LANDBANK opens P1-B credit facility for jeepney modernization program

Friday, May 19, 2017

In support of the government’s Public Transport Modernization Program, the Land Bank of the Philippines is putting up a P1-billion credit facility for a program that will help driver-operators replace 15 years old and above public utility jeepneys (PUJs) with modern public transport.

In a ceremony held recently in Davao City, Transportation Secretary Arthur Tugade and Finance Secretary and LANDBANK Chairman Carlos Dominguez signed the Memorandum of Understanding for the Special Program for Environment-friendly and Efficiently-Driven Jeepneys (SPEED Jeepneys) program. Land Transportation and Franchising Board (LTFRB) Chairman Martin Delgra III and LANDBANK President and CEO Alex Buenaventura signed as witnesses.

The SPEED Jeepneys facility will be initially rolled out in Metro Manila, Metro Cebu, and Metro Davao before its full implementation nationwide.            

“For this pilot project, we aim to cover the replacement of 650 PUJs estimated to cost between P1.4M to P1.6M per unit. Our support to this program affirms our commitment in LANDBANK to promote environmental protection and sustainability,” said LANDBANK President and CEO Alex Buenaventura.

Green for SPEED

The modernization of jeepneys will help reduce toxic fumes from public transport vehicles and support alternative clean energy options for the public transport sector.

The program also seeks to increase the daily income of the individual driver-operators and help them own the PUJs that they drive through a simple and accessible loan repayment scheme. The transition to modern jeepneys is also expected to enhance safety and convenience of the commuting public and improve traffic congestion.

How to avail of the LANDBANK SPEED program

LANDBANK will extend loans for up to 95% of the total acquisition cost of the unit to be financed, while the remaining 5% is the equity of the borrower.

Individual jeepney driver-operators who wish to avail of the loan must be a member of an LTFRB-accredited transport cooperative or association, and must be between 18 to 58 years old on the date of the loan availment.

Eligibility requirements include an NBI Clearance, SSS and PhilHealth numbers, and a valid professional driver’s license with at least three-year driving experience and no record of vehicular accident due to reckless driving.

The transport cooperative or association where the borrower is a member of must submit provisional permit to operate a route issued by the LTFRB, copy of registered corporate/cooperative papers where he/she is a member of; among other documentary requirements.

For more information about the LANDBANK SPEED Jeepney Program, interested driver-operators or transport cooperatives may call the Lending Program Management Group at (02) 405-7509 or visit the LANDBANK Lending Center nearest you.