The Public Transport Modernization Program (PTMP) is a national initiative aimed at building a transportation system that is Comfortable, Accessible, Safe, Sustainable, and Affordable (CASSA). As the transition continues, the PTMP Forum Series was launched to examine the program’s critical components – beginning with financing.
PTMP Forum 1, held on 14 November 2024, brought together key stakeholders from government agencies, financial institutions, transport cooperatives, manufacturers, and the academic community to discuss the financial challenges and opportunities surrounding the modernization of the public transport sector.
Highlights from the Forum:
- Financing Barriers Remain Significant: Newly formed cooperatives struggle to meet strict loan requirements, particularly the need for multiple years of audited financial statements. Financial institutions emphasized the need to ensure loan viability, while operators advocated for more flexible and inclusive financing mechanisms.
- Progress Amid Challenges: To date, over 11,000 modernized vehicles have been deployed nationwide, and support programs such as Tsuper Iskolar and EnTSUPERneur continue to aid affected stakeholders. However, difficulties remain in securing financing for electric vehicles, accessing equity subsidies, and addressing delayed loan approvals.
- Emerging Solutions: Stakeholders proposed expanding the equity subsidy program, simplifying loan processes, and promoting alternative financing models such as leasing. Emphasis was also placed on strengthening the role of local government units (LGUs) and enhancing institutional capacity to support cooperative development.
- Insights from EV Early Adopters: Case studies from early implementers of e-jeepney operations highlighted the importance of diversified revenue streams, operational partnerships, and gradual fleet expansion. Successful cooperatives benefited from strong LGU support, sound financial management, and collaborative planning.
A recurring theme throughout the forum was that a one-size-fits-all approach is ineffective in the context of transport modernization. The diversity in capacities, experiences, and needs across transport cooperatives emphasizes the necessity for tailored solutions and stronger cross-sector collaboration.
As the PTMP continues to evolve, Forum 2 will build on these insights by further exploring viable funding solutions that balance modernization goals with financial inclusivity, ensuring that the country’s public transport system evolves in a way that is both sustainable and equitable for all stakeholders.
The full transcript of the Public Transportation Modernization Program (PTMP) Forum: Financing Component in Focus is available below.
DOWNLOAD: PTMP Forum Financing Component in Focus Full Transcript
2. Financial Challenges and Opportunities for Public Transport Operators by Mr. Misael Melinas
3. Driving Change: Lessons from E-Jeepney Early Adopters in the Philippines by Dr. Sandy Gaspay