Question & AnswerQ&A (MEMORANDUM CIRCULAR NO. 2018-008)
MC No. 2018-008 implements and enforces Department Order No. 2017-011, which contains the Omnibus Guidelines on the Planning and Identification of Public Road Transportation Services and Franchise Issuance.
The benefits include access to common resources, better fleet management systems, more efficient collection processes, more effective franchise record management, improved profitability, and longevity of public land transportation operations.
Existing Individual Franchise Holders are those franchise holders with valid and subsisting franchises that have less than one-third of the total units operating on an authorized route or have less than fifteen (15) units confirmed and registered for the current or immediate preceding registration year with the Land Transportation Office.
The required documents include: (1) SEC Certificate of Incorporation or CDA Certificate of Registration and OTC Certificate of Accreditation for cooperatives, (2) Management Agreement for cooperatives, (3) Latest Financial Statement, (4) Proof of Operation of Off-Street Terminal at both ends of the route, (5) Proof of Garage with LGU Zoning Clearance, (6) OR/CR of authorized units, and (7) New Format Operator's Data Sheet.
Upon approval, the existing individual CPCs are cancelled and an updated or consolidated CPC is granted in favor of the consolidated single juridical entity.
They have one (1) year from the effectivity of the Memorandum Circular to consolidate and file the petition for consolidation of their CPCs.
They must comply with vehicle types and requirements in Department Order No. 2017-011, particularly Items 2.2 (Hierarchy and Classification of Public Transportation Modes) and 5.2 (Modernization of Public Transport Services), and substitute old units with OFG-compliant units with mandated devices within three (3) months from issuance of the consolidation decision/order.
Yes. Single juridical entities holding updated consolidated CPCs may continue operating on previously authorized routes in the absence of the LPTRP or DOTr transport study but are subject to modifications as recommended by the DOTr.