Law Summary
Principles and General Approach
- Provides guidelines for national government subsidy in the form of equity subsidy to PUV operators.
- Guided by inclusivity (preference for existing operators), transparency (open subsidy processing), and fairness (objective eligibility criteria).
- Applies to DOE, LTFRB, LTO, OTC, DOF, DBM, and GFI, especially DBP and Land Bank.
- Framework includes execution of equity subsidy linked to financing programs by DBP and Land Bank in consultation with DOTr and LTFRB.
Definitions
- Equity Subsidy: National government funds to cover required equity for PUV operators buying new PUV units under financing programs.
- Claimant Transport Operator: Registered transport operators who claim the equity subsidy.
- New or Developmental Route: Routes serving new land developments as defined in prior guidelines.
- Notice of Selection: Document issued by LTFRB confirming selection after evaluation of franchise applications.
Guidelines for Availment of Equity Subsidy
- Equity subsidy is an incentive to assist claimant operators in modernizing fleets.
- Accessible only through DBP and Land Bank financing programs.
- Budget allocated under Government Corporations' budget support accounts, maintained separately by the banks.
- Release and use of funds governed by this Department Order.
- Equity subsidy charged only upon loan approval by DBP or Land Bank, subject to eligibility and terms herein.
Eligibility Criteria
- Eligible if operator holds a valid franchise validated by LTFRB’s Master List.
- Operators applying for new or developmental routes are also eligible pending LTFRB approval.
- Must present Notice of Selection from LTFRB including operator name, approved route, number and type of units.
Terms and Conditions for Availment
- Fixed amount of ₱80,000 per unit as equity subsidy for existing franchise holders and operators applying for new routes.
- Availment cancels existing franchise and issues new or consolidated franchise following compliance to Department Orders and LTFRB Memoranda.
- Old PUJ units dropped must be surrendered for scrapping as per rules by DOTr, LTFRB, and LTO.
- Subsidy is non-transferable, non-convertible to cash, non-withdrawable, and restricted to prescribed purposes.
- Subsidy available exclusively through DBP and Land Bank, charged against approved equity for loan application subject to budget availability.
Repealing Clause
- All inconsistent prior issuances are modified or superseded by this Department Order.
Effectivity
- The Department Order takes effect immediately upon publication in the UP Law Center.