The Land Transportation Franchising and Regulatory Board (LTFRB) has asked financing institutions to halt the foreclosure of modernized jeepneys in Bacolod City, and promised assistance to help keep operators afloat.
The move comes after a majority of modernized jeepney operators in the city received foreclosure letters from lenders following missed loan payments.
LTFRB Chairman Vigor D. Mendoza II met with leaders of the Bacolod Modernized Jeepney and Transport Association (BMJTA) at the in Bacolod City on Wednesday, Aug. 12, to address their concerns.
Mendoza said he had conferred with the financial institutions on Tuesday, and they agreed to temporarily pause foreclosure proceedings.
Department of Transportation (DOTr) Secretary Giovanni Lopez instructed the LTFRB to extend all possible assistance to the modernized jeepney operators. The LTFRB is currently negotiating on their behalf with the Development Bank of the Philippines, LandBank, and private lenders, Mendoza said.
If they repossess the vehicles, what will they do with them, Mendoza said, adding that he asked operators for a complete list of involved banks to begin formal negotiations this week.
Mendoza attributed the operators’ financial strain to high fuel prices and stagnant fare rates. While operators are feeling the pinch, raising fares requires presidential approval due to its inflationary impact on basic goods.
The Department of Transportation has downloaded P1.5 billion to help the transport sector, he said.
There are various modes of assistance for modernized and traditional jeeps, as well as the expansion of the fuel subsidy program, he said.
Mendoza said the agency’s goal is to protect livelihoods and ensure a balanced outcome for operators and commuters.
The LTFRB is also finalizing a route rationalization study to determine the optimal number of units per route in Bacolod to ensure commercial viability.
BMJTA President Romeo Justiniani Jr. said they were satisfied with the meeting, and confirmed that Mendoza pledged to intercede with lenders to safeguard public transport services.
BMJTA Spokesperson Marcelo Ochia disclosed that as a short-term measure, the LTFRB promised a rehabilitation fund offering ₱20,000 in monthly amortization support per vehicle for three months—totaling ₱60,000—which they hope will be released next week.
The long-term plan involves continued government support for the modernization program, alongside funding and administrative training, Ochia said. “This gives us assurance that modernized jeepneys have a future,” he said.
Ma. Corazon Ocalinas, corporate secretary of Choret Corporation and a BMJTA member, said that Mendoza’s assurance means modernized jeepneys will continue to operate in Bacolod.
The BMJTA operates 329 modernized jeepneys through eight corporations and cooperatives in Bacolod City.*
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