Economy
A4 Thursday, May 4, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon
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Govt dangles financial aid to jeepney drivers, operators to modernize PUJs
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By Aerol B. Pateña | Philippines News Agency
he government will implement a financial assistance program for public-utility jeepney (PUJ) operators and drivers, in line with efforts to modernize the country’s public transportation system.
Tr a n s p or t at ion S e c re t a r y Arthur P. Tugade, Land Transportation Franchising and Regulatory Board (LTFRB) Chairman Martin Delgra III, Finance Secretary Carlos G. Dominguez III and Land Bank of the Philippines President Alex Buenaventura signed a memorandum of agreement (MOA) to establish a financing program for jeepney modernization in a ceremony held in Davao City on April 30. “Perhaps, it is providential indeed that we sign this memorandum of agreement.... This financing program is a gift from the President through the Department of Finance and LandBank for jeepney operators and drivers,” Tugade said in a news statement.
220,000 The total count of jeepneys nationwide, 90 percent of which are 15 years old and above. Jeepneys are said to be the biggest source of CO2 emission, resulting in 5,000 deaths annually.
The LandBank’s Special Environment-Friendly and Efficiently Driven Jeepney program will provide a credit facility to individual drivers and operators to enable them to replace their PUJs in compliance with the government’s
public-utility vehicle (PUV)-modernization program. Through this program, an initial budget of P1 billion for individual loans will be awarded to 650 PUJ operators and drivers in Metro Manila to enable them to acquire a jeepney with a minimum requirement of Euro 4 engine or better. “The lending packages are very generous. It offers low equity, longer payment period and very low interest rates,” Delgra said. He explained the modernization program is an effort to overhaul the country’s transportation system—from the quality of units on the road to the drivers. According to Delgra, the government intends public transportation to be adequate, safe and comfortable to passengers. “We’re looking at a travel time that is predictable. We’re looking also at PUV drivers who are disciplined, competent and mindful of the common good,” he said. Dominguez, who is concurrent LandBank chairman, appealed to drivers, operators and commuters to support the initiative. “We must convince jeepney drivers and operators that this is the way to go. They must understand that the financing package will make the shift affordable. T he publ ic must underst a nd
that our inefficient dinosaur, the PUJ, must now be relegated to the museum. It is dirty, inefficient, unhealthy and unsafe for commuters. It is time we bring our public transport to the 21st century,” he said. For her part, LTFRB Board member Aileen Lizada said, “Do not worry. Trust us that what we are doing is for the development of our country, which is also for your welfare and for the upliftment of the socioeconomic status of your respective families.” The program aims to modernize jeepneys plying the road though a low-carbon and low-emission vehicle technology by imposing a 15-year limit on PUJs. Standards on carbon emission and fleet management and maintenance would also be imposed to ensure passenger safety and improve air quality. More than 220,000 PUJs are registered nationwide, 90 percent of which are 15 years old and above. They are the biggest source of CO2 emission, resulting in 5,000 deaths annually. More specific details of the financing program is already being worked out by the transportation department and LandBank, and will soon be made available to the public for guidance.
