REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF TRANSPORTATION

-DEPARTMENT ORDER NO. _________

SUBJECT : REVISED GUIDELINES ON IMPLEMENTATION OF THE PUBLIC UTILITY

VEHICLE MODERNIZATION PROGRAM

DATE : __________ 2023

WHEREAS, Executive Order 125-A and Administrative Order 202, s. 1987, consistent with
the national government policy, authorize and promote adequate, safe, reliable, efficient, and
environment-friendly Public Utility Vehicles (PUVs);

WHEREAS, public road transport services nationwide should be provided in a timely,

sufficient, cost-effective, and reliable manner;

WHEREAS, the Department recognizes the need to depart from the long-standing exclusive
reliance on private sector initiative in serving local road transport requirements that are
processed by the Land Transportation Franchising and Regulatory Board (LTFRB) without
the benefit of local public transport plans based on local mobility requirements;

WHEREAS, it is the Department's policy that a local-level public transport planning approach,
in line with the decentralization envisioned by Republic Act (R.A.) 7160 or The Local
Government Code of the Philippines (LGC), will, in the longer term, be more effective in
determining local public transport services;

WHEREAS, Section 17 of the LGC further provides that LGUs, particularly in cities, shall
endeavor to provide adequate, effective, and efficient transportation facilities that would
provide access and mobility for its people to pursue socio-economic activities, as reflected in
its Comprehensive Land Use Plan (CLUP);

WHEREAS, the Department recognizes the subsidiarity principle that LGUs are in a better
position to identify local public transport service requirements and formulate plans for
improving connectivity between and among their urban and rural socio-economic activities, in
the province and the region that they are a part of;

NOW THEREFORE, I, JAIME J. BAUTISTA, Secretary of the Department of Transportation,

by virtue of the powers vested in me by law, hereby order that the following rules and
procedures on the issuance of franchises for public transport routes and services be hereby
adopted:

1. DEFINITION OF TERMS

1.1. Alternative Fuel Vehicles/Engines - vehicles/engines that use alternative

fuels such as biodiesel, bioethanol, natural gas, electricity, solar, hydrogen,
and automotive LPG, instead of gasoline and diesel.

1.2. Arterial Roads - roads that provide the highest level of service forlongest
uninterrupted distance, with some degree of access control. They may be
highways and be circumferential or radial in form. These roads deliver traffic
from collector roads to other arterial roads and expressways.
 1.3. Certificate of Public Convenience (CPC) - permit issued by the LTFRB for
the operation of road transportation services for public use.

1.4. Collector Roads - roads that provide a less highly developed level of service
at a lower speed for shorter distances. Their function is to collect traffic from
local roads and connect them to arterial roads.

1.5. Comprehensive Development Plan (CDP) - the action plan prepared by a

local government to develop and implement priority sectoral and cross-sectoral
programs and projects in the proper locations gradually and incrementally, until
the desired shape or form of development is eventually attained.

1.6. Comprehensive Land Use Plan (CLUP) - the plan for long term management
of the local territory, identifying areas where development can and cannot be
located and directing public and private investments accordingly.

1.7. Comprehensive Local Transport Plan (CLTP) - a detailed plan addressing

the mobility needs of both people and freight, describing policies and programs
for the operation, management, improvement, maintenance, and best use of
resources for the delivery of high quality transport services.

1.8. DENR - the Department of Environment and Natural Resources.

1.9. Department - the Department of Transportation.

1.10. Developmental Routes - routes designed to serve new residential,

commercial, and other land use developments

1.11. Expressways - highways with limited access, normally with interchanges; may
include facilities for levying tolls for passage in an open or closed system.

1.12. Garage/Depot an off-street area where public utility vehicles are stored or
parked while not in operation and where repair or maintenance works are done.

1.13. Hop-on Hop-off - a type of tourist transport service that stops to load and
unload passengers, and which caters to a network of tourist destinations.

1.14. IRIP - Inter-regional and inter-provincial routes are routes usually traverse
national roads which its Origin and Destination encompasses one or more
regions. This route is usually plied by higher PUV modes.

1.15. Land Transportation Franchising and Regulatory Board (LTFRB) - the

Board composed of the Chairman and two (2) commissioners, created by
virtue of Executive Order (E.O.) 202, series 1987 under the Department.

1.16. Local Government Units (LGUs) - city, provincial, and municipal

governments, or agencies or authorities responsible for special economic
zones or administrative regions.

