LTFRB Promotes PUV Consolidation with Enhanced Subsidy Program
MANILA — The Land Transportation Franchising and Regulatory Board (LTFRB) is actively urging public utility vehicle (PUV) operators to consolidate their operations and to take advantage of the improved equity subsidies before the year-end deadline, under the Public Utility Vehicle Modernization Program (PUVMP).
According to Philippines News Agency, the consolidation deadline is set for December 31. Bolano encouraged PUV operators to adhere to the revised consolidation guidelines outlined in Memorandum Circular 2023-047. The new guidelines were devised after considering feedback from various stakeholders involved in the PUVMP, including drivers, operators, commuters, private sector partners, and national and local government units. The LTFRB has communicated that significant changes have been made to facilitate stakeholders wishing to meet the upcoming deadline. The details of the memorandum circular are available on the LTFRB’s official website.
Bolano also noted the increase in equity subsidy for those interested in purchasing modern PUVs under the PUVMP. As per the Department of Transportation (DOTr) Order No. 2023-018 and LTFRB Memorandum Circular No. 2023-045, eligible transport cooperatives or corporations can now secure up to PHP 280,000 for acquiring a Class 2, 3, or 4 modern PUV. Additionally, a loan subsidy up to PHP 210,000 is available for cooperatives purchasing Class 1 modern PUVs, marking an increment from the previous PHP 160,000 subsidy under the PUVMP. The government aims to cover any potential increase in the price of modern PUVs through this equity, lessening the financial burden on operators.
The application for the equity subsidy can be submitted through the Landbank of the Philippines and the Development Bank of the Philippines. Bolano assured that once qualified applicants receive approval and their PUVs are granted the necessary provisional authority or franchise, the equity subsidy will be released. He also mentioned the recent consultation with transport stakeholders, which addressed the equitable transition towards the PUVMP, route policy considerations, an extended timeline for purchasing modern PUVs, and route rationalization in collaboration with local governments.
Currently, the DOTr is pushing for the approval of a proposed PHP 1.6 billion budget dedicated to the full implementation of the PUVMP, including the equity subsidy, a social support program, and the route rationalization program of the initiative.