Manila: Land Transportation Franchising and Regulatory Board (LTFRB) Chair Vigor Mendoza II on Wednesday assured the Bacolod Modernized Jeepney Transport Association, Inc. here of assistance amid foreclosure concerns due to missed payments.
According to Philippines News Agency, Mendoza met with the group's officials and representatives after they asked for intervention from the Department of Transportation in addressing the financial and operational crisis they are facing. He explained that after discussions with financing companies, they agreed not to take immediate action on loans that are slightly overdue, acknowledging the challenges faced by operators due to high crude prices and the inability to raise fares.
The Bacolod Modernized Jeepney Transport Association operates 329 units through eight corporations and cooperatives, plying various routes across the city. These entities include Choret Corp., Loverboy Corp., AXPD Lines Corp., RSJ Lines Inc., MBMJ and Uy Transport Services Inc., Rico Catalogo Lines Inc., Negros East Transport Services Corp., and Cebu People's Multi-Purpose Cooperative. They have obtained loans from state-run Land Bank of the Philippines and Development Bank of the Philippines (DBP) for the purchase of modern jeepney units and have recently received demand letters and foreclosure notices due to overdue payments.
Last week, the modernized jeepney operators collectively sought government assistance, expressing concerns about the competition from traditional jeepneys, high fuel and maintenance expenses, labor costs, and other charges. Mendoza emphasized the importance of collaboration to resolve these issues, stating that it would be futile for financing institutions to repossess the vehicles since it would not solve the operators' problems. He committed to reaching out to these institutions to address the operators' concerns promptly.
Following the meeting with LTFRB, Marcelo Ochia, spokesperson for the Bacolod Modernized Jeepney Transport Association, announced that the national government will provide a rehabilitation fund to the affected operators. This fund will offer PHP20,000 in amortization support per unit for three months, totaling PHP60,000, expected to be released by next week as a form of temporary relief.
Ma. Corazon Ocalinas, corporate secretary and spokesperson of Choret Corp., reiterated the operators' commitment to serving Bacolod commuters, emphasizing their dedication to continuing service while ensuring protection from bank foreclosure. She noted that the Local Public Transport Route Plan will be reviewed to enhance service delivery without disrupting commuter services.
