Manila: The Land Transportation Franchising and Regulatory Board (LTFRB) has initiated a proposal for discussions with government financing institutions (GFIs) to provide financial assistance to jeepney operators who are experiencing difficulties in fulfilling their loan obligations under the Public Utility Vehicle (PUV) Modernization Program.

According to Philippines News Agency, LTFRB Chairman Teofilo Guadiz III emphasized the need for a cooperative effort between the LTFRB, the Development Bank of the Philippines (DBP), Land Bank of the Philippines, and other financial institutions. The goal is to alleviate the financial strain on jeepney cooperatives and individual operators by exploring possibilities for more adaptable loan terms, grace periods, or restructuring options.

The proposed dialogue with GFIs is aimed at securing the welfare and sustainability of transport cooperatives that have invested in modern jeepney units through loans facilitated by the PUV Modernization Program (PUVMP). Guadiz highlighted that assisting these operators is crucial for ensuring the continued success of the PUVMP.

Operators have raised concerns about declining ridership in certain areas, increasing maintenance costs, and rigid amortization schedules that fail to accommodate daily income fluctuations. To address these issues, Guadiz hopes to persuade GFIs to consider implementing a moratorium or adjusted payment schemes, particularly for cooperatives that adhere to LTFRB standards.

Guadiz stressed the importance of preventing operators from defaulting on their loans, as such defaults would disrupt public transport services and potentially undermine the entire modernization initiative. The LTFRB plans to collaborate with the Department of Transportation (DOTr) and GFIs to initiate discussions that could lead to enhanced lending mechanisms, extended repayment periods, or government-backed subsidies.

The PUVMP, now referred to as the Public Transport Modernization Program (PTMP), was launched in 2017 with the goal of replacing outdated traditional jeepneys with safer, more environmentally-friendly, and efficient units. Despite the widespread adoption of modern PUVs, the cost, which ranges from PHP1.6 million to PHP2.4 million, remains a significant challenge for operators.