Question & AnswerQ&A (MEMORANDUM CIRCULAR NO. 2018-009)
The Land Transportation Franchising and Regulatory Board (LTFRB), a sectoral agency of the Department of Transportation (DOTr), is responsible for implementing the OFG.
LPTRP refers to a plan detailing the route network, mode, and required number of units per mode per route for delivering public land transport services. It is prepared by Local Government Units, approved by the Department/ LTFRB, and serves as the basis of a comprehensive local transport plan.
The Memorandum Circular applies to existing, rationalized, and new/developmental routes identified in the LPTRPs.
Developmental or New Routes are routes designed to serve new residential, commercial, and other land use developments, with at most 25% overlap in length with existing routes, subject to allowed exceptions.
Existing operators serving a particular route, when organized into a single legal entity, shall have preference in the franchise processing for existing and rationalized routes, subject to franchise requirements and specifications.
Operators must submit a certified true copy of the franchise award duly issued by the LTFRB and Qualification Documents which include legal, technical, and financial qualifications as specified in the Memorandum Circular.
The LTFRB will impose a daily fine/penalty of Five Thousand Pesos (P5,000.00) on operators who fail to comply with this timeline.
The Pre-Qualification Committee, created by the concerned Regional Franchising and Regulatory Office, examines the Qualification Documents within seven days after submission, seeks clarifications, makes inquiries to verify documents, and rates applicants on a PASS or FAIL basis.
If multiple applicants are qualified, the final selection is determined through a public lottery held in the presence of all concerned parties.