Republic of the Philippines Department of Transportation LAND TRANSPORTATION FRANCHISING & REGULATORY BOARD East Avenue, Diliman, Quezon City MEMORANDUM CIRCULAR NUMBER 2019-01 SUBJECT: CONSOLIDATED GUIDELINES ON THE PROCESS OF ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE (CPC) AND PROVISIONAL AUTHORITY (PA)/SPECIAL PERMIT (SP) UNDER THE OMNIBUS FRANCHISING GUIDELINES & PUBLIC UTILITY VEHICLE MODERNIZATION PROGRAM (PUVMP) WHEREAS, the Secretary of the Department of Transportation issued Department Order No. 2017-011, Re: OMNIBUS GUIDELINES ON THE PLANNING AND IDENTIFICATION OF PUBLIC ROAD TRANSPORTATION SERVICES AND FRANCHISE ISSUANCE, which adopted rules and procedures for the issuance of franchises for public transport routes and services; WHEREAS, on 13 March 2018, this Board issued Memorandum Circular No. 2018-006, entitled GUIDELINES FOR THE PUBLIC UTILITY VEHICLE MODERNIZATION PROGRAMS's INITIAL IMPLEMENTATION PURSUANT TO DEPARTMENT ORDER NO. 2017-011, OTHERWISE KNOWN AS THE OMNIBUS FRANCHISING GUIDELINES; WHEREAS, on 16 March 2018, this Board issued Memorandum Circular No. 2018-008, entitled CONSOLIDATION OF FRANCHISE HOLDERS IN COMPLIANCE WITH DEPARTMENT ORDER NO. 2017-011, OTHERWISE KNOWN AS THE OMNIBUS FRANCHISING GUIDELINES; WHEREAS, on 29 May 2018, this Board issued Memorandum Circular No. 2018-009, entitled IMPLEMENTING RULES ON SELECTION OF TRANSPORT OPERATORS FOR LGU-PREPARED LPTRPs UNDER DEPARTMENT ORDER NO. 2017-011, OTHERWISE. KNOWN AS OMNIBUS FRANCHISING GUIDELINES; WHEREAS, on June 6, 2018, this Board issued Memorandum Circular No. 2018-012, entitled GUIDELINES FOR DROPPING AND SUBSTITUTION OF PUJ UNITS UNDER THE, PUVMP; WHEREAS, on 27 June 2018, this Board issued Memorandum Circular No, 2018-013, entitled IMPLEMENTING GUIDELINES IN THE ACCEPTANCE OF APPLICATIONS FOR NEW CPC UNDER THE IMPLEMENTATION OF THE PUBLIC UTILITY VEHICLE MODERNIZATION PROGRAM; WHEREAS, in the implementation of the said issuances, which were intended to serve public clamor and demand for modern PUVs, there were issues that came up, which need to be clarified and addressed properly; WHEREAS, the purpose of this Memorandum Circular is to simplify and expedite the implementation of the PUVMP; NOW THEREFORE, premises considered, the Board hereby adopts the following consolidated guidelines and policies; -— 1) a ] Bes C spi) Dine oe ay aaeasee fn 5a. = fly Nos 426-2485 | 426-2501 2ETSTO1 I PRINCIPLES A. This Memorandum Circular applies to the selection of operator and subsequent issuance of CPC —for_—existing, — rationalized = and new/developmental/missionary/P2P fixed routes (with origin and destination and detailed route description), be they inter-regional, intra-regional, intra- provincial, inter-provincial routes and in other metropolitan areas, B. The one route-one operator-one franchise scheme under the Industry Consolidation Component of the OFG/PUVMP is encouraged. Towards this end, Applicant-Operator/s intending to serve a particular route should be a legal/juridical entity who will be collectively responsible and accountable for the delivery of transport services in that particular route. Should there be reasonable/justifiable grounds to allow more than one (1) legal entity in one (1) route, a common fleet management with organized dispatch system is required; C. Qualified existing operator/s shall retain the franchise privileges on the route they are currently plying or rationalized routes (.e., existing routes modified by the approved LPTRP or DOTr rationalization study). Qualified existing operators are those which consolidated into a single legal entity (ie, cooperative or corporation), passed the minimum legal, technical and financial requirements as defined hereunder, and satisfied pertinent requirements for consolidation; D. Should the Applicant-Operator fail to consolidate all the authorized units in an existing route, the Applicant-Operator shall present justifiable ground/s therefor for the consideration of the Board or the Regional Director concemed; E. Issuance of CPCs for new/developmental/missionary/P2P routes is open to all interested applicants but with preference to existing area-based operators. F. All qualified Applicant-Operators_ for_~=a_—_ particular new/developmental/missionary/P2P route shall be ranked according to the availability of compliant units. In case of a tie, preference shall be accorded to qualified existing area-based operators. If no existing area-based operator qualifies and a tie results in, a public lottery shall be conducted to determine which qualified Applicant-Operator shall proceed with the CPC