2.

1 Introduction

The pollution of the old vehicle is also due to the rise of air pollution level and the
environment is increasingly degrading. It is also very difficult to use old vehicles that can
only cause passengers accident. Contrary to the scheme program, federations and public
transport, the phase-out and modernization will require bulk usage as we also need to
progress via it. The fact that certain cars can be redeemed through the complete PUV
modernization program is just a major expense to society. Philippine jeepney is being
used today that can cause poor environment and is no longer safe for passengers.
(Llander, 2019). Study shows that the country's new jeepney design is not actually
standardized and suits the physique of its most frequent passengers in the Philippines.
This proves the need to upgrade the current design of one of the key modes of
transportation in the world. Evaluating the design developed in the study shows that it
still meets the requirements set by the Philippine government. (Baluyot, M et. al., 2017)

2.2 Traditional Jeepney Profile

Jeepneys in the Philippines are the most popular mode of public transport and are a true
anachronism. Upon leaving the Philippines at the end of World War II, American GIs got
their start as Willy Jeeps left behind. Then as buses with galvanized or stainless-steel
frames, fabric covers rather than side windows and longitudinally fixed benches with
room for 20 (or more) passengers, Filipinos started to recycle them. These are often
colorful and adorned with pious icons, not only governing Manila, but also serving
distinctive routes across the country. (Meiners, 2016). There is a wealth of brazen
adornments on the chrome bodies, either buffed to a shine or painted in bright colors,
from small nickel stallions on the hood-and-chrome embellishments to non-functional
antennas festooned
with plastic streamers. The exterior is painted with graffiti and religious slogans such as "God
Almighty," but jeepneys have yet to become popular as billboards for something except the
whimsy of their owners (Anais).

A typical jeepney would be able to accommodate between 10 and 16 commuters and for
maximum capacity is around 20 commuters, all seated knee-to-knee on twin benches and without
indoor air conditioning or windows to protect passengers from sun, rain and fumes. With Manila
as one of the busiest mega-cities in Asia, passengers frequently have to deal with these
conditions for hours. There are still no seatbelts or vehicle approaches to accommodate disabled
commuters (Gregorio, 2018). The traditional jeepney has not been upgraded it’s design and other
features considering for commuters comfort and convenience that much as we can have stay and
retain that part of our culture. In reality, the current design of jeepneys in the country is not
standardized and suitable for the physical fitness of its most frequent passengers in the
Philippines and there’s a need to develop the existing configuration of one of the country's main
modes of transport (Baluyot et. al, 2017)

In terms of the economic profile of the traditional jeepney, a financial estimation using
traditional valuation methods (Agaton et.al, 2019) shows that for a long-term investment against
e-jeepney, traditional jeepney has a higher market value. This is due also to the fuel consumption
of diesel compared to electronically operated jeepneys. For the 2010 Sarao Motors price list, a
fully equipped 20-passenger jeepney "Isuzu 4BC1 engine, 75-percent stainless-steel body, stereo
system, stickers, halogen lights, side aluminum jalousies" were priced at P510,000 if you would
buy it in cash. According to the Association of Automotive Body Manufacturers of the
Philippines (ABMAP), the group calculated the total cost of running jeepneys and revealed that
it would be more beneficial to all. Under the current system, the average gross location of a
jeepney driver would be around P4,000 per day. Take off about P1,000 for fuel, P600 for
operator boundary or driver salary and maintenance costs for P400 (Castillo, 2017).

Another appeal that traditional jeepneys have is its mobility and its fair number of passengers it
can carry (Gregorio, 2018). Considering that drivers of the traditional jeepneys have to provide
financing for their own diesel consumption, a decent number of passengers multiplied by a fixed
fare is necessary for the continuity of traditional jeepneys. Along with this appeal is that since
traditional jeepneys has been in the Philippines for a fairly long time, its parts and maintenance is
much easier to conduct because mechanics and vulcanizing shops, in a sense, has gotten used to
this type of public transportation.

This can be viewed as a negative effect of diesel consuming traditional jeepneys against
modernized PUVs. This argument has been used over and over for the replacement of traditional
jeepney into modernized PUVs which the government wants to emphasize.

In a holistic view regarding the traditional jeepney, its cultural roots connecting to the country’s
economy and environment has long been adjusted by the passenger along with time. The
advantages of commuting through traditional jeepneys undermine its disadvantages.

