Land Transportation Franchising and Regulatory Board (LTFRB) Chairman Martin B. Delgra III has urged scrapping facilities, as well as Treatment, Storage, and Disposal (TSD) facilities, to join the Department of Transportation’s Scrapping Program under the Public Utility Vehicle Modernization Program (PUVMP) as more than 60 facilities qualified to apply for accreditation based on the newly-released Land Transportation Franchising and Regulatory Board (LTFRB) Memorandum Circular (MC) 2021-062.
“Nananawagan ho ang LTFRB sa ating mga scrapping at TSD facilities na suportahan ang programang ito upang makatulong tayong bawasan ang polusyon at emisyon na dulot ng pampublikong transportasyon,” Delgra said, adding that it is high time that we shift our focus to a more environment-friendly public transportation to limit carbon emissions and decrease pollution caused by the industry.
Only 63 scrapping facilities nationwide have qualified for accreditation based on the recommendatory requirements stipulated in the Department Order (DO) No. 2020-021 or the Guidelines for the Scrapping of Old Public Utility Vehicle Units (PUVs), and the evaluation of all existing facilities from the Department of Trade and Industry (DTI) together with the Department of Environment and Natural Resources (DENR). The accreditation is being implemented to ensure that facilities are capable of undertaking a safe and responsible disposal of hazardous wastes to be generated from the process.
To join the program, qualified facilities must apply for accreditation by sending their letter of intent (LOI) and other documentary requirements to the Regional Secretariats led by the Regional Franchising and Regulatory Office (RFRO) in their respective regions. The regional secretariat comprises the LTFRB RFRO and the regional branches of the Land Transportation Office (LTO), Office of Transportation Cooperatives (OTC), as well as representatives from the DTI, and the DENR.
Facilities that pass the evaluation of the Regional Secretariat and the Authorization Committee, composed of officials and technical personnel from the DOTr, the LTFRB, and the LTO, are given a two-year provisional authority (PA) to operate as accredited scrapping facilities under the PUVMP. The two-year PA may be renewed until the establishment of the government’s large-scale vehicle scrappage facility in support of the PUVMP.
Supported by the Department of Science and Technology – Philippine Council for Industry, Energy and Emerging Technology Research and Development (DOST-PCIEERD), through the University of Asia and the Pacific (UA&P), the program also aims to establish linkages and partnerships with vertical industries which may absorb the recyclable scrap parts or components to ensure that these small to medium scale accredited facilities can recoup their capital.
“Patuloy ang pagplano at pagtulong ng DOTr, LTFRB, at LTO, kasama pa ang ibang mga ahensya ng gobyerno para sa mga operator, tsuper, at iba pang mga transport worker na kasapi sa PUVMP. Ang Vehicle Useful Life Program (VULP) ay tiyak na makakatulong sa mga kaibigan nating tsuper pati na rin sa mga maliliit na negosyo. Sama-sama po tayo magtulungan para sa ikabubuti ng transport sector,” Delgra added.
As additional support for the modernization program, LTFRB-registered scrapping and TSD facilities were included in DTI’s list of sectors eligible for tax incentives under the 2020 Investment Priorities Plan (IPP). These incentives include Income Tax Holidays (ITH), enhanced deductions, and duty exemptions for capital equipment, raw materials, and other spare parts and accessories used by scrapping facilities.
