Jeepney manufacturer Elmer Francisco Industries (EFI) and Hong Kong-based fintech Madison Holdings have teamed up to develop a flexible financing scheme, aiming to enable jeepney operators to buy new public utility vehicles as old units are required to be phased out.
The program intends to help operators and drivers abide by the government’s Public Utility Vehicle Modernization Program (PUVMP). This is pursuant to Department of Transportation’s (DOTr) omnibus guidelines on the planning and identification of public road transportation services and franchise issuance.
Under the PUVMP, jeepneys that are at least 15 years old will be barred from the roads. The Land Transportation Franchising and Regulatory Board (LTFRB) said that by 2020, about 180,000 jeepneys should be replaced with safer, more efficient and environment-friendly units.
However, it is deemed challenging for transport groups to buy new jeepneys as each unit costs up to P2 million.
“The main concern is the investment needed to buy a brand-new jeepney,” EFI founder and chair Elmer Francisco said in a statement.
After consultations with transport groups, EFI designed a flexible financing program called the Boundary Hulog, which matches the paying capability of operators and drivers with their acquisition.
“They can choose to complete the payment in eight, nine, or even 15 years. What’s important is their income is not affected by the purchase of the jeepney as they follow the law,” he said.
Under the collaboration, Madison will supply electric-powered jeepneys to EFI, and provide financial and blockchain services, including a cryptocurrency fare payment system.
Madison believes there will be significant upfront and recurring demand for electric-powered jeepneys.
Transport groups that have expressed interest in this collaboration are: Alliance of Concerned Transport Operators, Alliance of Transport Operators and Drivers Association of the Philippines, Federation of Jeepney Operators and Drivers Associations of the Philippines, Juan TSC, Luzviminda Transport Federation, Nobablum Transport, Western Bicutan TSC, Tubojoda and Twelve Star TSC.