DBP, DOTr sign P1.5B loan program for PUV modernization program

The government’s Public Utility Vehicle Modernization Program is set to go on full swing with the allocation of P1.5 billion loan program. This is made possible through the signed Memorandum of Understanding (MoU) between the Development Bank of the Philippines (DBP) and the Department of Transportation (DOTr).

In line with this, the DBP introduces the Program Assistance to Support Alternative Driving Approaches (PASADA) that intends to offer “reasonable financing” for transport cooperatives and corporations in order to acquire new PUVs.

The MoU further states that the DBP will “advise and assist” the DOTr in developing a special loan program that would provide operators low equity, low interest rates, and longer payment periods.

DOTr says transport cooperatives and corporations that are registered with the Office of the Transport Cooperatives can avail DBP’s PASADA program.

As a review, the PUV Modernization Program is requiring old dilapidated PUVs to be replaced with new low-emitting and low-carbon units, similar to electric vehicles.

However, the PUV Modernization Program wasn’t received positively by jeepney transport groups. It has spurred a series of protest because the said program will affect about 650,000 jeepney drivers and around 250,000 operators. Drivers and operators argue that they don’t have enough funds to buy new low-emitting jeepneys. As such, the DBP and the DOTr seeks to address this issue with the P1.5 billion loan program.