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  • ‘Katas ng VAT’ funds eyed for
    jeepney engines’ conversion
     
    By Jojo Perez
    Correspondent
     

    DESPITE a small decrease in fuel cost, various transport groups under the umbrella organization of United Transport Koalisyon (1-Utak) have lined up to avail themselves of the funds from “Katas ng VAT” that was announced by President Arroyo in her State of the Nation Address for the installation of engines using liquefied petroleum (LPG) gas in all passenger jeepneys.

    Lawyer Vigor Mendoza, 1-Utak chairman, said a total of 49,920 jeepney operators have signified their interest of shifting to LPG engines from diesel engines.

    Mendoza said that transport groups under the coalition have decided to purchase their engines from one supplier to ensure after-sales service, spare parts availability and implementation of warranties. 

    He said that the operators are looking for a supplier who can commit to the establishment of an engine assembly and manufacturing facility in the Philippines, as well as the creation of some 800 installation and service centers nationwide.

    “This will not only ensure prompt after-sales support, but also provide approximately 32,000 alternative job opportunities to transport workers, assuming that 40 workers would be employed per service center,” Mendoza added.

    Aside also from ensuring cleaner air on LPG engines, it would also result in decongesting the streets of urban centers, specifically in Metro Manila, where drivers and operators of old jeepneys, instead of changing their engines, may just opt to retire their jeepneys and just avail themselves of the alternative employment opportunities in service centers and other livelihood projects.

    He explained that although government funding given to public utility vehicles is not that much, the impact of the funds on the transport industry and the public as a whole will be magnified fivefold because of the additional employment opportunities that the project will generate, as well as the lower fares that operators and drivers may now be able to offer as LPG is P20/liter cheaper that diesel.

    Mendoza is optimistic the government will give the transport sector easy payment terms and easy processing requirements for the loans to be given.

    He stressed that funds allotted for the conversion project are not subsidies because these would be paid back. 

    “This can be more likened to pump-priming to create more jobs and increase domestic demand for goods and services to sustain development momentum even during these difficult times, while helping the environment and increasing the income of transport workers.”

    “The seeds that will be planted today will be enjoyed years from now. With the shift to cleaner and cheaper fuel, the Philippines will join the ranks of other Asian countries that have early on made the shift and are now enjoying the benefits from such decision, like Hong Kong, Singapore and Thailand,” Mendoza added.

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