DOTr increases loan subsidy for modern PUV units to P280K

The Department of Transportation (DOTr) has increased the loan subsidy for the purchase of modern public utility vehicle units of consolidated operators under the government’s PUV Modernization Program.

Under the DOTr’s Department Order No. 2023-018, signed by Transportation Secretary Jaime Bautista on August 31, 2023, the government increased the subsidy to P280,000 per unit for PUV operators who purchase units under Class 2, 3, 4 classifications, from the current P160,000 per unit.

Meanwhile, those who purchase Class 1 PUV units will be given P210,000.00 per unit.

“The approval of the additional equity subsidy is aimed at giving each consolidated entity sufficient capacity to purchase modern PUV units while also further reducing the cost of their monthly amortization,” according to the DOTr.

“Moreover, it also aims to strengthen the financial viability of the program for drivers and operators who want to be part of the PUVMP,” it said.

The loan subsidy is provided under the Special Loan Facilities of the Program Assistance to Support Alternative Driving Approaches (PASADA) of the Development Bank of the Philippines (DBP) and Special Package for Environment-Friendly and Efficiently-Driven Public Utility Vehicles (SPEED PUV) of the Landbank of the Philippines (LBP).

The DO has a retroactive application, which means that existing borrowers under PASADA and SPEED PUV, since July 31, 2018, will benefit from the increased subsidy.

“The P160,000 subsidy they received before will be increased depending on the type of unit they purchased,” according to the DOTr.

The subsidy is seen to provide additional financial assistance to consolidated PUV operators who have a valid Provisional Authority (PA) or Certificate of Public Convenience (CPC) for their purchase of modern PUV units under the special loan facilities of the government.—Ted Cordero/AOL, GMA Integrated News