Question & AnswerQ&A (DEPARTMENT ORDER NO. 2018-016)
The PUVMP aims to restructure, modernize, and make the public transportation sector environmentally sustainable, ensuring stable and dignified livelihoods for PUV operators and safe, comfortable, and quick travel for commuters.
The Equity Subsidy is an amount provided by the national government to PUV operators to cover the equity required in purchasing new PUV units through loans from DBP or Land Bank, serving as an incentive support for fleet modernization.
Claimant Transport Operators are duly registered legal entities who have undergone the process prescribed by LTFRB for claiming the Equity Subsidy.
They must present the Notice of Selection issued by the LTFRB, which includes the operator's name, approved route, approved number of units, and type of PUV to ply the route.
The Equity Subsidy is a fixed amount of Eighty Thousand Pesos (Php 80,000.00) per unit.
No, the Equity Subsidy is non-transferable, non-convertible to cash, non-withdrawable, and must only be used for its intended purpose under the PUVMP and the guidelines of this Department Order.
The Department of Transportation (DOTr), Land Transportation Franchising and Regulatory Board (LTFRB), Land Transportation Office (LTO), Office of Transportation Cooperatives (OTC), Department of Finance (DOF), Department of Budget and Management (DBM), Development Bank of the Philippines (DBP), and Land Bank.
Old PUV units must be dropped, substituted with units compliant with new requirements, and surrendered for scrapping following rules promulgated by DOTr, LTFRB, and LTO.
Only after the approval of the loan application by the claimant at DBP or Land Bank, taking into account eligibility, terms, and existing bank policies and regulations.
The principles are inclusivity (absorbing existing operators), transparency (open processing and awarding), and fairness (objective criteria for eligibility and subsidy awarding).