The Development Bank of the Philippines (DBP) and the Department of Transportation (DOTr) entered into an agreement last September 11, 2017.
Under the agreement, the DBP will allocate P1.5-billion for the implementation of the government’s public utility vehicle or PUV modernization program.
“Program assistance to Support Alternative Driving Approaches or PASADA Financing Program will provide qualified borrowers the means to acquire brand new public utility vehicles under of consolidation and management model,” DBP Financial Resource Sector Executive VP Fe Susan Prado said.
The agreement aims to help PUV drivers and operators to comply with the policies of the new program without being buried in debt.
“We want for all the jeepney operators to form themselves into a consortium so they would have tougher financial capability as well as improved service to the public,” DOTR USec. Thomas Orbos said.
The loaned amount can be used for the construction of facilities such as garages and terminals as well as the purchase of equipment for the operation and maintenance of PUVs.
To avail of the said financing program, cooperatives and corporations should have registration with the office of the transport cooperative.
Transport groups, meanwhile said the program would not be burdensome if the DOTr would also provide assistance to individual drivers and operators.
“We are opposing this because the government is not helping us. The reason why transport groups are protesting because they know old jeepney units will soon be phased out,” Confideration Transport Group president Danny Yumul said.
However, DOTr Secretary Arthur Tugade has once again argued that the PUV modernization program will not be a burden to jeepney drivers and operators.
“It is not designed to phase out the jeepneys or the jeepney business, it is actually designed to strengthen, to guarantee the profitability of these jeepney business to move on and go on,” said Tugade.
The government targets to launch the DBP PASADA in October, in which, 700 to 800 prospective borrowers might have the opportunity to borrow money to purchase new vehicles for their livelihood. – Joan Nano | UNTV News and Rescue