DoTR, Land Bank line up P1B loan package for PUJ modernization

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The Department of Transportation (DOTr) and Land Bank of the Philippines (LBP) have signed a memorandum of understanding (MOU) to set up a P1-billion financing program for the modernization of jeepneys in the Philippines.

LBP, through its Special Environment-Friendly and Efficiently-Driven (SPEED) Jeepney program, will institute a loan facility that will provide credit to drivers and operators for the replacement of their public utility jeepneys (PUJs) in accordance with the government’s Public Utility Vehicle (PUV) Modernization Program.

The MOU was signed in Davao City on April 30 by Transportation Secretary Arthur Tugade and Finance Secretary Carlos Dominguez III, who is chairman of LBP. Witnessing the signing were Land Transportation Franchising and Regulatory Board (LTFRB) chairman Martin Delgra III and LBP president Alex Buenaventura.

According to Buenaventura, LBP has put up a P1 billion credit facility for the pilot project to replace an initial 650 PUJs in Metro Manila at P1.4 million to P1.6 million per unit. The loan is for the purchase of a jeepney with a minimum requirement of Euro-4 engine.

“There will be political resistance, no doubt, from those who do not wish change. We will have to conduct effective public diplomacy to raise the acceptance of this program. We must convince the jeepney drivers and operators that this is the way to go. They must understand the financing package will make the shift affordable,” Dominguez said.

“The lending packages are very generous. [They offer] low equity, longer payment period, and very low interest rates,” Delgra said.

He added that the modernization program is an effort to overhaul the transportation system of the country, from the quality of units to the quality of drivers.

“We are looking at public transportation that is adequate, safe, and comfortable. We’re looking at a travel time that is predictable. We’re looking also at PUV drivers that are disciplined, competent, and mindful of the common good,” Delgra said.

Dominguez appealed to drivers, operators, and the commuting public to give the program a chance.

“We must convince jeepney drivers and operators that this is the way to go. They must understand that the financing package will make the shift affordable,” Domiguez said.

“The public must understand that our inefficient dinosaur, the PUJ, must now be relegated to the museum. It is dirty, inefficient, unhealthy and unsafe for commuters. It is time we bring our public transport to the 21st century,” the finance chief added.

“It will be an important contribution to fighting climate change. It will help decongest our exhausted roads. It will make commuting a more pleasant activity for our bedraggled commuters,” he pointed out.

LTFRB likewise assured drivers and operators that there is nothing to worry about.

“Do not worry. Trust us that what we are doing is for the development of our country, which is also for your welfare and for the upliftment of the socio-economic status of your respective families,” LTFRB board member Aileen Lizada said.

There are over 220,000 registered PUJs nationwide, of which 90% are at least 15 years old. DOTr noted that these old PUJs are the biggest source of CO2 emission, resulting in 5,000 deaths annually.

More specific details of the financing program are already being worked out by DOTr and LBP, and will soon be made available to the public.