The Japan International Cooperation Agency (JICA) and the Department of Transportation (DOTr) signed the Record of Discussions for the new three-year technical cooperation project, “Capacity Development of Public Utility Vehicles (PUV) in Metro Manila and its Adjoining Areas” (the Project), on July 17, 2024, at the DOTr office in San Juan City, Philippines.
Traffic congestion has long been identified as a very serious social, political, and economic problem in Metro Manila and its surrounding areas, prompting President Marcos, Jr. to convene his first ever town hall meeting last April, as one of the top priority issues of the current administration. NCR traffic ranked the worst globally according to the Traffic Index TomTom in 2023. Moreover, according to a 2017 JICA survey, because of the traffic congestion, transport costs in Metro Manila alone was estimated to be PHP3.5 billion per day in 2017, and was projected to increase to PHP5.4 billion per day by 2035 if no intervention was done.
The dire situation of public transportation spurred the increase in the number of private vehicles on the road, exacerbating urban road congestion. To add, high transport costs have hindered the Philippines’ ability to attract more investments and create job opportunities, ranking the country 6th out of 10 ASEAN countries in terms of foreign direct investment inflows from 2021-2022. Furthermore, the greater risks of road accidents, air pollution, and global warming are increasingly linked to traffic congestion.
In this context, JICA and DOTr share the goal of prompting a modal shift from private to public transportation. For this to be realized, the Project aims to improve the service quality of fixed-route PUVs such as buses, jeepneys, and Utility Van (UV) Express Services, among others. Technical assistance will be provided in effective route planning, development of intermodal transport hubs, and improving convenience of fixed-route PUVs.
JICA Chief Representative SAKAMOTO Takema reiterated JICA’s “full cooperation to realize modernized ‘Japan-quality’ public transportation systems in the Philippines.” With the signing of Record of Discussions for the Project, it is expected that this JICA-DOTr collaboration will be a milestone “not just to build better transport systems, but in paving the way for a brighter and more connected future for our country,” said DOTr Secretary Jaime J. Bautista.
This new collaboration is part of JICA’s Official Development Assistance (ODA) strategic plan to transform public transportation in the Philippines through other hard infrastructure development projects, such as the Metro Manila Subway Project, North-South Commuter Railway Project, Capacity Enhancement of LRT Lines 1 and 2, and Rehabilitation and Maintenance of MRT3.
In parallel, JICA’s ODA support also includes soft-component development, such as the Establishment and Capacity Development of the Philippine Railway Institute, Formulation of 30-Year Railway Master Plan for Greater Capital Region (GCR), and Capacity Enhancement of Transit-Oriented Development (TOD), which also promotes effective coordination between main railway lines and feeder transportation that link station area development with urban development to make the city more vibrant and livable.
Together with the Land Transportation Franchising and Regulatory Board (LTFRB) and the Office for Transportation Cooperatives (OTC) under the DOTr, this Project will further advance the transformation of the public transportation system in the Philippines, in close coordination with the LGUs as well.