|
Tuesday, June 17, 2008
Arroyo releases P1-B fund for engine conversion
MANILA -- President Gloria Macapagal-Arroyo on Monday released P1 billion for the conversion of the diesel and gasoline engines of public utility vehicles (PUVs) into liquefied petroleum gas (LPG) or compressed natural gas (CNG) enabled engines.
Arroyo said the P1 billion fund will be used to provide loans for the transportation sectors to enable them to convert their engines.
Arroyo Watch: Sun.Star blog on President Arroyo
The amount is part of the P4 billion VAT (value added tax) derived from oil, which is being tapped by the government to help cushion the impact of the rising prices of fuel, and even food, in the world market.
Transportation Secretary Leandro Mendoza said the government is prepared to provide loans for as low as P70,000 to cover the conversion kit or conversion of engines into a 70-30 diesel-LPG mix to as much as P250,000 to convert the whole diesel or gas engines into a 100 percent LPG- or CNG-driven engine.
The loans, which would be payable at P80 per day and at a zero percent interest rate, could be availed from the Development Bank of the Philippines, the Philippine Postal Savings Bank, Inc., and the Land Bank of the Philippines.
Mendoza said that aside from the conversion of engines, three additional CNG refilling stations would also be put up in Metro Manila to accommodate the CNG-driven PUVs that are mostly availed of by buses.
He said for a bus that uses up to P5,000 of gasoline or diesel per day, a CNG-converted bus is expected to save up to P3,000 or lower their fuel expenses to P2,000 per day.
President Arroyo has also directed the energy, science, trade, and transportation departments to oversee the shift or conversion of the PUV diesel or gas engines into alternative fuels-enabled engines.
Arroyo said the government has already started to convert up to 20 percent of its issued vehicles into LPG- or CNG-driven vehicles, adding that she is aware that the use of the converted engines would enable the government to save funds and at the same time help conserve the environment.
With the low payment scheme and additional savings to be generated with the use of the alternative fuels, Arroyo said she is expecting the transport sector will be able to pay up the loans so it would be used to provide more loans to other members of the transportation sector.
She hoped that the transport sector would generate more income with the lower fuel consumption.
During the launching of the government's third and last part of the P4 billion "Katas ng VAT" program in Pasay City Monday, Arroyo also inspected several converted PUVs.
These include electric dual engine buses, 20 converted jeepneys using a 70-30 diesel-LPG mix, 50 LPG-driven airport taxis, four CNG-driven buses, and four LPG-driven buses.
The other two "Katas ng VAT" program -- the P2 billion "Katas ng VAT: Pantawid Kuryente" and "Katas ng VAT: Pantawid Edukasyon" -- were already released early this month.
"Pantawid Kuryente" covers a one-time P500 subsidy for consumers that consume electricity of up to 100 kilowatt or less per month while "Pantawid Edukasyon" covers the P8,000 student loan and P60,000 four-year scholarship grant for poor students.
President Arroyo meanwhile reiterated that the rising costs of fuel and food is beyond the control of any government, but her administration is doing what it can to assist the public, particularly the poor. (JMR/Sunnex)
For more Philippine news, visit Sun.Star Baguio. (June 17, 2008 issue)
Write letter to the editor. Click here. |
|
|
|
[return to top]
[home]
|
|
Classes suspended due to morning floods