Modern PUV operators to get PHP 20,000 monthly aid

ILOILO CITY — Transport cooperatives and corporations operating modern public utility vehicles (PUVs) in Western Visayas, including Bacolod City, are set to receive PHP 20,000 per unit each month for three months under a government subsidy program meant to ease their loan payments and operating costs.

The Land Transportation Franchising and Regulatory Board in Western Visayas (LTFRB-6) said the program is expected to benefit more than 1,500 units as operators contend with rising fuel prices and other costs.

Joscet Abellar, chief transportation development officer of LTFRB-6, said operators may use the subsidy only for loan amortization or approved operating expenses, such as fuel, maintenance, spare parts, and terminal rentals.

“There is an increase in our fuel prices. Even if we extended the fuel discount, we can see that it cannot sustain [their operations]. We are fast-tracking the approval of their applications so that their operations will not be halted and they can continue to serve the riding public,” Abellar told the Daily Guardian on Friday.

The regional rollout follows guidelines the LTFRB issued in mid-September after President Ferdinand Marcos Jr. approved the Department of Transportation’s recommendation to help transport service entities struggling to pay the monthly amortization on modern units under the Public Transportation Modernization Program (PTMP).

Acting LTFRB Chairman Greg Pua Jr. said the assistance aims to prevent vehicle foreclosures and loan defaults through direct cash support, keeping units running for commuters.

According to the LTFRB, many operators bought modern jeepneys through a government-subsidized loan program, but developments in the Middle East and bad weather have made monthly payments difficult.

Who qualifies

Applicants must be registered and accredited transport service entities, such as transport cooperatives or corporations.

The units must be qualified modern jeepneys or UV Express vehicles operating nationwide, or modern buses operating in Metro Manila, and must have a valid Certificate of Public Convenience.

Operators must also have existing loan amortization obligations, arrears, or a risk of default.

The subsidy is primarily intended to help settle vehicle financing.

Applicants must have no pending legal proceedings and no record of serious road safety offenses.

How to apply

Abellar said applicants must submit the required documents to the LTFRB-6 office, where their records and eligibility will undergo initial evaluation before being endorsed to the agency’s central office.

“Once they get evaluated and approved, the assistance will be downloaded directly to their bank accounts by the LTFRB Central Office. The role of LTFRB-6 is for the initial evaluation of their documents,” she said.

For corporations, Abellar said LTFRB-6 will endorse applications as long as there are no pending cases related to their management or operations.

Operators whose modern PUVs are already fully paid may still qualify, but they must use the PHP 20,000 for approved operating expenses, including fuel, maintenance, spare parts, garage or terminal rentals, and utilities.

Abellar said nearly 20 transport cooperatives or corporations operate in Western Visayas, including Bacolod City.

Among the largest in the region in terms of units are the Metro Iloilo Transport Cooperative and the Western Visayas Transport Cooperative.

Abellar said LTFRB-6 has so far endorsed at least seven applications to the central office for final evaluation and release.

“If they pass the final evaluation, it will be distributed immediately,” she said.

Liquidation required

Because the assistance is spread over three months, Abellar said operators must submit liquidation reports to determine whether their units remain qualified in the succeeding months.

“They have to be very careful because this will not be given to them in one-time, big time. They need to liquidate it properly so we can see that they used it for the purpose for which it was intended,” she said.