QuestionsQuestions (DEPARTMENT ORDER NO. 2018-016)
It provides the guidelines on the availment of the national government equity subsidy under the Public Utility Vehicle Modernization Program (PUVMP), specifically to cover the equity required by PUV operators in purchasing new PUV units through financing programs of DBP and Land Bank.
It is the amount provided by the national government to PUV operators to be used for the required equity for their loan applications under DBP or Land Bank; it is an incentive support for modernizing their PUV fleet.
A transport operator duly registered as a legal entity who underwent the process prescribed by LTFRB for claiming the Equity Subsidy.
Routes that serve new residential, commercial, and other land use developments pursuant to item 2.4 of Department Order No. 2017-011 or the Omnibus Franchising Guidelines (OFG).
It is a document issued by LTFRB to the selected applicant after evaluation/review of qualification documents for franchise application. It must include: (1) name of the operator, (2) approved route, and (3) approved number of units and the type of PUV to ply the route.
The D.O. is guided by the OFG principles of inclusivity, transparency, and fairness.
The budget allocated for equity subsidy is housed under BSGC ‘Others’ in the respective accounts of DBP and Land Bank, set up as a separate fund, with separate record-keeping and separate transaction recording in their books.
The D.O. guides all concerned agencies, primarily DOTr, LTFRB, LTO, and OTC, and also guides DOF and DBM and GFIs insofar as activities related to the PUVMP financing component are concerned.
Only upon approval of the loan application of the Claimant Transport Operator with the respective banks (DBP or Land Bank), based on eligibility and terms in the D.O. and on prevailing bank policies and rules.
They must have a valid franchise at the time of application, validated using the LTFRB-prepared Master List of PUV operators holding valid and current franchises.
Their eligibility is contingent on LTFRB approval of their application for new or developmental routes.
The operator must present the Notice of Selection issued by LTFRB to the bank.
Eighty Thousand Pesos (Php 80,000.00) per unit.
It causes the cancellation of the existing franchise and the issuance of a new or consolidated franchise, upon compliance with Department Order No. 2017-011 (OFG), LTFRB MC Nos. 2018-006, 2018-008, 2018-013, and other pertinent laws/rules as determined by LTFRB.
The availment automatically causes dropping of old PUJ units, which must be substituted with units compliant with the requirements of the OFG.
They must be surrendered for scrapping, as further provided under rules and regulations to be promulgated by DOTr, LTFRB, and LTO in coordination with other implementing agencies.
It is not transferable, not convertible to cash, not withdrawable, and cannot be used for purposes other than what is prescribed under the PUVMP and the D.O.
It can only be availed through DBP and Land Bank.
The subsidy is charged against the prescribed and approved equity requirement for the loan applied to acquire new PUV units, subject to availability of allotted funds for the budget cycle.
All other issuances inconsistent with the D.O. are deemed modified or superseded accordingly.