ABSTRACT
This mixed-methods study examined the relationship between the implementation of the Public Utility Vehicle Modernization Program (PUVMP) and transport cooperative compliance in Iloilo City, Philippines. Findings from seven cooperative leaders revealed a “High Level of Implementation” and “High to Very High Compliance”; however, compliance was largely procedural-driven by regulatory pressure and survival rather than genuine belief in the program. While documentary and technological requirements were successfully met, the impact on livelihoods and internal governance remained moderate, indicating symbolic rather than substantive compliance. Although Chi-square tests showed no significant demographic differences or a statistical correlation between implementation and compliance, pattern analysis suggests that perceived support and meaningful engagement align with deeper levels of adherence. Stakeholders recommended the adoption of service contracting, fuel assistance, institutional capacity-building, and inclusive route planning. The study affirmed the principle that compliance follows capacity—not coercion.
Keywords: PUVMP, Policy Implementation, Implementation, Compliance, Transport Cooperatives
INTRODUCTION
Background of the Study
Public transportation serves as the lifeblood of urban centers, providing mobility, economic opportunity, and social connectivity for millions. In the Philippines, however, the sector has long grappled with systemic challenges—aging fleets, fragmented operations, and chronic traffic congestion—that undermine both urban mobility and environmental sustainability. As noted by the Asian Development Bank (2018) and the Department of Transportation (2017), public transportation reform has long been a critical agenda in the Philippines, to address aging fleets, fragmented operations, and traffic congestion that undermine urban mobility and environmental sustainability.
This persistent need for transformation sets the stage for ambitious policy interventions like the Public Utility Vehicle Modernization Program (PUVMP), which seeks not only to upgrade vehicles but also to restructure the very foundations of public transport governance and service delivery.
In response, the Department of Transportation (DOTr) launched the Public Utility Vehicle Modernization Program (PUVMP) in 2017, a transformative policy aimed at replacing outdated jeepneys and other public utility vehicles with safer, more efficient, and environmentally friendly alternatives (DOTr, 2017; Land Transportation Franchising and Regulatory Board [LTFRB], 2020). Central to this reform is the mandate for operators to consolidate into transport cooperatives or corporations, a structural shift intended to professionalize the sector and enable access to government financing and route rationalization (DOTr, 2017; LTFRB, 2020).
The ideal situation envisions a modernized, organized, and equitable public transport system where cooperatives operate efficiently, drivers enjoy social protection, and commuters benefit from reliable, low-emission services (DOTr, 2017; World Bank, 2020). However, the current reality reveals significant implementation challenges. Nationwide, compliance with PUVMP requirements remains uneven (ADB, 2021). Many cooperatives exist only on paper, lacking operational capacity, internal cohesion, or financial viability (ADB, 2021; Rutaquio & Santos, 2022). In regions outside Metro Manila—such as Western Visayas—implementation intensity varies widely due to differences in local government support, stakeholder engagement, and resource allocation (LTFRB, 2021).
Iloilo City, a growing urban center and regional hub, has been an active site of PUVMP rollout since 2019 (City Government of Iloilo, 2021). While the city government has expressed support and facilitated dialogues, numerous transport cooperatives continue to struggle with registration, vehicle procurement, and route consolidation (LTFRB, 2021).
Preliminary reports suggest that compliance is often driven by regulatory pressure rather than genuine institutional readiness, raising questions about the sustainability of the modernization effort (ADB, 2021; Rutaquio & Santos, 2022).
Despite growing scholarly attention to the PUVMP, a critical research gap persists: there is limited empirical investigation into how the manner and intensity of program implementation at the local level influence the actual compliance behavior of mandated cooperatives. Most studies focus on national policy design, socioeconomic impacts, or driver resistance—but few examine the organizational response of cooperatives in relation to specific dimensions of implementation such as enforcement, support mechanisms, and communication strategies (World Bank, 2020; Rutaquio & Santos, 2022). Moreover, no known study has systematically analyzed this relationship within the context of Iloilo, a representative secondary city where national mandates intersect with distinct local governance dynamics.
This study sought to bridge that gap by evaluating the link between PUVMP roll-out implementation and cooperative compliance in Iloilo City, thereby contributing actionable insights for policymakers, local governments, and cooperative developers committed to equitable and effective transport reform.
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