LTFRB starts financial support program for modern Jeepney operators

MANILA: The Land Transportation Franchising and Regulatory Board (LTFRB) has officially started providing financial support for modern jeepney operators. This is in compliance with the order of the Department of Transportation Secretary Giovanni Lopez. 

Notably, the guidelines for this program were already released by the DOTr. It focuses on transport service entities (TSE) that are currently experiencing difficulties in paying off the monthly amortizations for their modern jeepney units. 

The said financial support consists of P20,000 per unit per month for eligible operators with existing arrears, active loan obligations, or those at risk of defaulting on their loans. The fund may also be used by operators to offset operational costs. This includes fuel, maintenance, and spare parts - among others. 

Other stories: You are now looking at the Kia PV7 We might see Level 2+ self-driving Hyundai models as soon as 2028 Wels to replace Simoes as Ford PH managing director

 

Eligible TSE groups must hold a Certificate of Public Convenience (CPC), have no pending legal cases, and have no history of serious road safety violations. 

“This program is proof that the PBBM (President Ferdinand “Bongbong” R. Marcos) administration is both proactive and sensitive in the concerns being raised by those in the public transport sector. And we in the LTFRB commit to ensuring that this will be properly implemented,” Acting LTFRB Chairman Greg Pua said.

“We in the LTFRB recognize the need to provide financial assistance to qualified TSEs in view of increasing fuel prices and other operational expenses that adversely affect public transport viability and helping mitigate these costs,” Pua added. 

As the agency added further, this supports the ongoing Public Transportation Modernization Program (PTMP). This, meanwhile, is seen to further improve the country’s public transportation, making it more environmentally friendly, safer, and more comfortable for commuters. 

According to the LTFRB, most of these modernized jeepney units one can see plying the country’s roads were acquired by TSE groups through a loan program subsidized by the national government. Despite this, the current situation in the Middle East that negatively affects fuel prices, alongside adverse weather conditions, has greatly hampered the ability of TSE groups to earn consistent income to pay for their monthly amortizations. 

On this note, the LTFRB has argued that this program was a necessary lifeline, not just for these modern jeepney operators, but also for the public transport system as a whole. 

Per the LTFRB, the immediate focus of the assistance program is on preventing asset foreclosures and credit defaults for TSE groups. This, in turn, will ensure that they will remain operational. 

Also read:

LTFRB: apprehension of unconsolidated PUVs now in effect

LTFRB: transport coops to decide on modern PUV models, not gov't

DOTr clarifies PUVMP guidelines

Connect with us through our various social media pages:

Facebook: https://www.facebook.com/ZigWheelsPhilippines

Instagram: https://www.instagram.com/zigwheelsph/

Tiktok: https://www.tiktok.com/@zigwheels

Youtube: https://www.youtube.com/@ZigWheelsPhilippines/