Long-term service contracts for the mobilization of private financing for the reform of the informal public transport sector in the Philippines

Considered the most ambitious program in the Philippines, the Public Utility Vehicle Modernization Program (PUVMP) requires transport cooperatives to replace their old jeepney with modern units. This however requires massive financing, and the government only provides very limited equity subsidies. This paper examines the impact of service contracts (SC) on the financial capacity of transport cooperatives to replace their fleet of old jeepney units. Using qualitative data drawn from interviews with 12 transport cooperatives, the authors investigate the effect of service contracting on the ability of transport cooperatives to access financing in terms of loans from banks. They find that long-term service contracts can enhance the level of confidence of transport cooperatives to service debt. The work presents a novel mechanism to mobilize financing from private banks for the reform of the informal transport sector.

• Record URL:
  • https://doi.org/10.1016/j.cstp.2024.101166
• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S2213624X2400021X
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/2213624X
• Supplemental Notes:
  • Crown Copyright © 2024 Published by Elsevier Ltd on behalf of World Conference on Transport Research Society. All rights reserved. Abstract reprinted with permission of Elsevier.
• Authors:
  • Sunio, Varsolo
  • 0000-0002-9781-9412
  • Mateo-Babiano, Iderlina
  • Rivera, Joyce
  • Patricia Mariano, Anne
  • Fillone, Alexis
  • 0000-0003-1123-995X
• Publication Date: 2024-3-15

Language

• English

Media Info

• Media Type: Web
• Features: Appendices; Figures; References; Tables;
• Pagination: 101166
• Serial:
  • Case Studies on Transport Policy
  • Volume: 15
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 2213-624X
  • Serial URL: http://www.sciencedirect.com/science/journal/2213624X

Subject/Index Terms

• TRT Terms: Contracts; Demand responsive transportation; Financing; Paratransit services; Public transit
• Geographic Terms: Philippines
• Subject Areas: Finance; Operations and Traffic Management; Public Transportation;

Filing Info

• Accession Number: 01913052
• Record Type: Publication
• Files: TRIS
• Created Date: Mar 26 2024 2:41PM