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  DBP, DOTr join hands on financing PUV modernization
September 15, 2017

The DBP Program Assistance to Support Alternative Driving Approaches (DBP PASADA) will offer responsive and reasonable financing for transport corporations and cooperatives to allow them to acquire new, environment-friendly and passenger-safe PUVs, said President and Chief Executive Officer Cecilia C. Borromeo.

“We are proud to support the National Government in its efforts to modernize the public utility transport system by providing the financing facility that will ease the financial burden on operators,” she said.

Chairman Alberto G. Romulo, meanwhile, expressed optimism that the financing program will help in ensuring safe and modern public transport in the country, “Our officers and staff have done their best to formulate a responsive financing program that will soften the financial impact of the PUV modernization program on drivers, while also reducing the bank’s lending risks.”

DBP PASADA is available to corporations and cooperatives registered with the Office of the Transport Cooperatives participating in the Pilot Phase of the PUVMP, which have been awarded, or have been qualified to receive franchises by the Land Transportation Franchising and Regulatory Board (LTFRB) under the Omnibus Franchising Guidelines of the PUVMP.

The program will finance the purchase of public utility jeepneys, buses, mini-buses and utility vehicle express units. Loan proceeds may also be used for the acquisition or construction of support facilities like off-street garage/terminal and acquisition of equipment necessary for the proper operations and maintenance of the PUVs. Loans for above purposes can only be availed of together with the acquisition of the vehicles.

Equity requirement is at least 5% for vehicle acquisition and 25% for support facilities. Interest rate is fixed at 6% per annum inclusive of gross receipts tax (GRT) for the entire term of the loan.


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