MANILA, Philippines — State-run Land Bank of the Philippines (Landbank) has released more than P2 billion in loans for the purchase of modern public utility jeepneys (PUJs) as part of the government’s policy to upgrade PUJs.
As of August, the bank has approved P2.32 billion in loans for the acquisition of 1,093 modern PUJs through the Special Package for Environment-Friendly and Efficiently-Driven Public Utility Vehicles, also known as the SPEED PUV program.
Further, another P4 billion covering an additional 43 financing applications are awaiting the Landbank’s assessment and endorsement.
Under the SPEED PUV program, jeepney drivers may apply for a loan of up to 95 percent of the modern PUJ’s cost. The borrower will be charged with an interest rate of six percent per annum, payable based on cash flow and should be returned within seven years.
Landbank enforces the credit facility along with the Department of Transportation and the Land Transportation Franchising and Regulatory Board (LTFRB). It intends to provide the cash needs of jeepney drivers to comply with the public utility vehicle modernization program (PUVMP).
The LTFRB’s PUVMP will phase out traditional PUJs that are at least 15 years old in a scheme to introduce Euro 4 compliant units with new features like air conditioning, internet connectivity and contactless payment.
Also, the bank has partnered with the LTFRB for the second phase of the service contracting program wherein PUV operators will receive payouts for giving free rides to health care workers and authorized persons outside residence.
The program was allocated with a funding of P3 billion. Under it, Landbank will deliver the cash payments to eligible operators through their existing accounts, including partner outlets.