DBP to provide funding for DOTr’s PUV modernization

The Development Bank of the Philippines (DBP) is funding the Department of Transportation (DOTr)'s Public Utility Vehicle Modernization Program (PUVMP) at the cost of R1.5 billion.

DBP Chairman Alberto Romulo and Transportation Secretary Arthur Tugade signed on Monday signed a Memorandum of Understanding (MOU) to jumpstart the PUVMP geared at professionalizing the public transport sector.

To assist the government in implementing the PUVMP, DBP developed the Program Assistance to Support Alternative Driving Approaches (PASADA) financing transport corporations and cooperatives acquiring new, passengersafe PUVs.

The bank shall also assist the DOTr in designing and implementing an automatic fare collection system (AFCS) for the public road transport sector.

Under the MOU, the DBP shall advise and assist the DOTr in developing a financing program for the PUVMP. It shall also make loans available to finance the acquisition of new PUVs.

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 to finance their purchase of public utility jeepneys, buses, mini buses and utility vehicle express units.

They can also take out loans to acquire or build support facilities like offstreet garage/terminal or buy equipment needed for operating and maintaining PUVs.

The DOTr launched the PUVMP to help the public transport sector modernize and transform itself into a high-quality system with greater capacity, environment-friendly, with low carbon emissions and efficient operations. (EVA)