The Development Bank of the Philippines will provide a P1.5-billion financing facility to jumpstart the Public Utility Vehicle Modernization Program (PUVMP), the Department of Transportation (DOTr) said on Sunday.
A memorandum of understanding will be signed by Transportation Secretary Arthur Tugade and DBP Chairman Alberto Romulo on Monday, September 11, at the DOTr headquarters in Clark City, Pampanga.
The DBP will assist the Department of Transportation in designing, developing and implementing an automatic fare collection system for PUVs.
The loan facility is called the Program Assistance to Support Alternative Driving Approaches (PASADA), which will offer “responsive and reasonable financing for transport corporations and cooperatives to allow them to acquire new and passenger-safe PUVs.”
According to the DOTr, transport cooperatives and corporations registered with the Office of the Transport Cooperatives will be able to borrow money buy new buses, jeepneys, minibuses and UV Express units and be part of the pilot phase of the PUVMP.
The loan may also be used for acquiring or constructing support facilities such as off-street garages and terminals, and equipment needed to properly operate and maintain the vehicles, the DOTr said.
In May, the DOTr also signed an MOU with the Land Bank of the Philippines to set up a financing facility for the PUVMP.
The credit facility was expected to meet the financing needs of 650 public utility jeepney operators or drivers in Metro Manila, in order for acquire new vehicles with engines compliant with Euro-4 or higher emission standards.