THE Automotive Body Manufacturers Association of the Philippines (ABMAP) has asked the government to prioritize and provide more funding for the stalled Public Utility Vehicle (PUV) Modernization Program.
“ABMAP is urgently calling on the government to secure additional funding and prioritize the program, which is critical not only for modernizing dilapidated, polluting, and unsafe jeepneys but also for revitalizing the automotive industry,” the group said in a statement on Wednesday.
According to reports, the Development Bank of the Philippines and Land Bank of the Philippines have hit their lending limits for the program.
“The PUV Modernization Program is a transformative project that addresses multiple national issues — public safety, environmental sustainability, and economic growth,” ABMAP Executive Director Edgar Manuel said.
“It is disheartening to hear that funding has run dry, especially when we are on the brink of realizing its immense benefits. We urge the government to act swiftly and allocate the necessary resources to keep this program alive,” he added.
According to the group, the PUV modernization program is expected to directly support 10,000 employees of vehicle producers and parts manufacturers and indirectly support 20,000 others connected to the auto parts manufacturing industry.
“Modern PUVs are not just about improving public transport; they are about creating opportunities for manufacturers and workers,” Mr. Manuel said.
“With locally produced vehicles adding 50% local value, every modern PUV supports our domestic supply chain, reduces reliance on imported parts, and strengthens the economy,” he added.
ABMAP estimates that at least 100 modern jeepneys could generate up to P125 billion in economic activity on top of reducing fuel consumption and lowering operating costs.
The group proposed that the government explore alternative funding mechanisms via partnerships with private sector institutions and international development agencies.
“We need a collective effort to secure the necessary funding and keep the momentum going. The future of our public transport system and the automotive industry depends on it,” Mr. Manuel said. — Justine Irish D. Tabile