Question & AnswerQ&A (MEMORANDUM CIRCULAR NO. 2018-006)
The OFG aims to provide a reliable, safe, accessible, environment-friendly, dependable, efficient, and comfortable public road transportation throughout the Philippines.
The Land Transportation Franchising and Regulatory Board (LTFRB), a sectoral agency of the Department of Transportation (DOTr), is tasked to implement the OFG.
The LTFRB is mandated to prescribe and regulate routes, economically viable capacities, and zones of operation for public land transportation services, formulate and enforce rules related to standards, safety, and operating procedures, and perform other functions necessary to achieve the objectives of the Department of Transportation's land public transport development plans.
The MC covers the initial implementation of the Public Utility Vehicle (PUV) Modernization Program pending the completion and approval of route rationalization studies and Local Public Transport Route Plans (LPTRPs). It applies first to route/s determined by LTFRB Regional Directors in coordination with DOTr and Local Government Units, specifically limited to PUJ (Public Utility Jeepney) operations.
Applicants must submit proof of consolidation, route description and length, number of units, vehicle specifications compliant with OFG and Philippine National Standards, garage and terminal specifications, documents showing capability for GNSS receiver, free Wi-Fi, CCTV, Automated Fare Collection System, speed limiter, and dash camera, fleet management plan for peak and off-peak hours, financing scheme if any, safety compliance, and proposed fare.
Existing operators who consolidate into a single legal entity and meet the required documents and standards shall be given preference in the application process.
Within three (3) months from the issuance of the NOS, 100% of the authorized units must be made available. Failure to comply without justifiable cause incurs a fine of P5,000 for every day of delay.
The MC takes effect fifteen (15) days after its publication in at least one newspaper of general circulation. All other issuances inconsistent with this MC are deemed modified or superseded accordingly.