Over P5 billion loans for e-jeep shift still unpaid

MANILA, Philippines — More than P5 billion in loans handed out by state-owned banks to jeepney operators and drivers are now considered delinquent, prompting a fresh call for new strategies in the public transport modernization program.

The PTMP is causing financial strain on government-owned Land Bank of the Philippines and Development Bank of the Philippines (DBP).

Based on data from the Department of Transportation (DOTr), loans extended by Landbank and DBP for the PTMP have amounted to P15.39 billion as of May.

However, the banks reported that a third of the loans, or P5.11 billion, are tagged as default, which means the borrowers have missed out on their payments multiple times, compelling banks to view them as unlikely to settle.

The Congressional Policy and Budget Research Department (CPBRD) said the DOTr might need private investors to enter PTMP. Large-scale firms, such as Ayala and SM Groups, can explore a leasing model where they buy units for lease.

Under the proposed model, investors will be tasked to buy thousands of modern jeepneys, equip them with automated fare collection and lease them to drivers.

The CPBRD, which is the think tank of the House of Representatives, estimates about P5 billion in revenues monthly for 170,000 units earning P1,500 daily.

It also encouraged local governments to study the Libreng Sakay scheme of Quezon City.

The Quezon city government, led by Mayor Joy Belmonte, deploys bus trips on eight routes. The program has ferried around 48.6 million passengers since 2020.

The PTMP, originally the PUV Modernization Program, aims to replace traditional jeepneys with modern ones for environmental and safety purposes.