E-Jeepney manufacturer Elmer Francisco Industries and Hong Kong-based Madison Holdings Group to offer flexible jeepney financing program
Top jeepney manufacturer Elmer Francisco
Industries (“EFI”) and Hong
Kong-based firm Madison Holdings Group(“Madison”)
look forward to a potential business collaboration that will make brand new
jeepneys affordableto transport groups and individuals through a flexible
financing program. The financing program will help operators and drivers abide by
the government’sPublic Utility Vehicle Modernization Program (PUVMP).This is
pursuant to Department of Transportation’s (DOTr) Department Order No.
2017-011, the Omnibus Guidelines on the Planning and Identification of Public
Road Transportation Services and Franchise Issuance.
Under the PUVMP, jeepneys that are at least
15 years old are deemed road unworthy. The Land Transportation Franchising and
Regulatory Board (LTFRB) noted that by 2020, around 180,000 jeepneys should be
replaced with safer, more efficient and environment-friendly jeepneys.
However, it is likely to be challenging for
the transport groups to be able to afford a new jeepney that costs up to two
million pesos each. EFI Founder and Chairman Elmer
Francisco said, “The main concernis the investment needed to buy a brand
new jeepney.”
After a series of consultations with the
transport groups, EFI formulated the flexible financing program called the
Boundary Hulog. Francisco explained, “This is why EFI’s Boundary Hulog
programis designed to match the paying capability of the operators/drivers.
They can choose to complete the payment in eight, nine, or even 15 years.
What’s important is their income is not affected by the purchase of the jeepney
as they follow the law.”
Madison believes there will be significant upfront
and recurring demand for electric-powered jeepneys which are compliant with the
program. Under the cooperation agreement with EFI, Madison will exclusively
supply these electric-powered jeepneys to EFI, as well as provide financial and
blockchain services, including a cryptocurrency fare payment system.
The transport sector expressed interest in
this potential business collaboration. This includes transport groups Alliance
of Concerned Transport Operators (ACTO), Alliance of Transport Operators and
Drivers Association of the Philippines (ALTODAP), Federation of Jeepney
Operators and Drivers Associations of the Philippines (FEJODAP), Juan TSC,
Luzviminda Transport Federation, Nobablum Transport, Western Bicutan TSC,
Tubojoda, and Twelve Star TSC.
FPJs come in Euro IV-compliant diesel-powered
variant, and electric-powered jeepneys (e-jeep). Other features include
automated fare collection, CCTV cameras, free wifi, speed limiters, and air
conditioner for some units. FPJs also have a capacity of passenger capacity of
34, which is almost twice more than the standard jeepneys with 20-passenger
capacity.
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