Despite its widespread appeal in economics and mobility for a long time, Jeepneys have a fair
share of blame for contributing to the pollution problem that is prevalent in Manila Metro. Since
the jeepney industry does not require any mass manufacturing, it relies instead on a fleet
consisting of second-hand vehicles modified with scavenged parts and reliant on polluting diesel.
Due to the contribution of the jeepney industry to emissions, the new presidential administration
in the Philippines has revised its regulations on public utility vehicles. Some of the proposed
regulations are focused on vehicle size, accessibility and engine efficiency, which could
potentially stamp out thousands of vehicles currently in service and, in turn, the livelihoods of
their low-income drivers (Gregorio, 2018).
Traditional jeepneys emit greenhouse gases 20.81–29.14 CO2 eq/yr. This is considered to be a
rather large amount of CO2 emitted by a single vehicle throughout a year. On the other hand,
modernized PUVs contribute only to the greenhouse gas emission for up to only 2.78–3.70 t
CO2 eq/yr by a single unit. There is at least 75% decline of greenhouse gas emission by
comparison and if favor of the modernized PUV (Agaton et.al, 2020). This result in terms of
energy demand implies that the transition from traditional jeepneys to modernized PUVs can
save up to 5.28–7.93 million barrels of gasoline per year per unit. In terms also of pollutants,
modernized PUVs decreases the PM, NOx, SOx, and CO emissions by an average of 96%, 82%,
59%, and 93%, respectively (Agaton et.al, 2020).

2.3 The “Public Utility Vehicle Modernization Program” Overview

The PUVMP was officially launched on 19 June 2017, when the Secretary of the Department of
Transportation (DOTr) signed the 'Omnibus Guidelines for the Preparation and Identification of
Public Road Transportation Services and Franchise Issuance' to be enforced by the Land
Transportation Franchising and Regulatory Board (LTFRB) in cooperation with the Local
Government Units (LGUs). The new released Modern Jeep, the new vehicles are fitted with
Closed Circuit TV (CCTV), Automated Fare Collection System (AFCS), on-board GPS and Wi-
Fi. The interior has a spacious room, a headroom of 6 feet, and 23 seated passengers and 5
standing passengers can be carried. There are hand grabs available as well. During their test
drive from Plaza Divisoria to Barangay Bugo, the easternmost barangay of the city, the new
vehicles were noticed by commuters to be refreshing and very pleasant. (Bobby Lagsa, 2019).

The Philippines is in the midst of a six-year PUV modernization program that aims to replace old
low-emission and fuel-efficient vehicles with jeepney units to help minimize air pollution and
provide commuters with better means of transport. The modernization plan seeks to affect a
transition from existing vehicles on the road to 'high-quality public transportation requirements.'
The transport department described these items as follows: 'high-capacity vehicles, low-emission
vehicles, restructuring of fleets, a reformed business model and an efficient information
technology framework. Based on current market rates that are readily available on the Internet,
the vehicle with such technology ranges from P1 million to P1.5 million. The PUV’s are a major
contributor to air pollution in the Philippines, as these vehicles are mostly powered by old and
dilapidated diesel engines, thus emitting particulate matter such as carbon monoxide, nitrogen,
sulfur dioxide and carbon dioxide. Under the program to modernize the famous Filipino jeep, the
government allows drivers and operators to use vehicles fitted with low-emission Euro 4
technology. The baseline jeepney has a fuel economy of just 5.65 kilometers per liter (km/L),
much lower than the benchmark for engines operating on modern technology with a fuel
economy of 10.05 km/L (Marasigan, 2018).

This release of the modernized PUVs offer a very tempting effect for the commuters to transition
from traditional jeepneys towards modernized PUVs. The government aims to apply a
comprehensive system reform that could possibly affect entirely the public and land
transportation industry.

Although a fair amount of people especially claimed by some transport groups, are against the
PUVMP or the Public Utility Vehicle Modernization Program due to its implications that it is
anti-poor. Clark, Pampanga - Transportation Secretary Arthur Tugade clarified that it is not what
people think it is. Rather, it aims to provide quality yet affordable service to commuters and a
smooth transition to the jeepney operators. Nonetheless, Secretary Tugade wants to specify that
their aim is not to phase out traditional jeepneys but to strengthen the public road transport
sector.

