Guidelines on IRA Allotment Release by DBM

The order is issued by the President by virtue of powers vested in her by law and signed by Gloria Macapagal-Arroyo.
Alberto G. Romulo, as Executive Secretary, countersigns the Memorandum Order by authority of the President.
The order identifies OTC as an attached agency of the Department of Transportation and Communications.
The order ties implementation to DILG through the Bureau of Local Government Development (BLGD) under Section 1.

The order recognizes that tricycles are vital for passenger movement, particularly in remote areas or subdivisions where other modes do not serve the public.
The order references concerns that the Philippine Clean Air Act (Republic Act No. 8749) affects the tricycle sector and may threaten workers’ livelihood.
The order directs that tricycle operations be converted into transport service cooperatives to make them eligible for government projects/programs designed for the poor and marginalized sectors.
The order frames conversion as a practical vehicle for self-reliance, people power, and the attainment of economic growth, development, and social justice.

Executive Order No. 898 (series of 1983) is invoked to establish OTC’s mandate to promote the growth and development of transportation cooperatives as a vehicle to uplift the socio-economic condition of workers in the transport industry, particularly drivers.
DILG Memorandum Circular No. 2002-35 dated March 7, 2002 is cited as supporting the conversion of tricycle associations into transport service cooperatives and the role of local Paradahan, Pook Sakayan (KPPS) projects.
The order relies on DOTC/OTC as lead implementer with coordination through DILG/BLGD under Section 1.

Section 1 directs DOTC through OTC to enhance and intensify the voluntary conversion of tricycle operation/associations into transport service cooperatives.
Section 1 requires DOTC/OTC to act in close coordination with DILG through BLGD.
Section 1 requires the agencies to include in their regular plans and programs the conversion of tricycle associations into transport service cooperatives.
The order specifies that conversion is pursued for other purposes consistent with the objectives stated in the order.

Section 2 authorizes DOTC through OTC to call upon any Department, Bureau, or Office for assistance it may require to perform its functions and attain the order’s objectives.
The assistance power under Section 2 is broad across Departments, Bureaus, and Offices for implementation support.

Section 3 enjoins collaboration from the private sector, particularly:
- the National Union of Transportation Cooperatives, and
- the National Federation of Tricycle Operators and Drivers Associations.
Section 3 frames private-sector commitment and coordination as part of the joint effort to support the conversion initiative.

Section 4 provides that the Memorandum Order shall take effect immediately.