DBP allots P1.5 billion to finance PUV modernization

THE Development Bank of the Philippines (DBP) is set to provide a P1.5-billion facility for the initial phase of the implementation of the Public Utility Vehicle Modernization Program (PUVMP).

The Department of Transportation ( DoTr) said in a statement that the agency and the DBP will sign tomorrow a Memorandum of Understanding (MoU) to facilitate PUV modernization. Under the MoU, the DBP is to advise and assist the DoTr in developing a financing scheme for the program, and make available loans to finance the acquisition of new PUVs to qualified prospective borrowers.

The DoTr launched in June the framework that will kick start the implementation of PUV modernization in order to improve the quality of the mass transport sector.

Included in the program are the Omnibus Franchising Guidelines, which will require local government units to develop a Local Transport Plan and a Transport Route Plan; and the gradual phasing out of traditional jeepneys, as well as jeepneys aged 15 years and older, for replacement with environmentfriendly vehicles equipped with more eff icient engines.

To assist the government, DBP developed the Program Assistance to Support Alternative Driving Approaches ( PASADA) which will offer financing for transport corporations and cooperatives to allow them to acquire new and passenger-safe PUVs. It is estimated that a modern jeepney unit will cost P1.4 million to P1.6 million.

The DBP will also assist the DoTr in the design, development and implementation of an automatic fare collection system for the public road transport sector. —