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Landbank approves two loans for jeepney modernization with co-ops

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Landbank

LAND BANK of the Philippines (Landbank) said it has approved loans for two transport groups to support their transition to modernized jeepneys.

Landbank President Alex V. Buenaventura told reporters on Wednesday on the sidelines of the Pantawid Pasada signing program that the bank issued “initial loan approvals” to Pangkalahatang Sanggunian Manila & Suburb Drivers Association Nationwide, Inc. (PASANG-MASDA) and 1-Transport Equipment Aggregator and Management, Inc. (1-TEAM).

“We’ve signed a deal with PASANG-MASDA. They have a loan for 60 jeepneys, for franchising routes within Quezon City area. That’s one. And then we have a loan with 1-TEAM” for an unspecified number of units, he said.

jeepney

Mr. Buenaventura added the loan terms require 5% equity from transportation cooperatives or corporations with the loan value at 95% of the cost of modernized jeepneys.

He noted PASANG-MASDA is finalizing its procurement, and it has a preliminary budget of P1.6 million per modernized jeepney. He estimates a monthly amortization rate of about P24,000 a month per unit.

Because e-payments through Beep cards are a feature of modernized jeepneys, Mr. Buenaventura said passenger fares may go straight to Landbank to pay off the loan. The interest rate on the loans is under 6%.

The jeepney modernization program requires operators to modernize their fleets over a period of three years, for units that are more than 15 years old.

Aside from Landbank, the government also tapped the Development Bank of the Philippines to assist operators and drivers with loans. — Denise A. Valdez