DBP extends P462-M financing for PUV modernization

State-run Development Bank of the Philippines (DBP) has released nearly P462 million in assistance to transport cooperatives and operators for the purchase of modern and environment-friendly jeepneys, a top official said.

According to DBP president and chief executive officer Emmanuel Herbosa, nine transport cooperatives and two corporations have so far received funding support under the bank’s Program Assistance to Support Alternative Driving Approaches (PASADA) financing facility.

The financing assistance allows them to acquire modern, efficient and green jeepneys in line with the government’s Public Utility Vehicle Modernization Program (PUVMP).

“DBP remains a reliable partner of the transportation sector in providing opportunities for drivers and operators to improve the current situation of our roads today,” Herbosa said.

The DBP PASADA program is a special loan financing facility launched in September 2017 that caters to corporations and cooperatives participating in the pilot phase of the PUVMP.

The facility covers qualified transport cooperatives and corporations that are registered with the Office of Transport Cooperatives (OTC) and have been qualified to receive franchises by the Land Transportation Franchising and Regulatory Board (LTFRB) under the Omnibus Franchising Guidelines of the PUVMP.

Herbosa said PASADA promotes the “fleet management” concept, which organizes public transport services “to provide a steady source of livelihood to drivers, while ensuring a reliable, efficient, and safe means of transportation for the public.”

Meanwhile, Herbosa said DBP recently conducted a business forum, which was attended by over 167 participants from transport cooperatives in the National Capital Region, Bulacan, Rizal province, Cavite, Batangas, Quezon, and Laguna, as well as PUV suppliers, manufacturers, and automated fare collection system providers.

DBP is the eight largest bank in the country with assets totaling P635.6 billion as of end-March this year.

It provides loans to strategic sectors such as infrastructure and logistics, small and medium enterprises, social services and community development, and the environment.