The Land Bank of the Philippines has approved a P68-million loan to the Novaliches Development Cooperative (NOVADECI) to fund the purchase of 32 modern jeepney units for its over 500 drivers and operator-members.
Financed under Landbank’s SPEED PUV Program (Special Package for Environment-Friendly and Efficiently-Driven Public Utility Vehicles), the modern public utility jeepneys (PUJs) will ply the routes of Novaliches in Quezon City to Malinta in Valenzuela City, and vice versa.
NOVADECI chairperson Leonisa A. Fausto and Landbank corporate banking group head Ma. Celeste A. Burgos led the virtual loan signing last August 3.
“Salamat at hindi ninyo binigo ang kahilingan ng aming mga kasapi mula sa transport sector na matugunan ng NOVADECI ang hamon sa transport modernization. Isang karangalan para sa amin na maging bahagi kayo ng aming proyekto,” Fausto said.
Landbank offers financing to public transport cooperatives or corporations for the purchase of modern vehicles under the SPEED PUV Program, which supports the Public Utility Vehicle Modernization Program (PUVMP) spearheaded by the Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB).
As of July 31, 2021, Landbank has provided financial support amounting to P1.95 billion to 45 public transport cooperatives and corporations for the purchase of 922 modern PUJs, covering a total of 53 routes.
Another 45 loan applications are currently being processed amounting to P4.23 billion to procure 1,823 units of modern jeepneys. Under the SPEED PUV Program, loans are released to borrowers 45 days upon submission of all necessary requirements.
Through the program, eligible borrowers may loan up to 95% of the PUJ’s total cost at an affordable interest rate of 6% per annum, payable based on cash flow but not to exceed a maximum of seven (7) years.
“Landbank stands ready in helping transport cooperatives nationwide to make the shift to safer and more efficient vehicles. Together with the DOTr and LTFRB, we will continuously support efforts to modernize the country’s transport system for the benefit of transport players and the riding public,” said Landbank president and CEO Cecilia C. Borromeo.