1.17. Local Public Transport Route Plan (LPTRP) - a plan detailing the route
network, mode, and required number of units per mode for delivering public
land transport services. It also includes the frequency of dispatch/headway,
location of stops and other transport facilities. This is prepared by Local
Government Units and endorsedby the Department for final approval by the
 LTFRB. This plan shall serve as the basis of a comprehensive local transport
plan and the issuance of the CPCs by the LTFRB.

1.18. Local Roads - roads not defined as arterial or collector. They primarily provide
access to land with little or no through movement.

1.19. Loop service - a continuous service with a specific route structure within a
defined zone which includes, but is not limited to, industrial parks, economic
zones, school campuses, and emerging business districts. These routes shall
start and terminate at an off-street terminal.

1.20. Metro Manila Urban Transport Integration Study Update and Capacity
Enhancement Program (MUCEP) Study Area - area consisting of the sixteen
(16) cities (Caloocan, Las Pinas, Makati, Malabon, Mandaluyong, Manila,
Marikina, Muntinlupa, Navotas, Pasay, Pasig, Pararaque, Quezon City, San
Juan, Taguig, and Valenzuela) and one (1) municipality (Pateros) of Metro
Manila and identified cities and municipalities in its adjoining provinces
(Bulacan, Rizal, Laguna, and Cavite) that constitute the geographical coverage
of the MUCEP research.

1.21. Operator - a holder or grantee of a valid and subsisting CPC issued by the
LTFRB.
1.21.1. One-Person Corporation (OPC) - a corporation with a single stock
holder. Provided, that only a natural person, trust, or an estate may
form a one-person corporation (Section 116 Revised Corporation
Code)
1.21.2. Corporation - an artificial being created by operation of law, having
the right of succession and the powers, attributes, and properties
expressly authorized by law or incidental to its existence (Revised
Corporation Code)
1.21.3. Cooperative - is a duly registered association of persons with a
common bond of interest, who have voluntarily joined together to
achieve a lawful common social or economic end, making equitable
contributions to the capital required and accepting a fair share of the
risks and benefits of the undertaking in accordance with the universally
accepted cooperative principles (Republic Act 6938)

1.22. Point-to-Point (P2P) Bus Services / Express Buses - bus services using
mini- coaches or coaches providing direct services from origin to destination
without boarding or alighting passengers in between.

1.23. Public Transport Planning - the professional discipline responsible for

developing public transport systems. It is a hybrid discipline involving aspects
of geography, social sciences, transport engineering, and urban planning.

1.24. Public Utility Buses (PUBs) - air-conditioned and/or non-air-conditioned

coaches used as Public Utility Vehicles and classified as mass transit system,
further classified in Section 2.2.

1.25. Public Utility Jeepneys (PUJs) - Public Utility Vehicles that are used as
feeder services to mass transit systems such as buses, BRT and rail transport,
and further classified in Section 2.2.

1.26. Public Utility Vehicles (PUVs) - vehicles that carry passengers and/or cargo
for a fee, offering services to the public, which may include, but are not limited
 to, UV Express Service, PUBs, PUJs, TNVS, Filcab (PUJ Class 1) and Taxis.
Further classifications are provided in Section 2.2.

1.27. Refurbished or Rebuilt Vehicles - used and/or pre-registered vehicles with

used/new/remanufactured chassis and engine/motor, with upgraded body
designs, braking systems, and/or safety devices meeting public safety and
emission standards.

1.28. Route - a path with defined starting and ending points that a public
transportation unit is authorized to operate, as defined in the unit's CPC.

1.29. Service Plan -

1.30. Safety Officer - a person tasked to ensure the suitability of vehicles in

operation whose responsibilities include, but are not limited to, the regular
monitoring of a vehicle's safety features, assessing a driver's fitness and
capability to drive, and conducting safety trainings.

1.31. School Services - Public Utility Vehicles providing services to students and
school officials from school vicinities to residences and vice-versa, and issued
authority on the basis of a valid contract with, or authorization from, a school,
and further classified in Section.

1.32. Stops - are strategically located points or areas within an authorized route that
are officially designated and allocated for pick-up and drop-off of passengers.

1.33. Terminal - off-street area where passengers board and alight, usually located
at the start and at the end of a route.

1.34. Transfer Area - an area, hub,or facility where two (2) or more routes meet,
enabling passengers to connect or transfer to other routes or modes.

1.35. Transport Network Company (TNC) - an organization whether a corporation,

partnership, or sole proprietor that provides pre-arranged transportation
services for compensation using an internet-based technology application or
digital platform technology to connect passenger with drivers using their
Transport Network Vehicle Service (TNVS).

