CEBU, Philippines - In a bid to modernize the country’s public transport system, the government will offer loans to public utility jeepney (PUJ) operators and drivers so they could purchase new units.
But Cebu’s militant transport group, Pinagkaisang Samahan ng mga Tsuper at Operators Nationwide (PISTON), opposed the move, saying it’s anti-poor.
PISTON-Cebu coordinator Greg Perez said it is just a ploy of the Department of Transportation Secretary Arthur Tugade and will actually just dupe small-time jeepney operators.
"Kana ilang gihimo nga kunuhay tabangan nila ang mga operators nga maka-loan, pagduot kana sa mga small-time operators kay unsa may ikabayad sa loan? Gusto lang gyud aning Tugade nga ma-monopolize ang jeepney sector,” he said.
The government assured that it will help operators and drivers of PUJs in purchasing modern, environment-friendly units in line with the public utility vehicle (PUV) modernization program.
Transport and finance officials have already signed a memorandum of understanding (MOU) on financing scheme.
The MOU was signed by Tugade, Land Transportation Franchising and Regulatory Board Chairman (LTFRB) Martin Delgra III, Finance Secretary Carlos Dominguez III, and Land Bank of the Philippines President Alex Buenaventura in a ceremony in Davao City on Sunday, April 30.
The MOU sets up a loan program under the Land Bank to fund the purchase of operators and drivers of modernized PUJs to replace old and dilapidated units.
Under the program, operators or drivers can loan e-jeepneys worth at least P1.4 million to P1.6 million with a six percent annual interest rate.
But Perez, who called the agreement “unfounded,” said the government should expect more transport protests amid the latter’s plan to phase out jeepneys that are at least 15 years old.
He said the plan is grossly disadvantageous to the poor operators who cannot afford to avail of the loan.
For his part, Ryan Yu, general manager of the Cebu Integrated Transport Service Cooperative (Citrasco), said the loan guidelines should be modified for the regional transport sectors as the situation in Cebu is far different from Manila.
Under the said scheme, the operator or borrower would pay P800 per day through cash deposit machines installed by Land Bank, “just like daily boundary,” over the seven-year payment period.
Yu said this is unreasonable for Cebu operators, citing that jeepney rental here would only cost at least P350 per day.
"Maglisod ta ana diri sa Cebu kay ang atong rental sa jeepneys diri depende sa ruta, ranging from P350 to P800 per day. So, kun operator ka og jeepney unya P350 ra ang abang sa imong unit, unsaon nimo pagbayad sa daily loan amortization?” Yu asked.
The loan should not have stringent rules as it will defeat its purpose and objective in helping the jeepney operators and will discourage the beneficiaries, he added.
"Kun ang loan amortization is too high, many operators cannot afford and this loan program will just turn out to be useless as small-time jeepney operators cannot afford to pay, despite assistance from the government," Yu said.
For PISTON-Cebu, this loan scheme is still anti-poor as it deprives jeepney drivers of their livelihood.
LTFRB-7 Director Ahmed Cuizon clarified that the loan program is the fulfillment of the government's vow to empower small-time PUJ operators to join and compete in the public transport modernization program.
"The lending facility will help ensure that nobody gets left behind, so that everyone will have a chance to keep in step with progress," he said.
The financing program will be available after the DOTr and LTFRB approve the route plans submitted by the LGUs for the Omnibus Franchising Guidelines to be released this month.
The borrower would have options whether to loan an air-conditioned electric jeepney, or Euro-4 engine powered jeepney, or a hybrid unit.
With the use of e-jeeps, officials hope that drivers can earn up to P33,000 a month (or P1,100 per day for 30 days), from a measly P600 they make a day currently. Land Bank will provide loans for 650 e-jeepneys in National Capital Region as the pilot area. (FREEMAN)