DBP is helping finance the shift to modern jeeps

There’s been a lot of criticism over the government’s Public Utility Vehicle Modernization Program (PUVMP), particularly when it comes to acquiring the said modern jeepneys. Granted, any public transport operator would jump at the chance to acquire new, more efficient, more environmentally-friendly vehicles, yet the finances to do so aren’t always available.

'Costly' upgrade

It’s no secret that the modern jeepneys are significantly more expensive than their predecessors. However the cost is a daunting but nonetheless justified necessity as it covers the many improvements of these modern jeepneys. Chief among them are the new, Euro-4 compliant engines that can now easily pass emission testing and produce less harmful exhaust. There’s also the new vehicle bodies that offer side-loading doors, forward facing seats, and headroom to allow passengers to stand upright if all the seats are taken. They also integrate electronic fare collection systems that allow passengers to simply pay by tapping their card. This offers two benefits: the driver no long has to worry about calculating change while driving; and the passenger no longer has to prepare change for their commute. Finally, these vehicles also come with modern features like built-in CCTV cameras for added security and speed limiters for safety. Another often unmentioned cost of modern jeeps is in their operations. Besides acquiring the modern jeeps, operators are also tasked to organize, form transport cooperatives, and plan for more efficient and beneficial routes. These operations also require some financing, particularly when it comes to acquiring the lot to park and maintain these vehicles as well as oversee operations. These requirements are also part of the plan to ensure they don’t park on the street when not in use, are maintained regularly, and can serve their routes effectively.

Help from DBP’s PASADA program

The JMC The JMC Costar Modern PUV
Thankfully, these operators are not left to their own devices to come up with the funding to make this much-needed shift. State-owned Development Bank of the Philippines (DBP) grants credit assistance to transport cooperatives through the bank’s Program Assistance to Support Alternative Driving Approaches (PASADA). This program finances the acquisition of Euro-4-compliant modern PUJs. The PASADA Program is DBP’s flagship program for the modernization of the country’s transportation system and offers flexible and competitive financing options tailored to the unique needs of transport corporations and cooperatives accredited by the Office of the Transport Cooperatives. One such beneficiary is the Metro Iloilo Transport Service Cooperative (MITS Coop). DBP has provided ₱367.72-million in credit assistance to MITS Coop for the acquisition of 148 brand new modern PUJs. MITS operates seven routes in Iloilo City. MITS Coop is registered with the Cooperative Development Authority and was organized in line with the National Government’s jeepney modernization program. It has 627 members comprised mainly of drivers, jeepney operators, and allied workers from various municipalities in Iloilo. It serves the transportation needs of an estimated 33,000 commuters following the issuance of a transport route plan that includes seven routes situated mostly in highly populated areas of Iloilo City. “DBP’s credit assistance to MITS Coop reflects our firm resolve to support the implementation of the National Government’s Public Utility Vehicle Modernization Program (PUMVP),” said DBP President and Chief Executive Officer Michael O. de Jesus. “This undertaking further fortifies DBP’s commitment to stimulate local businesses in the automobile industry and to contribute to the overall development of the transportation sector in the country.” “As a development financing institution, DBP will continue to pursue partnerships that would bring far-reaching benefits to the lives of commuters, local businesses, and the environment at-large,” de Jesus added. DBP turns over its financed brand new modern Public Utility Jeepneys (PUJs). At the turnover are (7th to 11th from left) DBP President and CEO, Michael O. de Jesus; MITS Coop Chairman, Josemarie De Los Reyes; DBP Senior Vice President, Rosemarie C. Callanta; DBP Senior Assistant Vice President, Jessica E. Juanico; and DBP Vice President, Marissa P. Aniño. Joining them are (from left) DBP Account Officer, Julie Ann P. Gabrillo; DBP Account Officer Assistant, Eden Mae S. Fuentes; JMC Philippines Vice President for Sales and Marketing, Joey C. Picadizo; LTFRB – Region VI Director, Richard Z. Osmeña; LTFRB Board Member, Mercy Jane Paras-Leynes; LTFRB Board Member, Riza Marie T. Paches; DBP Senior Manager, Lorijane T. Luy; DBP Assistant Vice President, Edwin T. Cagalitan; and MITS Coop Vice Chairman, Jose Rudy Modesto.
DBP Senior Vice President and Head of Development and Resiliency Sector Carolyn I. Olfindo said MITS Coop initially partnered with DBP in 2020 for the acquisition of 27 modernized jeepney units adding that “…its acquisition of 148 additional modern PUJs will provide employment opportunities to over 500 individuals in the province.” As of end June 2023, DBP has approved 104 accounts under the PASADA program with a total loan amount of ₱8.57-billion, Olfindo said. The bank’s tangible contribution is hastening the ongoing efforts to modernize the country’s transport sector. Indeed, there’s still a long way to go before the PUV Modernization Program manages to replace all the traditional jeepneys. However, it’s certainly not as impossible as the program’s critics portray it to be. DBP is ready and willing to offer credit assistance, and those that take them up on the offer will be surprised at just how much more convenient, progressive, and efficient our public transport can be.