application. VEHICLE SPECIFICATIONS, ‘A. Only Public Utility Vehicles (PUVs) with at least Euro-4 compliant engines and compliant with the vehicle specifications provided under Department Order No, 2017-011 and vehicle standards based on the Philippine National Standards (PNS) shall be accepted as authorized units. PUB | PUBs within highly urbanized independent cities, speed limiter, and and | dashboard camera (at least 24 hours of recording) compliant with LTFRB Mini-Bus B. Further, all PUVs shall be installed with OFG-required devices as follows: GNSS Receiver, Free Wi-Fi, past 72 hours of operation), Automatic Fare Collection System (AFCS) for specifications; with lay-over/garage sufficient space for all units , plus additional space of at least 30% of the total PUV space requirement ui ent ‘UV within highly urbanized independent cities, speed limiter, and [ine Ruts sor Ron dashboard camera (at least 24 hours of recording) compliant with LTFRB GNSS Receiver, Free Wi-Fi, CCTV with continuous recording of past 72 hours of operation, Automatic Fare Collection System (AFCS) for PUJs and ifichtions; with lay-over/garage sufficient space for all units, plus D MAR 15 2019) addi tional space of at least 30% of the total PUV space requirement rE Cc Tine i) Page 20f7 Ee =I APPLICANT-OPERATOR QUALIFICATION REQUIREMENTS All Applicant-Operators shall pass the following minimum qualifications before they can be considered for CPC issuance. A. Legal Qualification Filipino citizen who is at least eighteen (18) years old i, Certified true copy of Birth Certificate duly issued by the Philippine Statistics Authority (PSA); ii, Income Tax Return (ITR) duly stamped received by the Bureau of Internal Revenue (BIR) or Certificate of Registration (COR) issued by the BIR for new registrants; iii, Certificate of Business Name issued by the Department of Trade and Industry (DTI); Filipino domestic juridical entity whose purpose is to provide transportation services; If corporation or partnership including joint ventures or consortia of local firms, Certified True Copies of Certificate of Incorporation, Articles and By-Laws, and latest General Information Sheet duly received/issued by the Securities and Exchange Commission; If consortium/joint venture is not yet existing, a duly-notarized Memorandum of Agreement by and between the members that they will form a special purpose legal entity, including individual Certified True Copies of Certificate of Incorporation, Articles and By-Laws, and latest General Information Sheet duly received/issued by the Securities and Exchange Commission of each would-be consortium members, if Applicant-Operator is selected; If cooperative, Certified True Copies of Certificate of Registration, Articles and By-Laws and latest Cooperative Annual Performance Report duly issued by the Cooperative Development Authority (CDA), and Certificate of Accreditation issued by the Office of Transportation Cooperative (OTC); If not yet consolidated cooperative/corporation, evidence/proof of application for consolidation from SEC/CDA with individual affidavits of conformance/approval from members willing to have their CPCs cancelled in exchange for a single consolidated CPC in favor of the Applicant-Operator. B. Technical Qualification 1 7, Law cent! . sounesieegompliant with fare media related technical specifications as determined by AR 15 2019 . Number of compliant units available with OR/CR and undertaking that the remaining units will be made available within three (3) months as certified by the vehicle manufacturer/supplier, reckoned from the date of submission of qualification documents, If no compliant units are available, undertaking that 25% of the number of required units within three (3) months, 50% within six (6) months, 100% within nine (9) months will be delivered as certified by the vehicle manufacturer/supplier, reckoned from the date of submission of pre- qualification documents, Undertaking that the units shall be compliant with the specifications and standards under OFG and DTI-PNS as herein aforementioned; If the route applied for are not yet covered by LPTRP or DOTr rationalization study, undertaking that they will immediately comply with the approved rationalization study; When applicable, undertaking pursuant to Memorandum Circular No. 2018- 015 for lease/lease-to-own units; Fleet Management System with organized vehicle dispatch procedures; Evidence of formal arrangement with Automatic Fare Collection (AFC) service-provider that will offer inter-operable AFC service that is fully “TERB, in case the Applicant-Operator is selected; i Page 3 of 7 | ~