Experience Effortless Banking

The worsening traffic and public transport conditions require bold and transformative solutions which likewise need huge funding to support public transport operators especially during the period of pandemic where social distancing protocol has to be observed which in turn translates to reduction by half the public utility vehicles’ carrying capacity per trip.

With route rationalization and franchise consolidation, operators shall become more financially viable as the number of trips will increase from faster turn-around of buses that will consequently result to decreased maintenance costs for each unit and will likewise offset the negative impact of reduced carrying capacity. As public transport becomes more reliable, travel time can also be forecasted and pre-determined that may entice commuters using private cars to patronize public transportation.

OBJECTIVES

The program aims to provide financing to Public Utility Bus (PUB) operators for the acquisition of modern PUBs.

ELIGIBLE BORROWERS

Public transport cooperatives or corporations who are members of the consortium selected for the Metro Manila Bus Modernization Program.

ELIGIBILITY CRITERIA

1. Registered with Cooperative Development Authority (CDA) or Securities and Exchange Commission (SEC)
2. Holder of Certificate of Public Convenience (Franchise)
3. With no adverse findings on Credit Information/Background Investigation
4. With bus terminals and garages

ELIGIBLE LOAN PURPOSE

Acquisition of PUBs that comply with the standards set by the DOTr.

LOAN FEATURES

Other Conditions

1. Comprehensive insurance of mortgaged vehicle must be coursed through LBP Insurance Brokerage Inc.
2. Any change or amendment to the specifications of the PUB may be allowed provided LANDBANK is notified in advance of such change and that the cost shall not exceed the approved amount.

DOCUMENTARY REQUIREMENTS

1. 1. Pre-processing
2. 1. 1. Accomplished application form;
      2. Copy of corporate/cooperative registration papers from SEC/CDA;
      3. Board resolution to borrow from LANDBANK;Copy of BIR registration with Tax Identification Number (TIN) and Social Security System registration;
      4. Certified list of officers, directors, major shareholders with attached resume including bank dealings and TIN; and
      5. Audited financial statements (FS) for the last three (3) years plus current year interim FS.
          
3. 2. Pre-release
4. 1. 1. Certified true copy of Certificate of Public Convenience (franchise);
      2. Certification from supplier that the PUBs to be purchased are compliant with the standards set by DOTr;
      3. Sales contracts, quotations and invoices from bus dealer or manufacturer;
      4. Registered REM duly encumbered in favor of LANDBANK; and
      5. Certification from dealer or manufacturer of the availability of spare parts and after sales support services.
          
5. 3. Post-release
6. 1. 1. Certified true copy of Provisional Authority (PA) to operate PUB not later than five (5) working days after issuance of such document;
      2. Original copies of Official Receipt and Certificate of Registration duly encumbered in favor of LANDBANK under the name of the PUB operator within 10 working days from date of loan release;
      3. Registered Chattel Mortgage on the PUB within 10 working days from date of loan release; and
      4. Comprehensive insurance coverage of PUBs duly endorsed in favor of LANDBANK within 10 working days from date of loan release.