Banks ready to extend financing for PUV modernization program

MANILA, Philippines — Private banks have expressed interest in financing the country’s shift toward the utilization of modern public utility vehicles (PUV), according to the Department of Transportation (DOTr).

The DOTr said Undersecretary Mark De Leon and Land Transportation and Regulatory Board (LTFRB) chairman Martin Delgra III met on Monday with representatives of private banks keen on providing support and financial packages for the government’s PUV modernization program.

“This shows the confidence of the private sector with the programs and initiatives of DOTr, headed by Secretary Arthur Tugade, and their belief in this administration of President Duterte,” De Leon said.

Under the PUV modernization program, the government aims to replace all PUVs aged 15 years or older with modern PUVs that are powered by either brand-new Euro 4 compliant diesel engines or electric motors.

The program is part of efforts to provide a safer transport system for commuters, while mitigating the effects of climate change.

As of Dec. 3 last year, the DOTr said 116 routes have already been identified under the initial implementation of the program, with 654 units for 25 routes granted provisional authorities and certificates of public convenience.

Transport groups have been opposing the modernization program but Transportation Secretary Arthur Tugade has maintained that the program is non-negotiable.

“We will push through with our modernization program. We will not anymore allow accident prone vehicles,” Tugade earlier said, noting that among the non-negotiable aspects of the program are the specific details on the vehicles such as its design, WiFi access, security measures, and amenities for provincial and regional buses.

Delgra, for his part, also assured that there is no stopping the program no matter the challenges.

The DOTr and LTFRB said there are financing schemes available to operators and drivers to help them pay for the cost of the modern jeepneys.

The financing rates, the DOTr said, features an easy downpayment, very low interest rates, payability in seven years, and an P80,000 government subsidy.