Department of Transportation(DOTr)

April 19, 2018 Dear Quennie Daganio, I refer to my letter of Apr 02, 2018 12:40:47 AM; about your request under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch, for PUV Modernization Program Industry Consolidation. Our response to your request is due on Apr 21, 2018 12:40:47 AM. Unfortunately, it is taking longer than expected to deal with your request. I apologize for this delay but have applied for an extension so we could work further on your request. We hope to be able to send you a response on or before May 18, 2018 12:40:47 AM. Should you have any questions regarding your request, kindly contact me using the reply function on the eFOI portal at https://www.foi.gov.ph/requests/aglzfmVmb2ktcGhyHgsSB0NvbnRlbnQiEURPVHItMTI3ODQ1MTczMzA3DA, for request with ticket number #DOTr-127845173307. Thank you. Respectfully, DOTR-DM DOTR FOI Officer

June 14, 2018 Dear Quennie Daganio, Greetings! Thank you for your request dated Apr 02, 2018 12:40:47 AM under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch. You asked for PUV Modernization Program Industry Consolidation. Your FOI request is approved. Below is the response from the DOTr Road Sector. Rationale behind Industry Consolidation: The existing system in the public transport service, wherein one operator/driver-one franchise, is inefficient. Drivers work long hours (an average of 20 hours per day) only to come home with meager income. And in most cases wherein a driver works for an operator, he/she needs to pay a "boundary" for the day to his/her operator. Add to this the non-existence of benefits such as SSS/GSIS, PhilHealth, PAG-IBIG, unless the operator/driver voluntarily pays for those benefits. As for the operators, they are burdened by the multiple expenses incurred in the operation and maintenance of PUVs. This current system leads to unnecessary competition among drivers on the road. Drivers tend to compete for passengers leading to increased risk on road accidents. Add to that the exhaustion brought by long working hours, drivers become easily irritated, showing unruly attitude while on the road. The low income drivers/operators get tend to have an effect on allocating sufficient resources for maintenance of their units. Thus, the quality of their units are being compromised. The Industry Consolidation Component of the PUVMP aims to address concerns stated above through strategically organizing drivers and operators into a single legal entity. Drivers and operators may opt to organize themselves into a cooperative, or join existing cooperatives. Some of the benefits gained by cooperatives: 1. Fleet Management - Under the OFG, all franchise holders must have a fleet management system. This addresses the long-standing problem in unnecessary passenger competition. Fleets are deployed based on passenger demand. 2. Shared Expenses - Since cooperatives own the franchises, all incurred expenses are shared by every one. Maintenance will not be shouldered by one person anymore. 3. Salary and Benefits for Drivers - Drivers will be deployed based on the fleet management scheme of the cooperative. Thus, they will be payed on the hours they worked, and not based on ridership. In addition, it will be easier to access various benefits such as SSS, PhilHealth, among others. 4. Discounts - Some oil and spare parts companies give group discounts on their products and services. Cooperatives can avail of those group discounts. Thank you. Respectfully, DOTR-DM DOTR FOI Receiving Officer