DBP to provide P1.5B for PUV modernization plan's initial implementation

The Development Bank of the Philippines (DBP) on Sunday said it will provide P1.5 billion for the initial implementation of the government's Public Utility Vehicle Modernization Program.

The DBP said in a statement that Transportation Secretary Arthur Tugade and its chairman, Alberto Romulo, will sign a memorandum of understanding (MOU) on Monday for the P1.5 billion PUV modernization fund.

it said drivers who will be affected by the modernization program can avail of its Program Assistance to Support Alernative Driving Approaches (PASADA).

It said PADA will offer "responsive and reasonable financing for transport corporations and cooperatives to allow them to acquire new and passenger safe PUVs."

Transport group Piston had said that the livelihood of at least 240,000 jeepney drivers will be affected by the modernization program.

Under the modernization program, jeepney operators will be required to own at least 20 Euro 4 compliant e-jeepneys and market capitalization of at least P7 million.

The program also includes the phaseout of PUVs that are 15 years and older and replaced with environment friendly and fuel-efficient units.

The DBP said that under the MOU, it will advise the Transportation department in developing a financing program of the modernization program.

"It shall also make available loans to finance the acquisition of new PUVs to qualified prospective borrowers," the DBP said.

It said that transport cooperatives and corporations that are registered with the Office of the Transport Cooperatives can avail of the PASADA and participate in the pilot phase of the program.

Aside from jeepneys, the package include the purchase of new buses, mini buses and utility vehicle express units.

"Loan proceeds may also be used for the acquisition or construction or support facilities like off-street garage/terminal and purchase of equipment needed for the proper operations and maintenance of the PUVs," it added. —ALG, GMA News