MANILA, Philippines — State-run lender Development Bank of the Philippines (DBP) yesterday said about P4.1 billion in debts remain unpaid by jeepney operators who availed themselves of modern units under the government’s Public Transport Modernization Program (PTMP).
Based on DBP data, up to P4.1 billion in loans have yet to be paid to the bank by public utility vehicle (PUV) cooperatives even when they are already past the deadline.
The DBP said the bad loans make up 55 percent of the P7.5 billion in loans issued by the bank to jeepney operators who shifted to e-jeepney units.
The loans covered the purchase of at least 3,249 units deployed for road transport. From this, the DBP said the past-due loans affect up to 2,753 units.
The Land Bank of the Philippines also declared P2 billion in past-due loans to PUV cooperatives. The loans cover 51 borrowers, indicating how difficult it is for some jeepney operators to pay monthly amortization.
Recently, the Department of Transportation (DOTr) issued a notice of cash allocation worth P1.5 billion to help PUV cooperatives pay outstanding amortization.
The DOTr is shifting to equity subsidies under PTMP to prevent jeepney operators from foreclosing their modern units.
However, it could become tougher for the DOTr to issue subsidies and halt foreclosures, having been granted just P177 million for the PTMP in the proposed budget for 2027.
Originally, the DOTr proposed a budget of P2.17 billion for the PTMP to cover subsidies for the program. However, the Department of Budget and Management approved only P177 million.
The PTMP, originally the PUV Modernization Program, aims to replace old jeepneys with newer ones for environmental and safety purposes. However, jeepney operators and drivers struggle to adapt because of the cost of shifting to modern units.
Currently, it could cost as much as P3 million to purchase a single unit of modern jeepney, so the government stepped in by opening a loan program with its state-run banks.
As a whole, the DOTr is at risk of entering 2027 with reduced, if not zeroed, budget in several of its priority projects, including the EDSA busway, allocated with no funds.