A downside of this current situation of transitioning from traditional jeepneys to modernized

PUVs, specifically in Cagayan de Oro is that, operators are facing a franchise revocation if they
refuse to modernize their units (Jerusalem, 2020). According to Aminoden Guro, director of the
Land Transportation Franchising and Regulatory Board-10 (LTFRB-10). Due to this
announcement, the Oro Transport Service Cooperative (Orotsco) has started operating its 15
modernized PUVs plying the Bugo-Igpit route early in the of January, 2020. Guro said that the
opposition of some Bugo PUJ operators to the operation of Orotsco has already been resolved.
Part of the Public Utility Vehicle Modernization Program is to attract tourist. The government aims to
increase its tourism percentage with the help of PUVMP considering that jeepney is the main public
transport used in the Philippines (Adrian, 2019). Since an implication of the transition from traditional
jeepneys to modernized PUVs is the comfortability of transportation not only for Filipinos but also for
tourists. In addition, the Philippines is known for its Jeepney Icon and a transition can give a twist to this
world inseparable Filipino psyche.

Overall, the Public Utility Vehicle Modernization Program aims for the betterment of the Filipino people.
It is not anti-poor, and its goals are mainly geared towards the improvement of the lives of the Filipino
Citizen.

2.3 Modern Public Utility Vehicle

The new release Modern PUV has a minimal resemblance to the conventional jeepney and is
more similar to mini busses that are popular in other countries. These new designs include Euro
4 engines or solar panels, and for the convenience of commuters, the modern PUV upgraded
safety features such as speed limiters, accessibility features such as ramps and seatbelts. It will
also come with free Wi-Fi. Additional changes and upgrade too includes the internal structure for
this form of public transit will also be revised. The present jeepney system consists of passengers
tapping on the roof to stop the vehicle and transferring fares via the passenger line to the driver
(Gregorio, 2018). The new design really aided the concerns from the commuters’ viewpoint.
From the new released Modern PUV, we can see in a plain and visible vision the upgraded
features for the commuter’s satisfaction of their comfort and experiences. They're not joking
about the standing room part either; six-footers don't have to crouch to be comfortable. The rails
and bars made it look like a decent commuting vehicle, and the Beep Card entry is a page from
other countries. Even, the air-conditioning breeze was a welcome relief. Get on board, you
probably wouldn't even call it a jeepney. As a new unit, the side of the seats was comfortable
enough, and the wide windows offer the impression of airiness. The seats themselves were
elevated high, giving passengers a clear view of the lane. There was a lot of heat in the big
windows. Also, the frequent arrival and departure of passengers meant that the air conditioning
had to operate twice to keep the majority of the passengers cold. Perhaps a collection of curtains
will help keep the heat away. Again, the fact that it has air conditioning is worth a pat on the
back of the truck manufacturers. Perhaps the new seat cushions helped a little with the comfort
factor. As a whole, though, it was a pleasant experience riding a new PUV, which should be a
relief to the rest of us. (Andres, 2018)

The cost of transition from traditional jeepneys to modernized PUVs cannot be underestimated.
The first thing to consider in this matter is the cost of production. Traditional jeepneys have been
around the Philippines for a considerable amount of time and the cost of replacing them would
be expensive.

The cost of a single unit of modernized PUV is around 1.2 million to 1.6 million Pesos, which in
turn is loanable up to 6 years. Comparing this to traditional jeepneys which can be bought only
for around 600,000 thousand to 700,00 thousand pesos (Respicio, 2020). The manufacturing cost
itself poses a challenge for the Public Utility Vehicle Modernization Program.

A negative side of this costly modernized PUV production is that it strikes to the people,
especially transport groups, as an anti-poor program. Some transport groups like Pinagkaisang
Samahan ng mga Tsuper at Operator Nationwide (Piston), Alliance of Concerned Transport
Organization (Acto), and the Kilusang Mayo Uno (KMU) have already voiced out their opinion
regarding the so-called phasing out of traditional jeepneys.

An effect of this costly modernized PUV unit manufacturing and transport group conflicts is the
delayed completion of the “Omnibus Guidelines on the Planning and Identification of Public
Road Transportation Services and Franchise Issuance,” which was dated June 19, 2017 (Bueno,
2020). Department of Transportation (DOTr) primary target was to finish 85,000 modernized
PUV and be operatable by the end of July 2020 but only 2596 was in operation by that time.

In Cagayan de Oro, Misamis Oriental, at the time of Governor Yevgeny Vincente "Bambi"
Emano, the governor committed to loan 70,000 pesos per operator if they avail the
Modernization Program of the government (Rucat, 2020). As part of the PUVMP, last July 16,
2020, the Department of Transportation deployed 73 Omnibus Franchising Guidelines (OFG)-
compliant units that will ply different routes in the region.

