A PRIVATE firm is eyeing to partner with jeepney cooperatives in the cities of Iloilo and Cebu and province of Bukidnon for the installation of automated fare collection system on their jeepney units in support of the Public Utility Vehicle Modernization Program (PUVMP) in the country.
Peter Maher, president and chief executive officer of AF Payments Inc., the operator of the contactless payment system Beep Card, said the initiative is part of the expansion of its business operations outside Metro Manila next year.
“We are looking at jeepney co-ops in Bukidnon, Iloilo, and Cebu. These projects will come up and they all have to follow the franchising guidelines. We are one of the viable suppliers of fare collection systems. So, we expect that we will be given the chance to pitch to provide services,” Maher said in its yearend press briefing in Makati City on Tuesday.
Maher said an automated fare collection system will ensure that passengers will be able to pay accurate fares for their trips as he also expressed his support to the Landbank and Development Bank of the Philippines in providing financial support to jeepney operators and drivers.
“We work with DBP and Landbank that have lending programs based on the modernization initiative. We are part of their offerings, so our system helps the banks to understand how the vehicles are performed from a lending point of view. So, the co-ops get to know good accuracy on automated reporting of their transactions, etc. So, it’s good for the operation of the bank. I think it is good for passengers as well who will pay accurate fares,” Maher said.
Under the PUVMP, jeepney units that are 15 years old will be replaced with Euro 4 engines or electrically-powered engines with solar panels for roofs.
These jeepneys will also be equipped with closed-circuit television cameras, a GPS navigation system, an automated fare collection system, speed limiters, dashboard cameras, and Wi-Fi.
An estimated P1.5 billion will be given to transport corporations and cooperatives to buy new PUVs through the Development Bank of the Philippines’ Program Assistance to Support Alternative Driving Approaches (PASADA).
The program will feature a 5-percent equity for vehicle purchase, 6-percent interest rate and seven-year repayment period.
Under PASADA, a maximum of 95 percent of the cost of the vehicle, and a maximum of 75 percent of the cost of the support facilities comprise the total loan per borrower. The government will also offer a maximum subsidy of P80,000 to cover the equity payment.
Jeepney operators will be required to consolidate into cooperatives for better access to resources, share operations and maintenance costs and maximize profits through efficient vehicle dispatch. (With a report from the Philippine News Agency/PN)
