The Department of Transportation is set to receive P1.5 billon from state-owned Development Bank of the Philippines for the initial implementation of the government’s Public Utility Vehicle Modernization Program.
The two agencies will sign a memorandum of understanding Monday to jumpstart PUVMP, which aims to modernize PUV operations and professionalize the public road transport sector.
PUVMP aims to help the public road transport to transition into a high-quality public transport system with greater capacity, environment-friendly low carbon emissions and efficient operations via modernization of vehicles.
DBP developed the Program Assistance to Support Alternative Driving Approaches or Pasada which will offer responsive and reasonable financing for transport corporations and cooperatives to allow them to acquire new and passenger-safe PUVs.
The bank will also assist the DOTr in the design, development and implementation of an automatic fare collection system for the public road transport sector.
Under the MOU, DBP shall advise and assist DOTr in developing a financing program for the PUVMP. It shall also make available loans to finance the acquisition of new PUVs to qualified prospective borrowers.
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 purchase of public utility jeepneys, buses, mini buses and utility vehicle express units.
Loan proceeds may also be used for the acquisition or construction of support facilities like off-street garage/terminal and purchase of equipment needed for the proper operations and maintenance of the PUVs.