Starting this September, the Department of Transportation (DOTr) is providing targeted financial assistance to transport cooperatives and corporations struggling with monthly loan payments, to keep modern public utility vehicles (PUVs) running and protect workers’ livelihoods.
The support comes via a new Department Order signed by Transportation Secretary Giovanni Lopez, fulfilling President Ferdinand Marcos Jr.’s directive to use government resources to bolster participants in the Public Transport Modernization Program (PTMP).
Qualified registered and accredited Transport Service Entities (TSEs) will receive P20,000 per month for each modern PUV. The funds are meant to help cover loan amortizations incurred since the start of the modernization drive up to the order’s effectivity. For those who have fully paid their units, the aid may also be used for operational costs, subject to Land Transportation Franchising and Regulatory Board (LTFRB) approval.
The assistance will run for three months starting September, or until the allocated funds are exhausted.
Financial and Policy Impact
This measure directly eases financial pressure on operators who invested in modern units but face difficulties keeping up with monthly payments. It also reduces the risk of vehicle repossession, strengthens TSEs’ standing with lending institutions, and works to stabilize the broader PTMP financing system. By preventing defaults, the government aims to avoid service disruptions that could arise if modern PUVs are taken out of operation.
“These entities are the lifeblood of our sector—we must ensure they can keep serving commuters,” Secretary Lopez stated. The policy also addresses ongoing financial challenges faced by groups transitioning from traditional jeepneys to modern vehicles, balancing transport modernization goals with operational and economic sustainability.
