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RECYCLING INDEX FOR END OF LIFE JEEPNEYS 

 

Executive Summary 

Last 2017, the Philippine Government launched the Public Utility Vehicle Modernization Program (PUVMP) mandating all end-of-life vehicle (ELV) Jeepneys (at least 15 years old) to comply with new design standards by June 2020 in order to make public transport safer and more comfortable, reduce air pollution via greener engines, improve franchise system and move commuters more efficiently with route rationalization. The program will implement a transition from the ELV-Jeepneys to modern airconditioned public utility vehicles (PUVs) equipped with several amenities such as CCTV camera, free Wi-Fi onboard, automatic fare collection system, and PWD-friendly designs. In order to assist the government in the full implementation of the PUVMP, this research study was conducted in support of the proposed sustainable scrappage program that will handle the dismantling of the ELV-Jeepneys.  The research study characterized a typical ELV-Jeepney, determined its recyclability and recoverability indices, estimated its relative economic worth as basis for the government’s financial assistance schemes, and initiated a preliminary feasibility study for a possible scrappage facility that will handle the ELV-Jeepneys within and around Greater Metro Manila area. Jobs and other business opportunities are expected to arise with the installation of a scrappage facility. 

 

The Problem 

 

The research project objectives are: 

  1. Determine the recycling and recyclability index of Jeepneys according to ISO 22628 

  1. Estimate the relative economic value of ELV Jeepney 

  1. Initiate feasibility study for a Scrappage Facility 

 

The Solution 

 

After dismantling, characterization and weighing, the computed recyclability index for and ELV  jeepney is 92.50%. While the recoverability index is 93.48%. The high value is brought about because the major component of the jeepney is metal which is highly recyclable and recoverable. The scrap value of an ELV jeepney is estimated at Php 28,000-Php 58,000. The amount is highly dependent on the condition of the jeepney’s engine. A major part of the amount is from the engine. With the PUV modernization program, the transfer of the use of the ELV jeepneys to the provinces is not recommended. Doing that will only transfer the health and environment hazards of the said units. The engines of the ELV jeepneys can be used for agricultural purposes and other small-powered machineries such as generators and the likes. 

 

The initial feasibility study recommends the following: 

The dismantling facility is a Government-Owned corporation (GOCC). GOCC refers to any agency organized as a stock or nonstock corporation, vested with functions relating to public needs whether governmental or proprietary in nature, and owned by the Government of the Republic of the Philippines directly or through its instrumentalities either wholly or, where applicable as in the case of stock corporations, to the extent of at least a majority of its outstanding capital stock. 

 

      The land found in Valenzuela is a government owned land by the city of Valenzuela. This is located within Bagbaguin road, City of Valenzuela. The total land mass for this is 16,958.00 square meters which exceeds 7,489 square meters. It costs P38,155,500.00 for the whole lot.  

The total project cost is equal to PhP 523,525,166.80, observing a contingency of 5%. The total project cost serves as the initial amount required in order to have an operating facility. To breakdown the total cost, the capital costs PhP 39,478,808.50 while annual expenditure costs PhP 483,945,358.30. 

Based on the results, the payback period is within ten years of the company’s operations 

 

Competitive Advantage 

No studies have been done on the recyclability and recoverability index of a jeepney. The research will be beneficial in policy making with regards to handling of the scrap materials that will be obtained from dismantling it. Thus possibly supporting industries on material recycling facilities, re-engineering firms as well as agricultural sector.  

 

Target Market 

Target market for the research are recycling facilities, agricultural sector and re-engineering firms. In fact initial meetings with local government units have been done. 

 

 

Contact 

Project Leader: noemi.torre@uap.asia