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June 23, 2024

Landbank lends P2.1B for the purchase of 810 modern jeepneys

Government-owned Land Bank of the Philippines led by bankero Cecilia Borromeo has granted P2.11 billion worth of loans to 78 public operators to finance the purchase of 810 brand new and modern public utility jeepneys last year.

Borromeo said the amount approved under the LANDBANK SPEED-PUV (Special Package for Environment-Friendly and Efficiently-Driven Public Utility Vehicles) last year was 177 percent higher than the P1.19 billion approved in 2020.

“The SPEED-PUV Program forms part of Landbank’s continued partnership with the National Government to advance the country’s transport system, help protect the environment, and enhance the overall riding experience of the public,” Borromeo said.

The state-run lender partnered with the Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB) to provide affordable financing to public transport cooperatives or corporations in opting for more energy-efficient, environment-friendly, convenient, and safer vehicles in support of the government’s Public Utility Vehicles Modernization Program (PUVMP).

Eligible borrowers under the program launched in 2019 may borrow up to 95 percent of the jeepney’s total cost at an affordable interest rate of six percent per annum, payable based on cash flow but not to exceed a maximum of seven years.

As of end 2021, Landbank has extended a total of P3.79 billion to 39 borrowers for the purchase of 1,619 modern jeepneys under the SPEED-PUV Program.