News Home /Resources /News /WHP allocates K500,000 for PMV subsidy program

WHP allocates K500,000 for PMV subsidy program

WHP Governor Hon. Wai Rapa and MVIL Chief Operating Officer Mr. Bafino Koi displaying the dummy cheque of K500,000.00.

Motor Vehicles Insurance Limited (MVIL) and the Western Highlands Provincial Government (WHPG) has entered into an agreement aimed at supporting Public Motor Vehicle (PMV) owners and operators in Western Highlands Province (WHP). This joint initiative involves the signing of a PMV Subsidy Memorandum of Understanding (MoU).

This initiative is supported by the WHP Governor Hon. Wai Rapa, which will see the subsidizing of registration and Compulsory Third Party (CTP) insurance costs of PMVs operating in WHP.

Under this one-year MoU agreement, the WHPG has allocated funding of K500,000.00 for the PMV subsidy program. This funding will be managed by MVIL via its Mt. Hagen Branch. The subsidy will cover the costs of PMV registration and CTP insurance for all PMVs operating within WHP. MVIL will facilitate the subsidy arrangement consistent with all existing MVIL registration and CTP insurance requirements.  The existing requirements are as follows:

a) The PMV truck/ bus must be brought into MVIL for physical inspection;

b) Persons applying for the PMV subsidy must present the corresponding expired Certificate of Registration and CTP Insurance that matches the credentials of the PMV being inspected;

c) Persons applying for the PMV subsidy must have a valid PMV Operating Licence issued by the Western Highlands Provincial Land Transport Authority. This must be presented to MVIL for confirmation during inspection;

d) The PMV truck/ bus must bear the approved “Blue PMV Plate” corresponding to their PMV Operating License/ Certificate of Registration. MVIL will need to sight and confirm this; and,

e) The PMV truck/ bus owner seeking renewal for registration and CTP must have on hand a valid roadworthy safety sticker issued by a certified inspection station/ workshop.   

The above registration and CTP insurance requirements apply to both new and existing PMVs seeking renewal. 

The subsidy arrangement works as follows:

1) The WHPG will subsidize 50% of the total cost of registration and CTP for PMVs in WHP serving the public and small businesses of Mt Hagen. Each PMV truck or bus has a fixed registration and CTP insurance cost attached to it, thus, the WHPG has decided to start the program with an initial K500,00.00 deposit made to MVIL’s operating account. Once cleared by the bank, MVIL will receipt the WHPG and commence the subsidy program initially through MVIL’s office at Mt Hagen. The subsidy program will be implemented by MVIL in close partnership with the WHPG. A delegated authority appointed by the WHPG will oversee the pre-approval of PMV subsidy applications before MVIL administers the subsidy.  

2) The subsidy allocation will be managed on a first-come-first-serve approach until the subsidy funding of K500,000.00 is completely utilized. Once the funding is depleted, MVIL will inform the WHPG, who will then have the discretion to either replenish the funding and continue the program or opt for its discontinuation.

3) MVIL through its office in Mt. Hagen, will maintain its existing policy for motor vehicle registration and CTP insurance where only PMVs that meet the registration requirements set out above will be registered. All PMVs, including those in WHP, are well versed with these existing requirements. 

4) The only addition is a one (1) page Subsidy Application Form which PMV operators are required to fill and present to the authorizing officer/s identified by the WHPG. Once the PMV operators’ subsidy application are pre-approved, this can then be presented together with the existing registration and CTP insurance documents to MVIL. MVIL will undertake its due diligence before processing the subsidy application. 

5) Every time a pre-approved PMV subsidy application is presented, MVIL will off-set the applicable PMV registration and CTP cost against the earmarked subsidy funding allocated by the WHPG until the funds are fully utilized. 

6) MVIL will provide the WHPG monthly reports. The report will include information about the type and number of PMVs that were registered in the prior month, the amount of the subsidy funding drawn down to register and insure these PMVs; and the remaining balance that would be roll-over into the next month; together with any observation and feedback received by MVIL from the PMV operators in Mt. Hagen. The report to the WHPG will also list the beneficiaries (names of PMV owners that benefited from the program) and copies of the beneficiaries’ PMV subsidy applications and their PMV registration and CTP certificates. This information is important for acquittal and audit purposes. 

7) Upon expiration or termination of the MoU, whichever comes first, MVIL will reimburse the WHPG the balance of unused subsidy funding.

8) Where the WHPG decides to renew the MoU upon expiration and where consensus is reached between the parties, the balance of unused subsidy funding in the current year will remain with MVIL and will be brought forward for use under the renewed MoU. 

9) Where the subsidy funds are fully utilized and not replenished by the WHPG, MVIL will refer all queries from PMV owners seeking subsidy to the WHPG, where a focal point will be established within the Western Highlands provincial administration to attend to these queries. MVIL will not process any subsidy application until the WHPG provides/ replenishes funding. 

10) In the absence of funds forthcoming, PMV owners can elect to wait until the subsidy funds are replenished by the WHPG; or pay their own PMV registration and CTP insurance costs. 

11) This MoU is for one year only and may be renewed upon mutual consent between the parties. 

12) MVIL will not charge the WHPG any fees under this MoU. 

On behalf of the MVIL Board and CEO, MVIL’s Chief Operating Officer Mr. Bafino Koi conveyed his appreciation to the WHP Governor Hon. Wai Rapa and the Western Highlands Provincial Administration to collaborate with MVIL.  

Mr. Koi said that “the primary objective of this program is to ensure continuity of essential public transportation services. The PMV Subsidy MoU Arrangement therefore benefits firstly, the PMV operators; and secondly but more importantly, it benefits the rural communities in Western Highlands who heavily rely on public transportation for access to markets, schools, healthcare facilities, and other government services within Mt. Hagen.”

Read More