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BusinessMirror April 02, 2023

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ROTARY CLUB OF MANILA JOURNALISM AWARDS

2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion

EJAP JOURNALISM AWARDS

BUSINESS NEWS SOURCE OF THE YEAR

(2017, 2018, 2019, 2020, 2021) DEPARTMENT OF SCIENCE AND TECHNOLOGY

2018 BANTOG MEDIA AWARDS

‘INEVITABLE EXTINCTION’

www.businessmirror.com.ph

A broader look at today’s business

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Sunday, April 2, 2023 Vol. 18 No. 169

P25.00 nationwide | 2 sections 12 pages | 7 DAYS A WEEK

Manila’s colorful jeepneys make way for carbon-free minibuses

ONLY 4 percent of the Philippines’ 158,000 jeepneys have been replaced with a more climate-friendly alternative since the government’s program began in 2017, according to official data. VEEJAY VILLAFRANCA/BLOOMBERG

T

Funding dilemma

By Andreo Calonzo

THE problem for the Marcos administration is finding the money to back up its green plans. State resources remain scarce as the economy recovers from a Covid-induced slowdown. The government currently offers a subsidy of P160,000 per jeepney, and didn’t set aside funding specifically for the jeepney modernization program in this year’s budget. Last year, it allocated P1.8 billion for subsidies and social safety programs for drivers—a fraction of the P64.2 billion that the land transport agency estimates is needed to raise the subsidy per jeepney to P360,000.

Bloomberg News

HEY vanished from Philippine roads in the thick of one of the world’s strictest pandemic lockdowns.

What about the funding, infra? JEEPNEYS are the cheapest mode of transport for many of the Philippines’ 110 million people. VEEJAY VILLAFRANCA/BLOOMBERG

Price too high? A MODERN public utility vehicle serves passengers along Harrison Road in Baguio City, January 2023. MICHAEL EDWARDS | DREAMSTIME.COM

Now, Manila’s colorful jeep­ neys may disappear for good as the government seeks to cut planetwarming emissions. The Southeast Asian nation is pursuing a plan to replace highly polluting jeepney models with modern minibuses that run on cleaner fuels or electricity. But the program is facing pushback from drivers who need

more financial support to make the shift, putting at risk the country’s goal of cutting greenhouse-gas emissions by 75 percent by the end of the decade from 2020 levels. Only 4 percent of the Philippines’ 158,000 jeepneys have been replaced with a more climatefriendly alternative since the government’s program began in 2017, according to official data.

PRESIDENT Ferdinand R. Marcos Jr., who took office in 2022, has given drivers until the end of the year to form or join cooperatives to help them fund the transition or risk losing their permits to operate. The mandate is a major worry for drivers like Roger del Monte, who returned to Manila’s roads last year after the pandemic halted his main source of income for almost two years. Jeepney drivers like him typically earn about P650 ($12) a

day, putting the cost of a modern jeepney—which can go for as much as P2.8 million—far out of reach. “We won’t be able to shoulder the cost,” the 46-year-old said as he waited for passengers to board the rickety jeepney he’s driven for seven years so he could send his two children to school. “We’ll be deep in debt.”

‘King’s’ sunset

CALLED the “king of the road” because of their bulky frames, flashy designs and notoriously aggressive

drivers, jeepneys are the cheapest mode of transport for many of the Philippines’ 110 million people. The 20-seater vehicles, often decorated with graffiti-inspired spray paint, evolved from the army jeeps used during World War II and run on diesel, one of the dirtiest fuels available. A study from De La Salle University in Manila said replacing old models in the capital may reduce carbon monoxide and dangerous particulate matter emissions by 90 percent.

“THIS is torture for drivers,” said Modesto Floranda, who heads Piston, one of the transport groups that organized a strike against the jeepney modernization policy this month. Some 900,000 drivers may lose their jobs if the government removes old jeepneys from roads, he warned. “The government left us on our own to carry out this program.” The government’s end goal is to transition drivers to zero-emission electric vehicles, but the Philippines still lacks sufficient charging infrastructure. It’s more common right now for those able to make the shift to buy Continued on A2

PESO EXCHANGE RATES n US 54.4290 n JAPAN 0.4103 n UK 67.4430 n HK 6.9339 n CHINA 7.9215 n SINGAPORE 41.0011 n AUSTRALIA 36.5327 n EU 59.3657 n KOREA 0.0420 n SAUDI ARABIA 14.5005 Source: BSP (March 31, 2023)


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