DBP grants loan to modernize PUVs in Mandaluyong City

State-owned Development Bank of the Philippines (DBP)has granted a P60.8-million loan to a Mandaluyong-based transport cooperative for the purchase of modern jeepneys that will serve major routes in the city as itramps up support to the National Government’s Public Utility Vehicle Modernization Program (PUVMP), a top official said.

DBP President and Chief Executive Officer Emmanuel G. Herbosa said the bank’s loan to the Mandaluyong Transport Service Cooperative (MTSC) under its P1.5-billion Program Assistance to Support Alternative Driving Approaches (PASADA) program will be used to acquire 30 modern airconditionedPUVs that will ply the Boni to Kalentong and Pinatubo and Boni to JRU-Stop and Shop routes.

“DBP remains focused in helping transport cooperatives like the Mandaluyong Transport Service Cooperative acquire modern, safe, and environment-friendly public utility vehicles in line with the PUV modernization program,” Herbosa said.

DBP is the eighth largest bank in the country with assets totaling P700.9-billion as of end-September this year. It provides loans to strategic sectors such as infrastructure and logistics, small and medium enterprises, social services and community development, and the environment.

Herbosa said the new PUVs acquired by the MTSC can accommodate up to 26 passengers each, with each unit equipped with an automatic fare collection system, WiFi, closed circuit television, speed limiter, LED screen, and Global Positioning System.

He said that as of September 30, 2019, the bank has approved a total loan amount of P1.18-billion to 24 transport cooperatives under DBP PASADA which covers the acquisition of 629 modern and environment-friendly jeepney units nationwide.

“We have already released P368-million for the purchase of 222 jeepneys that are now serving in nine routes across the country, namely CCP-PICC to SWITEX Loop;Taguig City to Pasig City; Pateros to Fort Bonifacio; Alabang to Zapote; Alabang to Baclaran; Baclaran to Divisoria; Rodriguez to Commonwealth Market;Punta, Sta. Ana to Mandaluyong to Quiapo; Lucban to Lucena; and Route 11 to Calumpang to Lagao Public Market.”

Herbosa said DBP is evaluating the loan applications of 69 more transport cooperatives for the acquisition of more than 1,500 units which brings to total the number of DBP-supported units to about 2,000 units.

Established in 2017, the DBP PASADA also finances the acquisition of support facilities such as off-street garage charging stations and service centers necessary for the proper operation and maintenance of PUVs.It offers a fixed interest rate of 6% per annum inclusive of Gross Receipts tax for the entire term of the loan, and a loan tenor of seven years.