DOTr returns P1.2B PUVMP subsidy fund to gov’t in 2022
THE Department of Transportation (DOTr) has reverted to the National Treasury an amount of P1.2 billion fund for the additional subsidy for drivers and operators affected by the PUV Modernization Program (PUVMP) in 2022.
The fund was to be used for the additional subsidy of P360,000 contained in the Memorandum Order 2022-063 for PUJ Class 2/3/4.
Following the said memo, the LTFRB subsequently provided supplemental guidelines for applications to avail of this additional subsidy through MC No. 2022-076.
The memo states that the LTFRB will announce, through its official website and social media pages, the number of unit slots to be opened and the applicable period to apply for the subsidy.
Atty. Vigor Mendoza II, Chairman 1-United Transport Alliance Koalisyon (1-UTAK), and his group applied for the additional subsidy with the PUVMP in the central office of LTFRB on February 17, 2023.
However, they were informed that applications for additional subsidies are currently “on hold” because the funds were reverted back to the national government at the end of 2022.
Per the PUVMP, the funds will be re-downloaded from the national government, and operators will be informed through a subsequent LTFRB memorandum circular when applications can be accepted.
It can be recalled that the DOTr launched in 2017 the PUVMP through DO No. 2017-011 of the Omnibus Franchising Guidelines.
In 2018, the DOTr issued another order providing guidelines for government subsidies to cover the equity required in purchasing new PUV (public utility vehicle) units under the financing programs.
Initially, this equity subsidy was only accessible through government financing programs like DBP (Development Bank of the Philippines) and Land Bank of the Philippines.
However, in 2022, the DOTR allowed access to the subsidy for financing programs and schemes of private banks and legitimate financing options.
