THE Land Transportation Franchising and Regulatory Board (LTFRB) has issued guidelines for the transport service entities (TSEs) struggling to pay monthly amortization on modern jeepney units.
Acting LTFRB Chairman Greg Pua Jr. said the program would start this week with the guidelines ensuring clear, smooth and expedited delivery of aid to intended beneficiaries.
Covering modern jeepneys and UV (Utility Vehicle) Express nationwide and modern buses in Metro Manila, the LTFRB said the assistance covers up to three months of vehicle amortization or operational costs, with a monthly subsidy of P20,000 per unit for eligible operators with arrears, outstanding loans, or at risk of default.
The initiative supports President Ferdinand Marcos Jr.’s call for comprehensive assistance to the transport sector, particularly those who backed the government’s Public Transportation Modernization Program (PTMP), Pua said.
According to the bureau, the PTMP aims to modernize the country’s public transport system to match developed nations in service quality and environmental standards.
Many transport operators supported the program and acquired modern jeepneys through a government-subsidized loan scheme. However, recent Middle East developments and adverse weather conditions have made monthly amortization payments difficult, it said.
The acting LTFRB chief assured the concerned sector that the agency would deliver assistance as quickly and orderly as possible.
“This program proves the Marcos administration is both proactive and responsive to the concerns of the public transport sector. The LTFRB is committed to ensuring its proper implementation,” Pua said.
“We recognize the need to provide financial assistance to qualified TSEs amid rising fuel prices and operational costs that threaten public transport viability,” he added.
Pua cited a memorandum circular that would standardize the administrative and operational framework for the monthly amortization assistance program, which aims to prevent asset foreclosure and credit default by giving direct cash support, ensuring operational continuity for the benefit of commuters.
Funds may also offset daily operational expenses such as fuel, maintenance, spare parts, garage and terminal rental, and utilities, according to the LTFRB.
Eligibility requires modern units to have a Certificate of Public Convenience, no pending legal proceedings, and no records of serious road safety offenses, it said.
