THE chairman of the Land Transportation Franchising and Regulatory Board (LTFRB) yesterday said that the modernization of jeepneys in the country is overdue.

For a long time, Assistant Secretary Martin Delgra said, there was no modernization program for public utility jeepneys (PUJ), which is a large sector serving a huge number of commuters.

“This particular sector, compared to other denominations, are less likely to assume the same role as that of the bus operator so the government has to come in to address that social need,” he said.

He said there is a need to help uplift the living conditions of PUJ drivers and operators.

“That’s why we included in the modernization program a financial component addressed to the PUJ sector. Any transport cooperative for the consolidation and fleet management will not anymore get P80,000 from their coffers to pay for the equity (as it will be shouldered by the government),” he said.

Officials of LTFRB have urged jeepney operators to form cooperatives and consortiums so they can acquire at least 10 new jeepneys worth more than P1 million each under the National Government’s PUJ modernization program.

Delgra said they are also talking to banks to bring down the interest rate for the purchase of new PUJ models so operators would be encouraged to apply for a loan.

The repayment scheme is up to seven years, which is the reason LTFRB will raise the validity of the franchise of PUJs.

“The granting of the loan to buy brand new PUJs is a condition on the franchise. It is where the bank can collect repayment,” Delgra said. (EOB)