LTFRB clarifies: Traditional jeeps can still operate if they comply with June 30 consolidation deadline

Metro Manila (CNN Philippines, February 24) — The Land Transportation Franchising and Regulatory Board (LTFRB) on Friday clarified that traditional jeepneys will still be allowed to ply the road if they are able to comply with the modernization requirement to consolidate until June 30.

“Ang sinasabi lang ho ng circular (What the circular is saying), you first form a juridical entity or a consolidated entity then you will continue to operate even if your unit is still traditional or the old unit,” LTFRB Technical Division head Joel Bolano told CNN Philippines’ The Source.

He was referring to Memorandum Circular No. 2023-013 that extended the previous March deadline for traditional jeepney franchise holders to consolidate or join existing cooperatives.

“What is important is the individual operator will be consolidated into a juridical or consolidated entity at least before June 30,” Bolano added.

Those who are part of a consolidated entity will have their provisional authority extended until Dec. 31, LTFRB said.

Piston national president Mody Floranda on Thursday said the deadline given to traditional jeepney franchise holders to comply is too early given the cost of a modern jeepney that may burden operators. 

While the LTFRB remains open for dialogues, Bolano said the memorandum circular will be followed for now. The government also has subsidies for those who will be purchasing units of modern jeepneys, he added.

Prior to the June 30 deadline, Bolano said the LTFRB will issue new guidelines to set the next steps for the modernization program. The compliance of operators will also determine what will happen after Dec. 31.

READ: LTFRB rules out transportation crisis after PUV consolidation deadline

Piston also raised the concern on the move possibly wiping out the livelihood of drivers and operators, as well as the local manufacturers of jeepneys.

Bolano noted that the consolidation does not automatically require the purchase of modern units.

He also said local jeep producers are a possible source of new units as long as they are able to comply with the standards issued by the government.

So far, 61% of the 158,000 target units nationwide have been consolidated, Bolano said.