‘Drivers have to earn P7K daily to pay for imported jeepneys’

DRIVERS need to earn at least P6,000 to as much as P7,000 daily to pay for the amortization of modernized jeepney units under the public utility vehicle (PUV) or jeepney modernization program, Rep. Bonifacio Bosita (PL, 1-Rider) said yesterday.

Bosita told the Land Transportation Franchising and Regulatory Board (LTFRB) during a hearing of the House Committee on Transportation that transport cooperatives would have to shell out a huge amount to pay their loans since each unit costs P1.6 million to P2.8 million.

He also expressed apprehension that base fares may rise from P30 to P40 even if the purchase of modernized jeepney units would be subsidized by the government.

Based on the computation of the Landbank of the Philippines, Bosita noted a loan for a P2.8 million unit with a six percent annual interest payable for seven years would cost cooperatives P40,000 monthly, excluding the cost of fuel, facilities, cooperative management, maintenance and other mandatory expenses.

He said drivers would need to earn P4,000 to P5,000 a day for such expenses and another P1,500 to P2,000 daily for their own income, for a total of P7,000 a day.

“Mr. Chair, we are so focused on this amount because, of course, the bigger the amount, the bigger the expenses that people would shoulder. Why the people? Because drivers would not have enough to pay the loans, where would they get the money? From commuters, so it’s the people who would shoulder this,” Bosita told the panel.

LTFRB Chairperson Teofilo Guadiz III said the computation is only accurate if the acquisition cost per jeepney is P2.8 million, stressing the cheaper option is locally manufactured units that cost P980,000 each.

“We respectfully differ with the computation of Honorable Bosita based on certain premises,” Guadiz said when asked by panel chair Antipolo Rep. Romeo Acop if the computation presented by Bosita was accurate.

When pressed, Guadiz said he would not say the computation is inaccurate if the cost of a vehicle is P2.8 million per unit, an answer which annoyed Acop, who scolded the LTFRB chairman.

“You are already on the defensive. Yes or no? Is that accurate?” Acop said, to which Guadiz replied: “We wish to