1.36. Transport Network Vehicle Service (TNVS) - a Public Utility Vehicle

accredited with a Transport Network Company(TNC), which is granted
authority or CPC by the LTFRB to run a public transport service using an
internet-based technology application or digital platform.

1.37. Transport Planning - the process of defining future policies, goals,

investments, services, facilities, and designs to prepare for the expected
mobility requirements of people and/or goods.

1.38. Turning Point - route ends; zone centroids, road network or turn back systems
(except for loop-type services) where Public Utility Vehicles are allowed to
maneuver to resume operation and where transfer services are normally
available.

1.39. Utility Vehicle (UV) Express Service - a form of paratransit system which
uses air conditioned utility vehicles or vans that ferry passengers directly from
an authorized origin and destination. They may pick-up (load) and/or drop-off
 (unload) their passengers within two (2) kilometer radius from their end points
specified in their CPCs or within the territorial bounds of the commercial /
business district specified therein.

1.40. Zoning Map - the duly authenticated map defining divisions of different
planned land uses and regulations of land into zones in a city/municipality. It is
a graphical translation of the regulations to efficiently carry-out the
presumptions of the Zoning Ordinance. For purposes of accountability, the
zoning map shall be provided with transparent overlay(s) depicting critical
information that the users/public should know, e.g., fault lines, subsidence
areas, protected areas, and others.

1.41. Zoning Ordinance - written regulation and law that define how property in
specific geographic zones can be used. The Zoning Ordinance is a legally
binding set of rules and regulations affirming the usage of land in a
city/municipality.

2. SCOPE AND COVERAGE

This issuance shall only cover fixed route Public Utility Vehicle (PUV) operations or
services provided by (a) bus, (b) minibus, (c) PUJ, (d) UV Express, and (e) filcab (PUJ
Class 1).

3. PRINCIPLES

The Department shall reduce reliance on private vehicle use and move toward
environmentally-sound mobility solutions, and shall develop and promote high quality
public transportation systems, including non-motorized transport, and ensure to
prioritize the movement of people and goods, rather than vehicles. Pursuant to this,
the Department shall promulgate, administer, enforce, and monitor compliance of
public land transportation policies, laws, and regulations which promote mobility as a
basic human need.

Road public transport throughout the country shall be delivered in a manner which is
reliable, safe, accessible, environmentally friendly, efficient, comfortable, and
governed by the following principles:

3.1. Comfort. The vehicle is fitted with comfortable seats where passengers are
able to relax, rest, and be productive during the journey, through the provision
of Wi-Fi access in highly urbanized areas. For PUVs that permit standing
passengers, the number of standing passengers must not exceed five (5)
persons per square meter of the available standing space; the capacity, both
seating and standing capacity, shall be included in the PUV markings.

3.2. Accessibility. People-mobility shall be prioritized over vehicle-mobility to

achieve inclusive mobility and accessibility. With that, public transport services
must be available in every community, and last mile connectivity be ensured
through efficient walkways and bikeways. All transport vehicles and
infrastructure should be compliant with Batas Pambansa 344 and its
Implementing Rules and Regulations as well as more generally the universal
accessibility design concept and accessibility principle for all segments of
society, including senior citizens and persons with disabilities.
 Further, public transport must be predictable in terms of waiting time, and
schedule. Commuters will benefit from a fixed dispatch time and short intervals
between vehicles especially during peak demand hours and peak demand
periods, as they need not wait long for the next PUV to arrive. Operating hours
and dispatch schedules for a route shall also be responsive to the needs of
commuters, tourists, night students, and workers who require late night travel.

3.3. Safety. All vehicles and services shall comply with national standards and
international vehicle safety conventions, and equipped with safety and security
equipment to monitor and deter traffic violations and criminal activities.
Boarding or alighting from PUVs should only be in designated PUV stops of the
local government units (LGUs) in coordination with the LTFRB, which shall be
compliant to transit facilities design guidelines to be issued by the
Department.

3.4. Sustainability. Public transport vehicles shall make use of clean and energy-
efficient transport technology or fuels. Technologically responsive and
applicable standards for vehicle emissions will be pursued.

3.5. Affordability. A just and reasonable fare shall be determined assuring

operators of sufficient profit or return of investment for continued successful
and adequate operation, and the public users of affordability, adequacy,
uniformity, and equality. Fare collection shall be based on distance or service
area as authorized by the LTFRB.

