The Development Bank of the Philippines (DBP) is now working with the Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB) for a financial assistance scheme to help transport providers get back on their feet.
The assistance includes government subsidies to public utility vehicle (PUV) operators, according to DBP President and Chief Executive Officer Emmanuel G. Herbosa.
The subsidies will cover the operators' lost income during the temporary ban on PUVs in the wake of the community lockdowns.
“DBP is one with the DOTr and LTFRB in finding suitable and sustainable solutions to assist the transport sector as it recovers from devastating losses spawned by this pandemic,” he stated.
DBP is the seventh largest bank in the country in terms of assets and provides credit support to strategic sectors of the economy – infrastructure and logistics, micro, small and medium enterprises (MSMEs), social services and community development as well as the environment.
DBP will disburse its assistance to the transport sector via its Rehabilitation Support on Severe Events (RESPONSE) program.
RESPONSE finances the rehabilitation of both public and private firms affected by calamities, such as the COVID-19 pandemic.
As of end-June, the state-owned bank provided P19.16-billion credit assistance and payment deferment under DBP RESPONSE, benefitting 606 clients, of which 19 clients came from the transport sector.
DBP recognizes the essential role of the transport sector in the country’s economic recovery, Herbosa maintained.
Transport providers cater mostly to workers belonging to the Micro, Small and Medium Enterprise (MSME) sector, the backbone of the country's economy.
Thus, industry stakeholders should ensure the health and safety of commuters.
“They should examine their future role in the country’s mass transportation system while optimizing available resources to meet the demand for cleaner and more efficient modes of transport,” Herbosa concluded.