Landbank OK’d P2.1B loans for jeepney modernization in 2021

The Land Bank of the Philippines said Wednesday it has approved loans amounting to P2.11 billion last year to aid public transport operators purchase modern public utility jeepneys (PUJs).

In a statement, Landbank said the amount of loans were approved from January to December 2021 and assisted 78 public transport operators purchase 810 brand-new modern PUJs.

The state-owned lender said the loans were approved under its SPEED-PUV or Special Package for Environment-Friendly and Efficiently-Driven Public Utility Vehicles loan program.

The SPEED-PUV loans approved last year were 177% higher than the P1.19-billion in loans approved for the same program in 2020.

In total, Landbank has green-lighted a total of P3.79 billion in loans for the purchase of 1,619 modern jeepneys under the SPEED-PUV program since its launch in 2019.

“The SPEED-PUV Program forms part of Landbank’s continued partnership with the national government to advance the country’s transport system, help protect the environment, and enhance the overall riding experience of the public,” said Landbank president and CEO Cecilia Borromeo.

The SPEED-PUV Program, in partnership with the Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB), offers affordable financing to public transport cooperatives or corporations with DOTr-assigned routes, in shifting to more energy-efficient, environment-friendly, convenient, and safer vehicles in support of the Public Utility Vehicles Modernization Program (PUVMP).

Eligible borrowers for the SPEED PUV Program may loan up to 95% of the PUJ’s total cost at an interest rate of 6% per annum, payable based on cash flow but not to exceed a maximum of seven years.—AOL, GMA News