Philippine businesses support DOTr Secretary’s priorities for public and active transport,
among others

10 May 2023 – Transportation Secretary Jaime Bautista pushed for more Public-Private Partnerships and amending the Procurement Law to help fulfill his goal to transform Philippine transportation to global standards.

Sec. Bautista made the calls at a meeting with the Makati Business Club (MBC), which presented Sec. Bautista with a statement of support for the Reliable and Affordable Public Transportation initiatives of the Department of Transportation and the Administration.

While many of DOTr’s projects are covered by Official Development Assistance (ODA), Sec. Bautista outlined some of DOTr’s priority projects that welcome PPP:

  • For Air: Expansion and modernization of airports, including the Manila International Airport and 9 other regional airports
  • For Rail: North-South Commuter Railway, Metro Manila Subway, MRT-7, and the extension of LRT-1
  • For Road: Bus rapid transit systems in Cebu and Davao

“We are encouraging the private sector to support the operations of these projects,” Sec. Bautista said at the meeting with MBC members and partners in New World Hotel, Makati, on May 10. “Government has very limited funds to support infrastructure projects. We do have financing from ODAs and other institutions, but we need private sector financing too.”

MBC also supports DOTr’s push for an amended procurement law to accelerate the upgrade and acquisition of transport infrastructure, including air management systems and facilities. This will help reduce the risk of technical glitches at the Manila International Airport and other regional airports, and ensure smoother travel experiences.

The Statement of Support for Reliable and Affordable Public Transport commends the steps that DOTr is taking to improve road-based public and active transportation – including busways, jeepneys, bikes, and walking. The statement also invites the department for further dialogue on collaborative solutions – either through policy or projects – to address urgent commuter challenges. It has been signed by over 30 MBC executives so far.

The full Statement of Support can be viewed here.

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MBC asked Sec. Bautista to elaborate on the PUV Modernization Program (PUVMP), which some groups say could displace operators who cannot afford modern jeepneys.

Sec. Bautista said 60% of jeepney operators have already consolidated, which would help them to tap financing for the replacement vehicles. He said DOTr aims to have 90% of jeepney drivers and operators be consolidated by the end of the year, the new deadline for phasing out traditional jeepneys.

“We need to work more closely with local government to help PUV operators, drivers, and cooperatives receive financing,” said Sec. Bautista. LGUs have the authority to draft Local Public Transport Route Plans (LPTRP) that are approved by the Land Transportation Franchising and Regulatory Board (LTFRB). Many banks require applicants to present a LTPRP to apply for a loan for PUVs.

Bautista informed the audience of the other benefits of consolidation, including organized dispatching, better maintenance, training, minimum wage, and SSS and Medicare benefits.

The meeting with Bautista was the fourth session of MBC’s F2F with Cab Secs Series featuring key economic officials – in partnership with Acciona, SM Investments, Steel Asia – to deepen public-private dialogue and collaboration. This session was also sponsored by Angkas, Delbros Group, and Metro Pacific Tollways Corporation.

MBC promotes safe, sustainable, and affordable transportation via its Business For Biking Program in partnership with Shell Philippines and others. To learn more about this program and MBC’s transportation initiatives, please email trisha.teope@mbc.com.ph.

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