LANDBANK reaffirms support to transport coops, modernization drive

The Land Bank of the Philippines (LANDBANK) expressed its continuous support to the transportation sector during the opening ceremonies of the 5th Transport Cooperative National Congress on January 29, 2020.

LANDBANK President and CEO Cecilia C. Borromeo assured transport cooperatives nationwide of readily available lending programs to help address the pressing concerns faced by the transport industry under the new normal.

“LANDBANK is one with all the players in the transportation sector toward building a more resilient and modernized transport system. As your long-time partner in growth and development, we reaffirm our commitment to support your transformative journey toward the next normal of greater modernization,” said LANDBANK President Borromeo.

Organized by the National Federation of Transport Cooperatives’ (NFTC) with the theme, “Transport Cooperatives’ Transformation towards the New Normal,” the National Congress was held to discuss several matters, including the implementation of the National Government’s PUV Modernization Program in relation to the challenges posed by the COVID-19 pandemic.

Support to transport cooperatives

The state-run Bank continues to offer the SPEED-PUVs Program (Support Package for Environment-friendly and Efficiently Driven PUVs Program) which extends affordable financing to transport cooperatives and corporations for the purchase of modern jeepneys.

As of December 2020, LANDBANK has approved PHP1.2-billion-worth of loans from 25 borrowers for the acquisition of 574 modern units. Another 43 loan applications are in the pipeline amounting to a total loan application of PHP2.53-billion for the acquisition of 1,126 modern units. This came with the government subsidy which has been increased to PHP160,000 per vehicle effective last year.

In 2020, LANDBANK also launched the I-RESCUE for BUS Transport Lending Program (Interim REhabilitation Support to Cushion Unfavorably-affected Enterprises by Covid-19 for Better Urban Services Transport) to offer a similar credit assistance to bus operators. With an initial fund of P3 billion, the loan facility can finance up to 80% of the acquisition cost of a modern public utility bus, with an affordable fixed interest rate of 5% per annum for the first three (3) years.

Arangkada Projects with the DOTr

Aside from offering financial support to transport cooperatives, LANDBANK has also partnered with the Department of Transportation (DOTr) and its attached agencies on various programs in support of the National Government’s transport modernization agenda.

Under the fuel subsidy scheme, LANDBANK has so far distributed direct cash grants worth PHP6,500 each to 122,311 transport operators who have been adversely affected by the implementation of COVID-19 safety protocols. Distribution of cash grants is ongoing and targeted for completion by April 2021.

The Bank has also extended appraisal services for the North-South Commuter Railway Extension Project (NSCR-Ex), which is designed to expand the existing mass transportation in Metropolitan Manila and adjacent areas. Likewise, under the Resettlement Action Plan Entitlements Distribution Mechanism, LANDBANK delivers cash entitlements to eligible residents and other Project-Affected Persons (PAPs) of the Extension Project.

The DOTr and LANDBANK will also team-up for the Pilot Production Testing of the Automatic Fare Collection System (ACFS), which will utilize convenient Mastercard EMVCo-compliant contactless cards to pay fares in public transport modes. An initial Proof of Technology demonstration was conducted last December 18, 2020.

Both of LANDBANK’s transport lending programs—the SPEED-PUVs and I-RESCUE for BUS Transport—are closely coordinated with the DOTr to ensure their alignment with the Public Utility Vehicle Modernization Program (PUVMP).

Interested borrowers may visit the nearest open LANDBANK Lending Center or Branch nationwide, or call LANDBANK’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000.