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Manila Bulletin devider Philippines devider National devider LTFRB seeks intervention as operators struggle to pay modern jeepney monthly amortization

LTFRB seeks intervention as operators struggle to pay modern jeepney monthly amortization

Published Jul 7, 2025 02:13 pm
The cost of a modern passenger jeepney ranges from P1.6 million to P2.4 million and the Land Transportation Franchising and Regulatory Board (LTFRB) itself is aware that the monthly amortization for is high. 
On Monday, July 7, LTFRB chairperson Teofilo Guadiz III urged for a dialogue with Government Financial Institutions (GFIs) to assist modernized jeepney operators struggling to meet their loan obligations under the Public Utility Vehicle Modernization Program (PUVMP).
Guadiz said the dialogue is necessary in order to come up with a collaborative approach between the LTFRB, the Development Bank of the Philippines (DBP), Land Bank of the Philippines, and other financing institutions to ease the financial burden on jeepney cooperatives and individual operators.
We acknowledge the financial challenges faced by many of our modernized PUV operators. We are seeking a dialogue with our partner GFIs to explore more flexible loan terms, grace periods, or possible restructuring packages,” Guadiz said.
“This move aims not only to ensure continuity of the modernization program but also to secure the welfare and sustainability of transport cooperatives who invested in modern jeepney units through loans supported by the PUVMP,” he added.
Guadiz issued the call after some operators started to feel the brunt of the shift to modern jeepneys not only due to high monthly amortization but also due to rising maintenance costs.
The operational costs and the declining ridership in some routes are causing serious difficulties for the operators to meet their obligation to pay the monthly amortization.
And for Guadiz, this is the part where financing institutions should consider a moratorium or recalibrated payment schemes, especially for cooperatives complying with LTFRB standards.
“We cannot afford to let our operators default. If that happens, public transport service will  be disrupted, and the entire modernization initiative will be undermined,” Guadiz stressed.
Vindicated?
Launched in 2017, the PUV Modernization Program aims to replace aging jeepneys with safer, more environmentally friendly, and efficient units. 
While many operators have supported the initiative, the cost of modern units has remained a major hurdle.
At the height of the move to compel traditional jeepneys to consolidate and form a modern jeepney cooperative, some transport groups have been questioning the wisdom behind the transport modernization mainly due to the cost of the modern jeepneys.
Groups like Piston and Manibela  have been arguing that while the modern jeepneys are exempted from oil price hike concerns,  the operational cost of maintaining an electric vehicle will be costly in the long run.
The same transport groups have been repeatedly warning about the high monthly amortization for each of the modern jeepney.
The two groups went to the extent of holding transport strikes but the national government insisted on the need to implement the PUVMP, which is now at the route rationalization phase.
Lifeline 
Guadiz said the LTFRB is set to coordinate with the Department of Transportation (DOTr) and the Government Financing Institutions like  Land Bank and DBP to initiate high-level discussions that may result in improved lending mechanisms.
This includes extending repayment periods, or government-backed subsidies.
The dialogue with GFIs, as far as the LTFRB is concerned, is considered as a lifeline for many operators who fear losing their livelihood due to loan defaults.
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