The Department of Transportation, or DoTr, has increased the equity subsidy to consolidated operators interested in acquiring units under the government's Public Utility Vehicle Modernization Program.

Transportation Secretary Jaime J. Bautista, through Department Order 2023-018 issued on 31 August, effectively hiked the equity subsidy to as much as P280,000 from the current P160,000 per unit.

Operators who purchase Class 1 PUV units will receive P210,000 per unit, while those who acquire Class 2, 3, or 4 vehicles will get P280,000 per unit.

The DoTr said it wanted to cut the amount of the monthly amortization of PUV operators who would purchase modern PUVs using their Provisional Authority or Certificate of Public Convenience.

Additionally, the move will strongly convey the program's financial viability for drivers and operators who want to be part of the PUVMP, according to the department.

The subsidy will be under the Special Loan Facilities of the Program Assistance to Support Alternative Driving Approaches, or PASADA, of the Development Bank of the Philippines and the Special Package for Environment-Friendly and Efficiently-Driven Public Utility Vehicles or SPEED UV of the Landbank of the Philippines.

Due to the retroactive application of the order, the beneficiaries of the increased subsidy would include first movers or existing borrowers under PASADA and SPEED PUV from 31 July 2018.

Under the PUVMP, new jeepney units should run with Euro 4-compliant engines or electric engines with solar panels for roofs.