• GILBERT P. BAYORAN
The Land Transportation Franchising and Regulatory Board (LTFRB) has appealed to banks and financing institutions to temporarily suspend the foreclosure of more than 300 modernized jeepneys in Bacolod City as operators struggle with rising fuel prices and mounting financial difficulties.
LTFRB Chairman Vigor Mendoza II said on Wednesday, Aug. 12 he made the appeal following a meeting with financing companies on August 11.
He disclosed that lenders had agreed to adopt a “no touch” approach toward units whose loan payments are only moderately past due.
“It’s useless to pull out the units. Ano gagawin nila sa sasakyan?” Mendoza said, emphasizing that the continued operation of the vehicles is essential because they provide public transportation to commuters.
Mendoza said operators are facing increasing financial pressure as fuel prices rise while passenger fares remain unchanged.
He added that the Department of Transportation (DOTr) had directed the LTFRB to provide as much assistance as possible to the transport sector.
The LTFRB chief said the government is considering several forms of assistance for both modernized and traditional jeepney operators, including support for loan amortization, rehabilitation of old units, and the expansion of fuel subsidy programs.
Mendoza said the government is looking at increasing the fuel subsidy to as much as P12 per liter.
He added that the DOTr has allocated P1.5 billion for the transport sector, describing the funding as an interim measure while the government develops longer-term solutions to the financial challenges facing public transport operators.
However, Mendoza warned that operators without valid franchises or those whose franchises have not been renewed may encounter difficulties in accessing the fuel subsidy.
Marcelo Ochia of the Cebu People’s Multi-Purpose Cooperative, spokesperson for the Bacolod Modernized Jeepney Transport Association, said operators welcomed the immediate action taken by the LTFRB.
During a meeting with transport groups in Bacolod, Ochia said that Mendoza outlined a short-term rehabilitation and amortization assistance package worth P20,000 per unit per month for three months, amounting to a total of P60,000 per unit.
Ochia said the rehabilitation assistance would provide temporary relief while the government considers additional support, including fuel subsidies.
He added that the administration remains committed to the jeepney modernization program while also supporting the rehabilitation of existing modernized jeepneys to ease the financial burden on operators.
Atty. Romeo Justiniani Jr., president of the Bacolod Modernized Jeepney Transport Association, said the group was satisfied with Mendoza’s response, particularly regarding the foreclosure notices received by several cooperatives.
Justiniani clarified that no actual foreclosure had taken place although several cooperatives had already received notices warning of possible foreclosure.
He said operators remain hopeful that the LTFRB’s discussions with banks and financing institutions will result in a solution that benefits both lenders and transport operators.
Despite the increase in fuel prices, transport groups have also agreed to keep fares unchanged for the time being.
Operators said the decision has contributed to their financial difficulties but is intended to spare commuters from additional costs.
Ma. Corazon Ocalinas, corporate secretary of Choret Corp. and a member of the Bacolod Modernized Jeepney Transport Association, assured commuters that modernized jeepney services in Bacolod City would continue. | GPB
