The Development Bank of the Philippines (DBP) will provide a P1.5 billion finance facility to fund the initial implementation of the Department of Transportation’s (DOTr) Public Utility Vehicle Modernization Program (PUVMP).
Transportation Secretary Arthur Tugade and DBP chairman Alberto Romulo recently signed a memorandum of understanding (MOU) to jumpstart the realization of the PUVMP, which not only aims to modernize PUV operations in the country but also to professionalize the public road transport sector.
To assist the government in implementing the PUVMP, the DBP has developed the Program Assistance to Support Alternative Driving Approaches (PASADA) to offer responsive and reasonable financing to transport corporations and cooperatives so they can acquire new and passenger-safe PUVs.
The DBP will also assist DOTr in designing, developing, and implementing an automatic fare collection system for the public road transport sector.
Under the MOU, the DBP will advise and assist DOTr in developing a financing program for the PUVMP. It will also make available to qualified prospective borrowers loans to finance the purchase of new PUVs.
Transport cooperatives and corporations registered with the Office of the Transport Cooperatives can avail of the DBP PASADA and participate in the pilot phase of the program, which will finance the purchase of public utility jeepneys, buses, mini buses, and utility vehicle express units.
The loan may also be used to acquire, construct, or support facilities like off-street garages and terminals, and to buy equipment needed to operate and maintain PUVs properly.
Last April 30, DOTr also signed an MOU with the Land Bank of the Philippines to set up a P1 billion financing facility for PUJs via the Special Environment-Friendly and Efficiently Driven Jeepney Program.
DOTr is eyeing signing similar MOUs with different private financing institutions in the upcoming months, geared towards further pushing for the PUVMP.
DOTr launched the PUVMP to help the public road transport sector transition to a high-quality public transport system of greater capacity, with low carbon emissions and efficient operations, by modernizing public vehicles.
The transport department is looking to complete the modernization program within the next two or three years.
