LOCAL JEEPNEY manufacturer Elmer Francisco Industries (EFI) is working with Hong Kong-based financial technology firm Madison Holdings Group Ltd. to offer loans to transport groups and drivers who need funds to acquire new jeepneys to comply with the government’s Public Utility Vehicle Modernization Program (PUVMP).
In a statement on Wednesday, the two companies said they are collaborating on a flexible financing program called Boundary Hulog that will make new jeepneys, which cost up to P2 million each, affordable for jeepney drivers and operators.
“EFI’s Boundary Hulog program is designed to match the paying capability of the operators/drivers. 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,” EFI Founder and Chairman Elmer Francisco was quoted in the statement as saying.
The PUVMP is a government initiative that requires old jeepney units to transition to modern e-jeepneys in the next two years. This means jeepney units aged 15 years and older would eventually be prohibited from hitting the road.
However, Mr. Francisco noted the transport groups and drivers are concerned about the investment needed to acquire a new jeepney.
According to EFI and Madison, transport groups have expressed interest in the program. These include Alliance of Concerned Transport Operators (ACTO), Alliance of Transport Operators and Drivers Association of the Philippines (ALTODAP), Federation of Jeepney Operators and Drivers Associations of the Philippines (FEJODAP), among others.
For its part, Madison said it sees “significant upfront and recurring demand for electric-powered jeepneys” that comply with the program.
“Under the cooperation agreement with EFI, Madison will exclusively supply these electric-powered jeepneys to EFI, as well as provide financial and blockchain services, including a cryptocurrency fare payment system,” the companies said.
The government organized loan programs to assist drivers and operators in the PUVMP transition, offered through the Landbank of the Philippines and the Development Bank of the Philippines. — Denise A. Valdez
