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WHEREAS, the Department of Transportation (“DOTr”) issued Department Order No. 011,  series  of 2017,  otherwise  known  as the Omnibus  Guidelines  on the Planning and Identification of Public Road Transportation Services and Franchise Issuance or Omnibus Franchising Guidelines (“OFG”), which aims to provide a reliable, safe, accessible, environment-friendly, dependable, efficient, and comfortable public road transportation throughout the country;

WHEREAS,  the  Land  Transportation  Franchising  and  Regulatory  Board (“LTFRB” and/or “Board”), a sectoral agency of the DOTr, is tasked to implement the OFG;

WHEREAS,  Section  5  of  Executive  Order  No.  202  mandates  the  LTFRB  “to prescribe  and  regulate  routes  of  service,  economically  viable  capacities  and zones or areas of operation of public land transportation services provided by motorized vehicles in accordance with the public land transportation development plans and programs approved by the Department of Transportation and Communications” and  “to  formulate,  promulgate,   administer,  implement  and enforce rules and regulations on land transportation public utilities, standards of measurements  and/or  design,  and rules and regulations  requiring  operators  of any public land transportation service to equip, install and provide in their utilities and in their stations such devices, equipment facilities and operating procedures and techniques as may promote safety, protection, comfort and convenience to persons  and  property  in  their  charges  as  well  as  the  safety  of  persons  and property within their areas of operations”;  and “to perform such other functions and duties as may be provided by law, or as may be necessary, or proper or incidental to the purposes and objectives of this Department Order”;

WHEREAS, the following Guidelines for the Public Utility Vehicle (“PUV”) Modernization Program's Initial Implementation are hereby promulgated:

I. COVERAGE

1. This  Memorandum  Circular  (“MC”)  shall  set  the  guidelines  for  the  initial implementation  of the PUV Modernization  Program pending the completion and   approval   of  the   route   rationalization   studies   and/or   Local   Public Transport Route Plans (“LPTRPs”) pursuant to Item 3.2.4 of the OFG.
   
   
2. The Program shall first be implemented in route/s as determined by the Land Transportation  Franchising  and  Regulatory  Board-Regional  Directors (“LTFRB-RDs”)  in coordination  with  the Department  of Transportation  and the Local Government Units (“LGUs”) concerned. The route/s shall be limited to PUJ operations.
   
   
3. The Board shall issue the Certificate of Public Convenience (“CPC”) for inter- regional  routes  while  those  routes  considered  as  intra-regional  shall  be within the responsibility  of the concerned  Regional  Franchising  and Regulatory Office (“RFRO”).

II. GUIDELINES FOR INITIAL IMPLEMENTATION

The following shall be the guidelines for the Program’s initial implementation with the corresponding duties and responsibilities of the LTFRB Offices concerned:

1. Identify  developmental  route/s  (i.e.,  fixed  route/s  with  definite  origin  and destination)  which  may  include  missionary  route/s  and  route/s  servicing special areas such as industrial zones and university complex. The said fixed route/s  shall  be  designed  such  that  overlaps  with  existing  routes  do  not exceed 25% of the length of any of the affected routes pursuant to Item 2.4 of the OFG.
   
   
2. Conduct surveys within the identified route/s.
   
   
3. Coordinate with the concerned LGU with respect to passenger demand and its Comprehensive Land Use Plan.
   
   
4. Recommend the identified route/s to the Board for endorsement to the DOTr, through  the  Office  of  the  Undersecretary  for  Road  Transport  and Infrastructure.
   
   
5. Provide franchise inventory to the DOTr upon the latter’s request.
   
   
6. Upon receipt of the route authorization from the DOTr, the concerned LTFRB Office shall process application for issuance of new CPC under the PUV Modernization Program. Interested applicants shall submit the following requirements:
   
   a.   Proof of consolidation;
   b.   Route description and length;
   c.   Number of units;
   d.  Vehicle specifications as prescribed under the OFG and the Philippine National Standards issued by the Department of Trade and Industry and delivery schedule as certified by the supplier;
   e.   Garage and terminal specifications as provided for by the OFG;
   f.     Supporting documents  to show capability for GNSS receiver, free Wi-Fi access,  CCTV,  Automated  Fare  Collection  System,  speed  limiter,  and dash camera;
   g.   Fleet  management  with  proposed  headway  during  peak  (6A.M-8A.M. and 5P.M.-7P.M.) and off-peak hours;
   h.   Financing scheme or package, if any;
   i.    Safety requirement compliance; and
   j.     Proposed fare.
   
   Existing  operators  who consolidated  into a single legal entity and with the above-required shall be given preference.
   
   
7. Upon notice, hearing and evaluation, issue a Notice of Selection (“NOS”) to the applicant. Within three (3) months from the issuance of the NOS, 100% of  the  authorized  units  must  be  made  available,  after  which,  the  CPC  is issued.  Failure  of  the  applicant  to  make  available  the  units  within  the prescribed  period  without  justifiable  cause,  a  fine  of  P5,000.00  shall  be imposed for every day of delay.
   
   
8. As the OFG-compliant  units are made available  and upon application,  the concerned LTFRB Office shall issue a Special Permit (“SP”) while processing of the CPC is still ongoing.

III. REPEALING CLAUSE

All other  issuances  inconsistent  herewith  are deemed  modified  or superseded accordingly.

IV. EFFECTIVITY

This  Memorandum   Circular  shall  take  effect  fifteen  (15)  days  following  its publication  in at least  one  (1) newspaper  of general  circulation.  Let  three  (3) copies   hereof   be  filed  with  the  UP  Law  Center   pursuant   to  Presidential Memorandum Circular No. 11, dated 09 October 1992.

SO ORDERED.
Quezon City, Philippines, 13 March 2018

(SGD) ATTY, MARTIN B. DELGRA, III (ON LEAVE) Chairman
(SGD) ENGR. RONALDO F. CORPUS Board Member	(SGD) ATTY. AILEEN LOURDES A. LIZADA Board Member
Attested by:
(SGD) ATTY. CARL SHA JEMIMAH F. MARBELLA Officer-in-Charge Office of the Executive Director