PUV modernization not ‘viable’ but to continue
The Public Transport Vehicle Modernization Program (PTMP) is “not viable in present state” but will still continue, Transportation Secretary Vince Dizon said on Tuesday.
“Given the present state of the modernization, … I think the fact that those who purchased new vehicles but cannot pay their loans, that is a clear sign that it is not viable in its present state,” Dizon told the Commission on Appointments when asked about the controversial public transportation plan formerly called the Public Utility Vehicle Modernization Program (PUVMP).
Nevertheless, Dizon maintained his earlier position that the modernization program will continue.
Loans suspended
“We have to acknowledge that the program involves a lot of problems. There’s really a lot,” he said. “And we need to address those problems one by one,” he added.
The government, through the Land Bank of the Philippines and Development Bank of the Philippines, has released loans amounting to P15 billion—with one third or more than P5 billion still due.
Dizon said the banks have suspended giving loans for the modernization. But he said the Department of Transportation will convince the banks to continue granting loans after these were suspended.
