The Philippine State Land Bank (Landbank) assured transportation groups over the weekend that affordable funding will remain available to help them transition to safer and more efficient vehicles.
As of the end of January, loans totaling 6.9 billion pesos had been disbursed and the funding mechanism expanded again, Landbank said ahead of a planned week-long transport strike starting today to protest public vehicle (PUV) upgrades. deadline.
“Landbank continues to provide much-needed financial support to help drivers and operators modernize their fleet in line with the national government’s Transport Modernization Program,” said Landbank President and CEO Cecilia Borromeo.
“We remain committed to improving the country’s public transport system for the benefit of both transport operators and passengers,” she added.
Landbank’s SPEED PUV (Special Package for Cleaner and Economical Public Vehicles) loans were directed to 144 transport cooperatives and businesses to purchase more than 3,120 modern Jeepneys.
The existing 10 billion peso program fund could accommodate more transport cooperatives and corporations, Landbank said. This was the third increase in budget allocations from the original fund of 1.5 billion pesos in 2017.
Under the SPEED PUV program, eligible borrowers can borrow up to 95 percent of the total purchase price of a modern Jeepney. The interest rate on the loan is six percent per year or 0.5 percent per month with a repayment period of up to seven years. It also comes with a subsidy of 160,000 pesos per vehicle from the national government for units classified in class 1, 2, 3 and 4 models.
Unlike traditional jeepneys, modern PUJs are equipped with safety and convenience features such as air conditioning, CCTV systems, Wi-Fi connectivity and global positioning system.
Modern jeepneys also have a lower environmental impact because they meet European emission standards.