E-Jeepney manufacturer Elmer Francisco Industries and Hong Kong-based Madison Holdings Group to offer flexible jeepney financing program

by - March 20, 2019

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.and to operate for the safety and convenience of the riding public.

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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