Cash aid for jeepneys starts this week – LTFRB

MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) has issued guidelines in extending monthly financial assistance of P20,000 to transport service entities (TSEs) that are struggling to pay the monthly amortization for modern jeepneys.

“The President has directed the Department of Transportation to extend assistance to cooperatives and corporations that have joined the jeepney modernization program,” DOTr Secretary Giovanni Lopez said.

“We must ensure that they continue their operations to serve commuters. They are the lifeblood of the transport sector,” he added.

Acting LTFRB Chairman Greg Pua Jr. said the cash aid program would start this week.

The Public Transportation Modernization Program is designed to modernize and make the country’s public transportation system at par with other countries in terms of services and environment-friendly operations. 

A large number of those in the transport sector supported the initiative and acquired modern jeepneys through a loan program that is subsidized by the national government.

But the Middle East war and the series of bad weather conditions made it difficult for jeepney operators to meet their monthly amortizations.

“The LTFRB recognizes the need to provide financial assistance to qualified TSEs amid rising fuel prices and other operational expenses that affect public transport viability, and to help mitigate these costs,” Pua said.

He said the memorandum circular aims to standardize the administrative and operational framework for the implementation of the monthly amortization assistance to transport entities.

The financial support covers modern jeepneys and UV Express nationwide as well as modern buses operating in Metro Manila.

The assistance will cover up to three months of vehicle amortization or operational costs.

A monthly subsidy of P20,000 per jeepney per month will be granted to eligible operators with existing arrears, outstanding loan obligations or those facing the risk of default.

The fund may be utilized to offset daily operational expenses, such as but not limited to fuel, maintenance and spare parts, garage as well as terminal rental and utilities.