DOTr hikes equity subsidy for PUVMP participants

The Department of Transportation (DOTr) has doubled the equity subsidy that it is providing for operators joining the Public Utility Vehicle Modernization Program (PUVMP) that would include those who have applied earlier.

Under a directive, Transportation Secretary Arthur P. Tugade said his group is amending the provision in its earlier order to “address the affordability of modern PUV units and financial viability of the program for drivers and operators participating in the PUVMP.”

With the amendment, equity subsidy for existing operators with valid franchises and operators applying for developmental routes now amount to P160,000 from P80,000 initially.

Tugade said this is his agency’s “way of helping stakeholders who are participating in the PUVMP as the country begins to gradually shift to the new normal amid the Covid-19 situation.”

“This is our way of saying that we at the DOTr are your partners. Contrary to the statements of other critics, we are here to assist and hear the concerns of all stakeholders. Especially now that we are gearing to a future wherein modernization will greatly benefit everyone—we really need this,” he said.

Tugade added that operators who applied from July 31, 2018, will also receive the increased subsidy.

“This is retroactive. This means that even if you have already received the previous amount, you can still claim the balance of the subsidy,” he said.

For his part, Land Transportation Franchising and Regulatory Board (LTFRB) Chairman Martin B. Delgra said this would entice more drivers and operators to shift to modern vehicles.

“More PUV operators and drivers can now participate in the PUV Modernization Program as they are assured of access to loans especially from government-run banks. We are assuring our PUV drivers and operators that the DOTr and the LTFRB are always here to support their movement towards modernization,” he said.


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