An aspect to be considered regarding the transitioning of traditional jeepney into modernized

PUVs is its effects to the drivers. Although the government may see this project as a long-term
investment, the current financial situation of the traditional jeepney drivers poses a great problem
in this program. The government gave an answer regarding this problem by providing a
government subsidy for those who are willing to undergo the transition. The government is
willing to give a maximum subsidy of PHP 80,000 (which would cover most of the 5% down
payment for the purchase), the monthly amortization would be approximately PHP 21,000 for 7
years, inclusive of the 6% interest rate (Respicio, 2020).

On this note, Northern Mindanao transport cooperatives have made a step into taking loans in
order to move forward in the PUVMP. According to the Transport Cooperatives Office,
Northern Mindanao has 51 transport cooperatives, most of them based in Misamis Oriental,
particularly in Cagayan de Oro. Buktramco Chairperson of Cagayan de Oro, Melvin Erederos
had made a loan of 130 million pesos from Land bank in order to buy 52 modernized PUV units
priced at 2.5 million pesos each. 37 of these will be for Buktamco’s Cagayan de Oro operations,
while 15 will be for Bukidnon (Jerusalem, 2020).

Overall, the mass producing modernized PUVs poses a challenge to the government. The issue
of transitioning from traditional jeepneys and modernized PUVs cannot be omitted when
creating a comparative research of both vehicles. The economic impact of modernized PUVs can
clearly give a leeway towards good future investments for the financial growth of the country.
The challenge lies in the beginning but as part of the program, it offers a beautifully constructed
outcome for both the government and the citizens.

The environmental aspect of the Public Utility Vehicle Modernization Program can be looked upon the
unit’s emission. Traditional jeepneys clearly emit greenhouse gases directly due to its diesel fuel
consumption. On the other hand, one of the government’s strongest argument regarding the transition
of traditional jeepneys to modernized PUVs is that these new vehicles can greatly contribute to the
reduction of air pollution.

Modernized PUVs offer eco-friendly solutions to air pollution because of its engines which is compliant
with the international environment standards or electrically powered, with solar panels for roofs
(Philippine Daily Inquirer, 2017). With the proposed Eco PUV, however, costs would be significantly
reduced and drivers would be able to take home more. Sure, the driver's salary and limits remain at
P600. However, the cost of fuel can now be linked to a lower P570 per day. Maintenance costs can also
be reduced to P100 only. All of these are due to brand-new engines that require less maintenance
(Castillo, 2017). With modern jeepneys, drivers and passengers are worn out less, prone to less
pollution, and should travel safely to their destination. In the study of Quiros, et. al (2018), they
conducted to obtain benchmark fuel mileage and load factor data for in-use LPG and diesel
jeepneys operating on two selected urban routes: In Phase 1, a short one with a 13.25 km round
trip length and in Phase 2, a longer one with a 20.8 km round trip length. In the result table
below,

It shows the diesel

jeepney mileage ranged from 6.67-6.86 km/liter at an average load factor of approximately 63
per cent. The 2nd LPG jeepney mileage (with a superscript) was 4.24 km/liter with a diesel
equivalent mileage of 6.3 km/liter diesel with an average load factor of 60 percent. There was an
actual mileage and diesel equivalent mileage (with superscript b) lower than the diesel jeepney
and 2nd LPG jeepney mileage in the 3rd LPG jeepney that conducted simulated runs at 100
percent load factor. The load factors for the diesel and LPG jeepneys (excluding the 3rd LPG
jeepney) were similar. In Phase 2 on-road tests, the diesel Ph-2 jeepney mileage was 7.07
km/liter with an average load factor of about 70%. With a diesel equivalent mileage of 7.1
km/liter-diesel at an average load factor of 65 percent, the LPG Ph-2 jeepney mileage was 4.84
km/liter. The load factors were also similar to the jeepneys.

DENR testifies to the rejuvenating effect of using modernized PUVs against air pollution. This is
because of the EURO-4 engines that are introduced to be used for modernized PUVs. These
engines emit greenhouse gas which is 90 percent cleaner that the traditional jeepney counterpart.

A quick glance of DOTr’s PUVMP program about source of emissions clearly shows that air
pollution’s main contributor are vehicles mostly from Motorcycles and utility vehicles.

(Image source: https://earthjournalism.net/stories/amid-pandemic-questions-arise-over-timing-cost-of-jeepney-modernization)

Overall, the of modernized PUVs cag vie rather advantageous results for the improvement of air
quality to cities willing to undergo the Public Utility Vehicle Modernization Program.