DBP allots P1.5 B for PUVMP

State-run Development Bank of the Philippines (DBP) is providing a P1.5 billion facility for the initial implementation of the Public Utility Vehicle Modernization Program (PUVMP) of the Department of Transportation (DOTr).

In a statement, the DOTr said a memorandum of understanding (MOU) would be signed by Transportation Secretary Arthur Tugade with DBP chairman Alberto Romulo today for the PUVMP which seeks to modernize PUV operations, as well as profession- alize the public road transport sector.

Under the MOU, the DBP shall assist the DOTr through a financing program for the PUVMP.

The DBP has developed the Program Assistance to Support Alternative Driving Approaches (PASADA) to extend loans for transport corporations and cooperatives for the acquisition of new PUVs.

The DBP will also work with the DOTr in the design, development and implementation of an automatic fare collection system for public road transport.

Transport cooperatives and corporations registered with the Office of the Transport Cooperatives can avail of assistance under the DBP PASADA and participate in the pilot phase of the program.

Aside from purchase of public utility jeepneys, buses, mini buses, and utility vehicle express units, the loan may also be used to fund acquisition or construction of support facilities like off-street garage or terminal.

Loan proceeds could also be used for the purchase of equipment necessary for the operations and maintenance of PUVs.

Earlier, the DOTr, Land Transportation Franchising and Regulatory Board, Department of Finance and Land Bank of the Philippines signed an MOU for a financing program for jeepney modernization.

Under the financing program with Landbank, a loan facility will be made available to individual drivers and operators to allow them to replace old jeepney units in line with the PUVMP.

The loan facility has an initial budget of P1 billion for 650 public utility jeepney operators or drivers in Metro Manila.