Law Summary
Reorganization of Metropolitan Manila Bus Operators
- The initial reorganization in 1976 grouped private bus operators into four consortia plus the Metropolitan Manila Transit Corporation (MMTC) as the fifth consortium.
- Recognition of problems encountered during the formation of consortia.
Extension of the Number of Bus Consortia
- Relaxation of the limit on the number of bus consortia from four to a maximum of ten, including MMTC.
- Requirement that no single consortium or merger have fewer than 200 operating units.
Deadline and Registration Requirements
- Formal organization of consortia must be completed within one year from the date of this instruction.
- Mandatory registration of all bus operators affected as members of acceptable consortia by 21 June 1977.
- Bus units must bear identifying marks or colors by the registration deadline.
Consequences for Non-Compliance
- Non-membership in an acceptable and registered consortium can lead to withdrawal or cancellation of certificates of public convenience, franchises, permits to operate, or provisional authorities issued by the Board of Transportation.
Rationalization of Metropolitan Manila Bus Routes
- Creation of a more rational bus route network with measured capacity per route.
- Maximum of three transfers allowed for commuters from any origin to destination.
- Routes and corresponding permits or certificates of public convenience to be issued to the consortium as a whole rather than to individual members.
Study and Reform of Provincial Bus Operations
- Mandate to examine the critical situation of provincial bus operators.
- Aim to eliminate destructive competition among private operators and between private operators and Philippine National Railways.
- Objective to ensure adequate and reliable transportation services nationwide.
- Consideration of factors such as historical passenger load, commuter demand for affordable service, and government financial loans.
Financial Assistance Program for Bus Consortia
- Development of a practical and liberal financial assistance program.
- Program terms to support expansion into prescribed standard units and provide access to credit similar to that available to MMTC.
Authorization for Committee Work and Funding
- Chairman of the Committee on Bus Reorganization authorized to organize a technical secretariat.
- Power to hire or assign personnel and consultants, and to grant honoraria or allowances to secretariat members.
- Expenditures charged to the appropriations of the Department of Public Works, Transportation and Communications (DPWTC).
Official Date of Effectivity
- The instructions were issued on April 20, 1977, in Metropolitan Manila, signed by President Ferdinand E. Marcos.