Nimble and strong
A worker assembles the steel frame that will serve as the foundation of a skyscraper undergoing construction at the Bonifacio Global City (BGC) in Taguig City. BGC has chalked a marked increase in construction activities this summer season. ALYSA SALEN
ADB, Amro ink ADB reaffirms support to Asean trade facilitation crisis-prevention By Cai U. Ordinario
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@cuo_bm
OKOHAMA, Japan—The Asian Development Bank (ADB) will support any effort to open and facilitate trade in the Asean region, including the removal of nontariff measures (NTMs). In a briefing here on Wednesday, ADB Economic Research and Regional Cooperation Department Chief Economist and Director General Yasuyuki Sawada said more open trade helps improve intra-Asian trade, which has been on a decline. Last week Asean leaders called for the removal of the NTMs to help the region achieve food security and lick poverty. “Regional cooperation is one of the most important mandates of the ADB. Whether in trade facilitation or other respects, the ADB has been supportive,” Sawada said. In the Asian Development Outlook (ADO) 2017, ADB said if trade will be less open, there is a risk the entire region could suffer from slower economic growth. W hile there was no mention of NTMs, Trade Secretary Ramon M. Lopez earlier told reporters that informal talks have focused on the removal of NTMs in the region. NTMs could become barriers to trade preventing the free f low of goods in the region. These include sanitary and phytosanitary measures, technical barriers to trade, taxes and other similar trade regulations. “In general, developing Asia’s outlook would be undercut if trade became less open, but real impact from any policy changes is unlikely to materialize until the second half of 2018,” the ADO stated. These are some of the economic risks mentioned by Sawada that could threaten the upbeat economic outlook in the region. These risks include the “normalization” of the US federal reserve rates, which are expected to increase three times this year and four times next year. Sawada also said uncertainties surrounding policies of Asia’s largest trade partners, such as the US
and those in the euro zone. Further, the rise in commodity prices will dampen domestic consumption in many countries. The Philippines could be affected, since it remains to have a consumptiondriven economy. Among the key measures to counter these risks is to increase infrastructure funding. The Philippines is investing heavily on infrastructure under the Duterte administration. The government aims to increase its spending to 7.4 percent of GDP on infrastructure by 2022. In order to assist in these efforts, the ADB has just approved the extension of a technical assistance for a public- private partnership (PPP) project in Cebu City. The ADB said the technical assistance will help improve and modernize solid-waste management in that city. The assistance will be obtained from the Asia-Pacific Project Preparation Facility (AP3F), a multidonor trust fund managed by the ADB for PPP project preparation. “ADB’s assistance to Cebu City will fund a prefeasibility study involving review of economic, legal, technical, social and environmental aspects,” the ADB said. The study will help city authorities prepare a strong project concept, with the private sector expected to design, build, finance, operate and maintain the project. “PPPs will play a critical role for urban areas in Asia and the Pacific to improve infrastructure delivery and quality of life for residents,” said Ryuichi Kaga, head of ADB’s Office of PPP. Based on the ADO 2017, ADB projects the Philippines to post a growth of 6.4 percent this year and 6.6 percent next year. The Manila-based multilateral development bank said the Philippines will be the only country in Southeast Asia to have slower growth this year compared to last year. The ADB forecasts GDP growth in Asia and the Pacific to reach 5.7 percent in 2017 and 2018, a slight deceleration from the 5.8 percent registered in 2016.
and management pact in Japan
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OKOHAMA, Japan—The Asian Development Bank (ADB) and the Asean+3 Macroeconomic Research Office (Amro) have signed a memorandum of understanding (MOU) for crisis prevention and management. In a news statement issued a day before the ADB Annual Meeting here, the MOU between the ADB and Amro aims to strengthen cooperation between the two institutions to support Asean member-countries, China, Korea and Japan. “Asia and the Pacific has made tremendous progress in improving its financial resilience and strengthening its surveillance capabilities. Amro has been an essential part of this development,” ADB President Takehiko Nakao said. “Through this MOU, the ADB and Amro will work closely together on issues that are essential to the region’s future growth and financial stability,” he added. Through the partnership, the ADB and Amro will collaborate to support efforts and policies focused on economic growth, greater financial stability, and improved cooperation and integration in the Asean+3 region. The MOU will help enhance the two institutions’ support to further strengthen the region’s macroeconomic surveillance, as well as its crisis prevention and management capabilities. Worth noting is that the MOU was signed on the 20th anniversary of the Asian Financial Crisis (AFC) of 1997, which changed the financial and monetary landscape of the region. In this year’s annual meeting, the city of Yokohama sponsored a seminar on the anniversary of the AFC, its achievements and ways to move forward. “The MOU marks an important step forward in our ongoing collaboration with the ADB, an important partner in the region,” Amro Director Junhong Chang said. Cai U. Ordinario