The Sangguniang Panlungsod has urged Congress and the Department of Transportation (DOTr) to provide assistance to transport cooperatives operating in Iloilo City.
The city council passed a resolution addressed to the separate government institutions during its regular session on Wednesday, following a privilege speech delivered by Councilor Sedfrey Cabaluna titled “Past Due: The Financial Viability of Transport Cooperatives.”
In his speech, Cabaluna expressed his concern about the sad plight of several transport cooperatives after the DOTr implemented the Public Utility Vehicle Modernization Program (PUVMP) in 2017.
He said the program has the good intention of ensuring modern, efficient and environmentally-friendly public transportation in the country.
Iloilo City was among the first to respond by crafting its Local Public Transport Route Plan and started with the procurement of modernized jeepneys.
The Program Assistance to Support Alternative Driving Approaches, offering an interest rate of six percent and a seven-year repayment, has enticed cooperatives to avail of the loan program to procure modern jeepneys.
Unfortunately, he said that based on data he secured, seven of the 14 cooperatives operating in Iloilo are “past due” on their loan obligations, and are undergoing “remedial actions” like loan restructuring and possible foreclosure if they fail to pay.
Among the reasons cited for their deteriorating account are the increased fuel prices, traffic congestion, low collection, the continuous operations of non-traditional jeepneys, and mismanagement.
“This is a resolution that we strongly urge Congress and the Department of Transportation to provide all necessary assistance, legislative, technical, financial, and otherwise, including substantial subsidy to transport cooperatives operating in the city of Iloilo,” Cabaluna said.
Meanwhile, Councilor Alan Zaldivar, who chairs the city council’s committee on cooperatives and livelihood, said they have conducted a series of consultative meetings with some transport cooperatives and livelihood associations, and identified their challenge, together with the Cooperative Development Authority (CDA)
“Based on the meetings, we are ready, the city government is ready to extend technical assistance coming from our national government agency,” he said during the session.
Zaldivar also proposed a Transport Cooperative Council for them to have a legal entity.
“Together with CDA, we are crafting a program to help them in restructuring their loans,” he added.PNA
