Question & AnswerQ&A (LETTER OF INSTRUCTION NO. 532)
The Secretary of Public Works, Transportation and Communications; Chairman, Committee on Bus Reorganization; Secretary of Finance; Chairman, Board of Transportation; Chairman, Development Bank of the Philippines; and President, Philippine National Bank.
The maximum number of bus consortia allowed is ten, inclusive of the government-owned Metropolitan Manila Transit Corporation (MMTC).
No single consortium or merger should account for less than 200 operating units.
The bus consortia must be formally organized not later than one year from the date of the Letter of Instruction, which is April 20, 1977.
All affected bus operators should be registered as belonging to any acceptable consortium under incorporation, and their units must bear identifying marks/colors by June 21, 1977.
Non-membership shall be a valid cause for withdrawal or cancellation of any or all certificates of public convenience, franchises, permits to operate, or provisional authority by the Board of Transportation.
A more rational Metropolitan Manila Bus route network with measured capacity by route and a maximum of three transfers from any origin to any destination must be drawn up.
The Committee is authorized to organize a working technical secretariat, hire or detail personnel or consultants, and grant honoraria or allowances to facilitate reorganization work, irrespective of existing rules to the contrary.
A study must be conducted to eliminate destructive competition and provide adequate, reliable, and affordable transport service, considering factors such as historical load factor, commuter needs, and government financial institution loans.
A practical and liberal financial assistance program is to be drawn up on terms allowing expansion into prescribed standard units and access to credit windows similar to those of the MMTC.