DOTr extends loan relief to modern PUV operators
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Transport cooperatives and corporations operating modern public utility vehicles (PUVs) will receive P20,000 per unit in monthly financial assistance to aid loan payments while helping protect their livelihoods.
The Department of Transportation (DOTr) said Monday the assistance will cover registered and accredited transport service entities (TSEs) participating in the Public Transport Modernization Program (PTMP), particularly those facing monthly amortization payments on their modern PUVs.
Transportation Secretary Giovanni Lopez issued the Department Order following national order for the agency to use government resources to assist transport entities that have joined the modernization program.
The monthly assistance will start this month and run for three months or until the funds allocated for the program are fully utilized.
“The President told us that the DOTr should extend assistance to our partner cooperatives and corporations that have joined the program and modernized their units.
We need to make sure they can continue their operations so they can continue serving commuters. They are the lifeblood of our sector, so it is only right that we extend assistance to them,” Lopez said.
Under the order, qualified TSEs will receive a fixed P20,000 for each modern PUV acquired from the start of the modernization program until the effectivity of the order. The assistance will be used to settle existing loans with accredited financial institutions.
The DOTr said the measure is intended to improve the financial viability of transport entities and reduce the risk of modern PUVs being repossessed due to difficulties in meeting loan obligations.
By helping operators keep their units, the agency also seeks to maintain public transport services and sustain the daily livelihoods of workers dependent on PUV operations.
Transport cooperatives and corporations that have already fully paid for their modernized units may use the financial assistance for operating expenses instead, subject to guidelines to be determined by the Land Transportation Franchising and Regulatory Board.
