Question & AnswerQ&A (MEMORANDUM CIRCULAR NO. 2018-010)
The Omnibus Franchising Guidelines (OFG) is set forth by Department Order No. 011, series of 2017, by the Department of Transportation. It aims to provide 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 under the Department of Transportation (DOTr), is tasked with implementing the OFG.
The transition from existing and new franchisees must be completed within a specified three (3) year period.
The MC covers Public Utility Buses (PUBs), Mini-buses, Public Utility Jeepneys (PUJs), UV Express Services, Filcabs, School Services, Taxis, Transportation Network Vehicle Services (TNVS), Tourist Transport Services, and Shuttle Services as specified in the OFG.
The rationalization of all routes throughout the country after the transition period will result in the cancellation of all existing Certificates of Public Convenience (CPCs).
Existing operators must comply with all OFG requirements, including consolidation into a legal entity, fleet management, and having OFG-compliant units. Failure to comply renders them ineligible for new CPC applications.
Yes, existing operators may use their old units but these are subject to a roadworthiness test by the Land Transportation Office (LTO).
Operators with valid franchises expiring before LPTRP approval may file for a provisional authority valid for one year and must consolidate into a legal entity, with unit operation subject to the LTO roadworthiness test and related rules.
Displaced operators and transport industry allied workers are eligible for social support programs coordinated by DOTr with DSWD, DOLE, CHED, TESDA, and other government or non-government partners to aid in their transition.
If an operator fails to comply with OFG requirements, they are deemed ineligible to apply for a new Certificate of Public Convenience, and the rationalized route is opened to other interested applicants.