TechiestuffPH – A destination for technology geeks

All About PUV Modernization Program Guidelines: Advantages & Disadvantages

These guidelines about PUV modernization program will be very useful and essential for us to participate in traffic. Let’s explore the secret behind it with!

Today, as technology is increasingly modern and developed, our lives are improving in many respects. The public transport system is just the same.

Public transport in the Philippines features an eclectic variety of modes, which include buses (city bus, provincial bus, and premium A/C buses); taxis (traditional taxis and the dominant ride-hailing service ‘Grab’), ‘point to point’ minibosses known as ‘AUV’ (Asian Utility Vehicles) or ‘FX Express,’ motorized or pedal-powered tricycles and a limited number of rail lines for those in the metropolitan area of Manila, known as Metro Manila.

In June 2017, the Department of Transportation of the Philippines launched the ‘Public Utility Vehicle Modernization Program (PUVMP)’ as part of the Duterte Administration’s plan to improve the quality and environmental sustainability of public transport operations within the country. It is the reason why it is being encouraged by the government.

PUV Modernization: Latest News In 2021

Under the new rules, utility vehicles will have to meet minimum standards related to safety and emissions. The Philippines has piloted modern, standardized vehicles in some parts of the country, such as in Baguio.

Despite the occasional protests, DOTr affirms that the PUV program still be seriously implemented from 2020 up to now.

PUV Modernization Program Guidelines

LTFRB defines Public Utility Vehicle Modernization Program (PUVMP) as a complete Philippines transport system reform, which includes the following:

Franchise Issuance

Under the new franchising guidelines, the Land Transportation Franchising and Regulatory Board (LTFRB) will publish a call for applications to serve a route and invite applications to operate the route. The number of vehicles required and service standards will be in the call specified. New franchisees will be issued only to a corporation or an operator cooperative. 

 Puv modernization guidelines

This represents a major shift in the franchising approach, enabling the LTFRB to issue a franchise on the route by route basis rather than on the present fragmented individual operator-plus-vehicle basis. An important feature of this change is that this enables fleet management for operations on a particular route, with the operator having the ability to regulate headways and manage vehicle utilization to prevent the present fragmented market structure.


Move from Competition in the Market to Competition for the Market is the new regulatory approach that aims to bring about a move away from on-street Competition.

However, with such a fragmented market structure, most existing operators will be required to consolidate to provide the necessary number of vehicles to serve the route. Indeed, the franchise eligibility criteria now specifically require the applicant to either be a cooperative or a corporation. Consolidation is the core pre-condition to achieve the overall reform objectives and for the financial support mechanism to be sustainable.

Likewise, the merger would help decrease the high number of industry players in the Philippines. Furthermore, this way would be easier for them financially, as well as management-wise


The modernization of the vehicle fleet will follow as a direct result of the new regulatory requirements on vehicle specification. The main vehicle standards and requirements are as follows:

  • Compliance with Euro IV emissions standards as a minimum.
  • Compliance with Philippine National Standards about safety features.
  • Vehicles to be equipped with CCTV, Global Navigation Satellite System (i.e., GPS) and Automated Fare Collection System (AFCS).
  • Easy accessibility for PWDs, seniors, pregnant women, and those with limited mobility.
  • Higher passenger capacity (sitting and standing).

Hence, old PUVs can still have the units approved as they meet the three-year transition period’s above requirements.

Isuzu-CENTRO Philippines
The Isuzu-CENTRO is equipped with a Euro 4-compliant 4JH1-TC engine

Jeepneys are also among the vehicles listed in the modernization program, check out our article on modernization of jeepneys.

Target Dates

Between 2018 and 2019, operators aim to implement the program in the Metros (Manila, Cebu, and Davao) when they are fully ready. Besides, for other highly urbanized cities and the rest of the country, their target year will be between 2019 and 2020.

PUV modernization program: Pros and cons

If looking at many aspects to evaluate, the PUV modernization program has both advantages and disadvantages:

PUV modernization program benefits


Thanks to modern technology, PUV becomes safer and more convenient for passengers, drivers, and pedestrians. For example, when there is CCTV, the rate of theft, fraud on the road is significantly reduced.

public utility vehicles

With the PUV program, drivers will be trained in some more professional driving skills. They are required to know the Law on Road Traffic. Road traffic accidents can therefore be minimized or prevented.

Also, PUVs require a set of speed limiters and the assignment of enforcers to check those who exceed the limit. Hence, the safety of road users is better ensured.


We have a lot of compliments for PUVs because they are designed very Convenience-wise, modernized. They have ample space and can accommodate many passengers. Unlike other vehicles with only one back door, PUVs have a side door, making it easier for passengers to travel. 

public transportation in the philippines
Unlike other vehicles with only one back door, PUVs have a side door, making it easier for passengers to travel

Better Income for Drivers

The program supports the convenience of passenger travel and provides a stable source of income for the driver.

Pollution Reduction

Air pollution is the leading cause of air pollution from vehicles. Fortunately, PUVs are very eco-friendly based on what they release and the type of fuel they require. Apart from this, they are also energy-saving.

PUV modernization program disadvantages

One thing that hinders Operators and drivers is that the cost of PUVs is very high. Although the Philippine Land Bank provides additional loans and support, the car price Philippines 2021-2022 is beyond their financial capacity. It leads to private companies stopping doing business due to a lack of funding as fares can still rise.

PUV modernization program disadvantages
Landbank provides loans to help operators with the acquisition

Through these guidelines, we hope you have a better understanding of the PUV modernization program why it is being encouraged by the government. Visit for more latest stories.

Leave a Reply

Your email address will not be published. Required fields are marked *