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DOTr raises subsidy for modern PUV units to P280,000

Philippines | National

DOTr raises subsidy for modern PUV units to P280,000

By Aaron Recuenco

Department of Transportation (DOTr) Secretary Jaime Bautista has approved an additional subsidy for operators and drivers who would secure a loan for a modern public utility vehicle (PUV) under the government’s land transportation modernization program.

From the existing P160,000 subsidy for borrowers of modern PUVs, Bautista said the government subsidy is now a maximum of P280,000 for Class 2, 3 and 4 per unit.

Those who would avail of the units under the Class 1 classification will get a P210,000 subsidy per unit.

“The approval of the additional equity subsidy is aimed at providing ample capacity for each of the consolidated entity to buy modern PUV units,” said Bautista.

“Aside from this, this is also aimed strengthening the financial viability of the program for the drivers and operators who want to join the PUV Modernization Program,” he added.

The increase in the government subsidy is stipulated in the Department Order (DO) No. 2023-018

“Because of the retroactive effect of the order, those who have already secured a loan and currently paying the amortization will also benefit from the order,” said Bautista.

But he said the increase in the government subsidy will be granted to consolidated PUV operators with valid Provisional Authority (PA), or Certificate of Public Convenience (CPC).

Launch in 2017, the PUV Modernization Program was aimed at making the country's transport system efficient and environment-friendly as the program requires the new PUVs to be a least Euro-4 compliant engine or an electric engine to lessen pollution.

Related Tags

PUV modernization DOTR

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