Fundamental Principles of the Transition Period
- All existing routes will be rationalized after the transition period, resulting in cancellation of all existing Certificates of Public Convenience (CPCs).
- Operators must comply with key OFG requirements: consolidation into a legal entity, fleet management, and possession of OFG-compliant units.
- Non-compliance results in ineligibility to obtain new CPCs; rationalized routes will be open for new applicants.
- Incentives like extended franchise validity may be granted to compliant operators.
Transition Mechanism for Existing Franchises with Approved LPTRP
- Operators may continue operating under old individual franchises before consolidating into legal entities.
- Use of old vehicle units allowed subject to road-worthiness certification by the Land Transportation Office (LTO).
- Operators may file Petitions for Dropping and Substitution (DS) under specified Board Resolutions and Memorandum Circulars.
Transition Mechanism for Existing Franchises without Approved LPTRP
- Operators with expiring franchises before LPTRP approval may apply for a one-year Provisional Authority (PA).
- They must consolidate into legal entities.
- Vehicle units remain subject to road-worthiness and substitution rules as above.
Procedures for New Franchise Applications under Approved LPTRP
- New franchise applications must comply with LTFRB Memorandum Circular No. 2018- and rules for selecting transport operators in LGU-prepared LPTRPs pursuant to the OFG.
Social Support Mechanisms for Displaced Operators and Workers
- Displaced public transport operators, drivers, and allied workers qualify for social support programs.
- Social programs are coordinated by the DOTr in partnership with DSWD, DOLE, CHED, TESDA, and other potential partner agencies or NGOs.
- Details of programs will be elaborated through Memoranda of Agreement between DOTr and partner agencies.
Authority for Additional Terms and Restrictions
- DOTr and LTFRB retain the power to impose further terms, restrictions, or limitations necessary to enforce OFG policies.
Repealing Clause
- All previous inconsistent issuances are deemed modified or superseded by this Memorandum Circular.
Effectivity Clause
- This Memorandum Circular takes effect fifteen (15) days after publication in at least one newspaper of general circulation.
- Compliance with UP Law Center filing requirements under Presidential Memorandum Circular No. 11 is mandated.