Manila: The Land Transportation Franchising and Regulatory Board (LTFRB) has reached out to malls and other property owners to advocate for a significant reduction in rent for public utility vehicle (PUV) terminals.
According to Philippines News Agency, LTFRB Chair Vigor Mendoza II stated that a rent cut would assist PUV operators in reducing operational costs, providing some relief from the high fuel prices caused by the ongoing conflict in the Middle East. Mendoza emphasized that letters have already been dispatched to numerous owners and managers of establishments hosting PUV terminals, requesting a reduction in rental fees as a form of assistance to the public transport sector.
All LTFRB regional directors have been directed to send letters of appeal to terminal owners and operators within their respective jurisdictions, urging a rent reduction of at least 50 percent. Mendoza highlighted that such assistance from establishment owners would significantly alleviate the financial burden currently faced by the transport sector.
The initiative to reduce terminal rent is part of broader efforts to mitigate the impact of rising fuel prices, complementing existing government programs such as fuel subsidies for PUV drivers and operators, reduced toll fees, and 'Libreng Sakay' in select areas.
In addition to the rent reduction appeal, Mendoza expressed gratitude to the Development Bank of the Philippines (DBP) for considering a temporary suspension or waiver of penalties on loan obligations of transport service entities. This request specifically pertains to the Program Assistance to Support Alternative Driving Approaches (PASADA) program.
The DBP's response acknowledged the detrimental effects of the Middle East conflict and the resulting oil crisis on import-dependent countries like the Philippines. The bank indicated its willingness to consider temporary suspension or waiver of penalties on a case-by-case basis, contingent on approval from the appropriate authorities.
Mendoza thanked the DBP and reassured them of the LTFRB's commitment to fulfilling financial obligations while maintaining a cooperative relationship. He noted that this collaborative effort demonstrates the national government's dedication to supporting the transport sector during these challenging times.
