Modernization Program (PTMP) is currently not practical, citing financial difficulties faced by operators.
DOTr Secretary Vince Dizon revealed that many transport operators are struggling to repay bank loans used to purchase modern jeepney units.
He admitted that the program is encountering multiple challenges, prompting the agency to reassess its implementation.
Dizon further disclosed that banks have stopped providing loans for the modernization program due to financial constraints.
Each modern jeepney unit costs between ₱2.5 million to ₱2.8 million, and despite the government’s 15% subsidy, operators and cooperatives still need to pay around ₱2.5 million per unit.
Despite these setbacks, Dizon clarified that the modernization program will continue, and the DOTr is actively exploring solutions to address the financial burden on operators.
The Jeepney Modernization Program, originally known as the Public Utility Vehicle Modernization Program (PUVMP), was launched in 2017 under the Duterte administration to phase out old jeepneys and replace them with environmentally friendly, safer, and more efficient vehicles.
However, the program has faced strong opposition from transport groups, citing high costs, lack of financial support, and concerns over job displacement.
In 2024, the DOTr extended the deadline for jeepney consolidation to April 30, allowing operators more time to comply with modernization requirements.
Despite an 83% consolidation rate, the DOTr did not include the modernization program in its 2025 priority projects, focusing instead on infrastructure development such as airports, ports, and railway projects.
The agency may seek Congressional support to secure additional funding for modernization efforts.