Iloilo transport co-op gets P367-M DBP loan
MANILA -Development Bank of the Philippines lent P367.7 million to an Iloilo-based transport cooperative to fund the group’s push to build a fleet of 148 “modern jeepneys.”
DBP president and chief executive Michael de Jesus said in a statement that the loan to Metro Iloilo Transport Service Cooperative or MITS Coop was part of the state-run bank’s efforts to promote efficient, safer, and greener public transportation system in the province.
The funding support is being made through DBP’s Program Assistance to Support Alternative Driving Approaches (Pasada), which is particularly designed to help in the modernization of the country’s transportation system.
Through Pasada, DBP offers flexible and competitive financing options tailored to the unique needs of transport corporations and cooperatives that are accredited by the Office of the Transport Cooperatives.
MITS Coop is also registered with the Cooperative Development Authority and has 627 members mainly of drivers, jeepney operators, and allied workers from various towns in Iloilo.
The loan is intended to finance the acquisition of public utility jeepneys that are compliant to European vehicle emission standards. These units are expected to serve a total of 33,000 commuters in seven routes in Iloilo City.
“DBP’s credit assistance to MITS Coop reflects our firm resolve to support the implementation of the national government’s Public Utility Vehicle Modernization Program (PUMVP),” de Jesus said.
“This undertaking further fortifies DBP’s commitment to stimulate local businesses in the automobile industry and to contribute to the overall development of the transportation sector in the country,” he added.
The DBP CEO said the bank would continue to pursue partnerships that would bring far-reaching benefits to the lives of commuters, local businesses, and the environment.
According to DBP senior vice president Carolyn I. Olfindo, the bank started working with MITS Coop in 2020 to support the latter’s acquisition of 27 modernized jeepney units.
Olfindo said the acquisition of 148 additional units will provide job opportunities to more than 500 individuals in Iloilo.
“As of end June 2023, DBP has approved 104 accounts under the Pasada program with a total loan amount of P8.57 billion, which serves as (DBP)’s tangible contribution to ongoing efforts to hasten the modernization of the country’s transport sector,” she said.
“The joint undertaking with MITS Coop is a strong and decisive step for DBP in terms of assisting transportation cooperatives to take the big leap in public sector transport modernization, which would be a boon for a bustling and progressive city such as Iloilo,” Olfindo added.