A memorandum of understanding (MoU) on financing the government’s public utility vehicle (PUV) modernization program was signed by transport and finance officials on Sunday.
Transportation Secretary Arthur Tugade, Land Transportation Franchising and Regulatory Board Chairman (LTFRB) Martin Delgra 3rd, Finance Secretary Carlos Dominguez 3rd and Landbank President Alex Buenaventura signed the MoU in Davao, the same day the Davao-General Santos- Bitung route between Indonesia and the Philippines was launched. (See related story on Page 1)
According to Tugade, the signing was conducted before Labor Day as a “gift” from President Rodrigo Duterte to workers in the country.
Under the MoU, drivers and operators of public utility vehicles (PUVs) may borrow from Landbank to fund their purchase of modernized jeepneys at a 6 percent interest.
“The signing of the memorandum of understanding is an expression of the DOF [Department of Finance], through Landbank, of supporting the modernization program of the DoTr [Department of Transportation] headed by the LTFRB,” Tugade said.
Delgra said training for the PUV drivers will start in May at the Drivers’ Academy.
All PUV drivers will be required to undergo the training for free.
Dominguez said he hopes that the modernization program will help combat climate change as the new transport system will help promote clean air, move people efficiently and eliminate road congestion.
According to LTFRB spokeswoman Aileen Lizada, the PUV drivers may avail of the loan upon the approval of local government units.
“The only way to move forward is to partner with government financial institutions,” Delgra said.