Consolidation of Public Transport Franchises

Section 5(b): LTFRB can issue, amend, suspend, or cancel Certificates of Public Convenience (CPC) and permits for motorized public transportation.
Section 5(i): LTFRB empowered to promulgate rules governing its proceedings and those of Regional Offices.

Individual franchise holders encouraged to unite into single juridical entities such as cooperatives or corporations.
Benefits include collective resource access, improved fleet management, efficient fare collection, and better franchise record administration.
Many transport groups have expressed willingness to consolidate for operational sustainability and profitability.

Priority in franchise issuance given to applicants consolidating into one juridical entity.
Voluntary cancellation of individual franchises permitted when converting to a single juridical entity.
Definition of "Existing Individual Franchise Holders": Those with valid franchises operating less than 1/3 of total units on a route or fewer than 15 registered units.
Required filing of Petition for Consolidation of CPCs with LTFRB specifying all individual franchise case numbers and route information.
Filings made at LTFRB Central Office for inter-regional routes or Regional Offices for intra-regional routes.

SEC Certificate of Incorporation (corporations) or CDA Certificate of Registration and OTC Accreditation (cooperatives).
Management Agreement between cooperative and members (for cooperatives).
Latest Financial Statement.
Proof of operation of off-street terminals at route ends.
Proof of garage ownership or lease with LGU Zoning Clearance.
Official receipts and certificate of registration of authorized units.
New Format Operator’s Data Sheet.

LTFRB Legal Division issues Notice of Hearing to verify jurisdiction, citizenship, financial capability, garage compliance, and public need.
Petitioner to present original copies of individual CPCs.
Upon merit, LTFRB cancels individual CPCs and grants consolidated CPC to the juridical entity.

Consolidated entities operate interim on previously authorized routes pending Land Public Transport Route Plan (LPTRP) or DOTr study.
Routes may be modified based on DOTr recommendations.
Juridical entity to designate number of units authorized to ply each route.

One-year grace period from effectiveness of Memorandum Circular for existing franchise holders to consolidate.
LTFRB may consider new CPC applications from single juridical entities on the same routes following this period.

Authorized vehicle types strictly comply with DO No. 2017-011, specifically on hierarchy/classification and modernization standards.
New consolidated CPC holders must comply within three months with vehicle specifications and install mandated devices.
Fleet management systems required to improve operational efficiency, minimize risk, and ensure regulatory compliance.

This memorandum circular takes effect immediately upon publication and mandatory filing with the UP Law Center.
It modifies or supersedes inconsistent previous issuances or parts thereof.