By Junex Doronio
MANILA — An economist aired apprehension on Tuesday that the consolidation of public utility vehicle franchises under cooperatives and corporations could lead to higher fares and fewer options for commuters.
Noting the country’s experience when it privatized water and power, IBON Foundation Executive Director Sonny Africa said that fares will likely rise in coming years.
“Fares will be kept low at maybe P15-P20 — P25 — for the first 3 to 5 years. But we fully expect that in 5 years or more, it will hit about P45-P50,” Africa predicted in an interview with ANC’s “Headstart” television program.
He noted that the transport corporations and cooperatives will need to make enough money to pay off loans for the modern jeepney units and to pay for garages and other expenses under the government’s PUV Modernization Program.
Africa also cited the “profit motive” in which the operators will likely focus on the routes where they will make the most money.
“There is also the increased profit motive, the profit premium being added to fares on top of that,” the IBON think-tank said.
Meanwhile, transport groups PISTON and Manibela oppose the requirement to consolidate franchises, saying drivers would be left with nothing if a cooperative fails or is mismanaged.
They also pointed out that the modern jeepney with Euro 4-compliant engine is “too expensive” at P2.5 million per unit for the ordinary jeepney driver, who also has to deal with soaring gas prices.
(IAmigo/MNM)