Definitions
- Developmental or New Routes: New routes serving new developments with minimal overlap to existing routes.
- Existing Routes: Routes currently in operation as approved in the LPTRP.
- Local Public Transport Route Plan (LPTRP): A comprehensive plan prepared by LGUs detailing transportation routes, modes, and fleet requirements, approved by DOTr/LTFRB.
- Rationalized Routes: Existing routes modified under the approved LPTRP.
Governing Principles
- Applicable to existing, rationalized, and new routes identified in the LPTRPs.
- Encourages consolidation of existing operators per route into a single legal entity with a fleet manager for accountability.
- Preference given to existing and rationalized route operators in franchise processing, subject to requirements.
Selection Process for Operators
- Consolidation and Preference: Operators on existing routes that consolidate into legal entities can apply for franchise, submitting certified franchise award and qualification documents.
- Cooperatives receive preference under Philippine Cooperative Code (RA 9520).
- Excess Operators: Operators displaced by rationalization or affected by new transport modes prioritized for underserved or new routes with required documentation.
- Compliance Requirements: Applicants must consolidate fleets, have OFG-compliant units, and fulfill related regulatory requirements to apply for Certificates of Public Convenience (CPC).
- Open Selection: When existing operators fail to comply, LTFRB opens selection to qualified applicants with public calls detailing route and vehicle specifications, operating conditions, qualifications, and authorized fare.
- Pre-Qualification Meeting: Organized to clarify application procedures and timelines for document submissions.
- Documentation Requirements: Applicants must submit:
- Legal documents proving organizational status (sole proprietorship, corporation, partnership, or cooperative).
- Technical documents including vehicle specs, delivery schedule, AFC arrangements, and garage facilities.
- Financial documents indicating capitalization, net worth, and financial projections.
- Pre-Qualification Committee: Established to review and seek clarifications on submitted documents within seven days.
- Evaluation: Pass or fail rating on qualification criteria; complete submissions are mandatory for qualification.
- Multiple Qualified Applicants: Public lottery conducted to choose among qualified applicants.
- Notice of Selection: Issued promptly after the Committee's evaluation.
- Unit Availability and Penalties: 50% of vehicles must be operational within six months; full fleet within one year; P5,000 daily fines for non-compliance unless justifiable delay is proven.
- Issuance of Provisional Authority and CPC: Provisional Authority granted upon proof of unit availability; CPC issued when 100% of fleet is operational.
Repealing Clause
- Supersedes inconsistent prior issuances.
Effectivity
- Effective immediately upon publication in a newspaper of general circulation.
- Copies to be filed with UP Law Center per Presidential Memorandum Circular No. 11.