Question & AnswerQ&A (MEMORANDUM CIRCULAR NO. 2018-011)
An Application for Appropriation is a mode of securing or acquiring a Certificate of Public Convenience (CPC)/ franchise, especially when the original CPC has been abandoned or expired without renewal.
A CPC is considered abandoned when the CPC holder fails to confirm their franchise before registering the authorized units with the Land Transportation Office (LTO) for two consecutive years, resulting in cancellation of the franchise.
This Memorandum Circular covers only Public Utility Buses (PUBs) nationwide. Utility Vehicle Express Service and Air-conditioned Taxi Service are to be addressed in future issuances.
CPCs and corresponding routes opened for appropriation shall be bundled in packages, and the selection of qualified applicants will follow the Premium Point-to-Point Express Bus Service project guidelines.
Operators of abandoned or expired CPCs are not allowed to apply for appropriation.
The Pre-Qualification Committee conducts the operator pre-qualification process for applications for appropriation and is composed of key officials including the Executive Director and Chiefs of several Board divisions.
An Appropriation Fee of Ten Thousand Pesos (₱10,000) per unit is collected from the selected applicants upon filing their application for appropriation.
The new CPC/franchise is granted a fresh period of five (5) years counted from the issuance of the decision on the application.
Only units compliant with the OFG shall be allowed as authorized units to facilitate smooth transition and ensure better service and safety.
There had been a suspension/moratorium on acceptance of applications for appropriation; the moratorium was lifted with this Memorandum Circular to respond to public demand and service needs.