Landbank establishes P1-B fund for jeep modernization program

MANILA, Philippines -  State-run Land Bank of the Philippines has established a P1-billion credit facility to bankroll a pilot project to modernize public utility jeepneys across the country.

Landbank president Alex Buenaventura said the project would initially cover the replacement of 650 jeepneys at P1.4 million to P1.6 million per unit.

Buenaventura together with Land Transportation Franchising and Regulatory Board chair Martin Delgra III witnessed the signing of a memorandum of understanding (MOU) between Landbank chairman and Finance Secretary Carlos Dominguez and Transport Secretary Arthur Tugade in Davao recently.

“I am happy this MOU being signed today and all the details for efficient implementation worked out by our transport and financing experts. I am honored to sign this document as chair of the LandBank. This is the sort of high-impact financing the Bank was born to do,” Dominguez said.

Dominguez said public diplomacy is needed to spell popular support for the "politically challenging" plan of the Duterte administration to modernize 220,000 PUJ across the country, as part of government efforts to provide a safer transport system for commuters while mitigating the effects of climate change.

He said the government must carry out this difficult task of convincing PUJ drivers and operators as well as the riding public that the “well-loved" Philippine jeepney has become an "inefficient dinosaur" that “must now be relegated to the museum" and replaced with a cleaner, healthier, safer and more fuel-efficient means of everyday transport for the country's "bedraggled" commuters.