Baguio to pilot World Bank-backed jeepney modernization model

BAGUIO CITY, Philippines — The World Bank Group (WBG) on Friday proposed a new jeepney modernization model that would let local governments contract transport groups for public service, shifting the financial risks of vehicle upgrades away from drivers and operators.

Speaking at a public transport modernization convention, WBG senior transport specialist Bowen Wang said the model would allow traditional jeepneys to continue operating during the transition to modern, electric-powered vehicles.

Under the proposal, local governments or private leasing firms would finance vehicle purchases and provide spare parts. Transport groups could acquire the units through lease-to-own arrangements, with payments covered by long-term service contracts with the city.

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READ: Piston protests World Bank-led transport conference in Baguio

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The model would also allow cities to manage routes and compensate drivers and other transport workers based on performance, Wang said.

He cited WBG estimates showing that about 60 percent of loans obtained by transport cooperatives through special lending facilities had gone into default, totaling P5.22 billion.

Before the convention at Venus Parkview Hotel, members of militant transport group Piston staged a rally against the modernization program, carrying placards that read, “No to World Bank Jeepney Phaseout.”

Baguio will pilot the proposed model, with official development assistance from WBG banks supporting its first six years. The city will need to develop its own funding sources to sustain the program by the 12th year.

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Mayor Benjamin Magalong told the Inquirer that the project would be developed for implementation within six months, following talks with Transportation Secretary Giovanni Lopez.

However, the model would not address the payment difficulties of transport groups that had already borrowed money to buy modern jeepneys, Magalong said. The issue must be raised with the Department of Transportation, he added. —With a report from Kimberlie Quitasol