4. PROCEDURAL GUIDELINES

4.1. Route Network and Service Planning

4.1.1. Criteria for Rationalization

The establishment of public transportation route networks shall be

based on mobility demand patterns and shall ensure connectivity of
routes and complementation of different transport modes. The
corresponding modes of services shall consider first the mobility
demand and characteristics, the functions and hierarchy of roads,
then, the transport facilities and connectivity, and, lastly, the route
distance.

The service requirement for the following modes of transport shall

apply:

Modes Services Required

Filcab (PUJ Class 1) Pick-and-drop
PUJ
Minibus
Bus

UV Express Point-to-point
 Premium Point-to-Point Bus Point-to-point
Limited stop

Exceptions to policies enumerated below may be granted if an

application for the same is expressly submitted in writing supported
by data and results gathered through a conduct of transport survey or
study. The LGU shall indicate in their Local Public Transport Route
Plan (LPTRP) the justification for the exceptions, and reiterate the
same in the transmittal of the plan for review. For routes in the plans
handled by the Department, the recommendation shall be in
coordination with the LTFRB. The DOTr shall then grant the exception
and include the same in the Notice of Compliance (NOC) to be issued
as well as the Memorandum Circular (MC) to be released opening the
routes for issuance and amendment of Certificates of Public
Convenience (CPCs) by the LTFRB.

4.1.1.1. Hierarchy of Modes

Higher capacity modes shall be preferred but shall give

consideration to the land use patterns of urban areas,
economic viability, and complementarity, among others.
The hierarchy shall be set as follows, for road transport,
from the public transport system of highest capacity:

a. Public Utility Buses

b. Public Utility Minibuses
c. Public Utility Jeepneys and UV Express
d. Filcabs (PUJ Class 1)

As a general rule, assigning higher capacity modes to

routes currently traversed by lower capacity modes in the
route plan may be allowed, but not otherwise unless the
economic viability of the service will be compromised as
provided in the approved route plan.

The operation of tricycles shall be in accordance with Joint

Memorandum Circular No. 1, Series of 2008 of the
Department of the Interior and Local Government (DILG)
and the Department (then Department of Transportation
and Communications or DOTC), which states that tricycle
operation should only be confined along city or municipal
roads, not along national roads and is limited only to routes
not traversed by higher modes of public transport.
However, the local Sanggunian, through an Ordinance,
may allow it if there are no alternative routes.

4.1.1.2. Passenger Demand Patterns and Characteristics

The following passenger mobility demand is recommended

to be served by the following fixed route modes:

Mode Demand
 (pphpd)
Public Utility Bus 5,001 and up
Public Utility Minibus 1,001 to 5,000
Public Utility Jeepney 501 to 1,000

UV Express 501 to 1,000

Filcab (PUJ Class 1) 500 or less

The above passenger mobility demand (pphpd) will be

updated based on the service plan.

The assignment of higher mode for routes with lower

demand may be permitted. Meanwhile, assignment of
lower modes for routes with higher demand may be
permitted if there are sections of the route that have limited
road space or width capacities that discourage/prevent
normal operations of the recommended mode per above
provisions.

4.1.1.3. Functions and Hierarchy of Roads

For major arterial roads, highways, and expressways,

buses and minibuses are the prescribed mode for public
transport. PUJs and UV Express in Highly Urbanized areas,
prescribed to provide as feeder services, may operate in
arterial roads, collector, and local roads, linking
communities to mass transit lines.

On the other hand, Filcabs (PUJ Class 1) are

recommended to be operating in intra-zonal services (i.e.
zones as defined in the Zoning Ordinance by the LGU), but
may also provide services in intra-LGU routes in case of
non-substantial demand for PUJs.

However, Filcabs (PUJ Class 1), PUJs, and UV Express

may be allowed to operate along the major corridors
provided that they will not directly compete with higher
modes of transport service.

Lower modes may operate on minimal portions of the

corridor to be traversed by higher modes for the purpose of
providing intermodal transfers, so long as such purpose is
indicated in the relevant route plan. In cases of overlapping
services of lower and higher modes in the majority of the
concerned route sections to provide alternative services,
stops for each route and mode shall be differentiated.

4.1.1.4. Transport Facilities and Connectivity

All provincial routes, as designated by the approved route

plan, bound for metropolitan areas, shall be modified and
have destinations only up to the integrated terminal
 exchanges (ITX), where available. Point-to-point buses
which operate within the MUCEP Area may opt not to use
the ITX, depending on the results of the study for the route
plans.

Emphasis shall be given to connectivity of transportation

between and among cities and municipalities considering
the volume of passengers, as well as the inter-modality of
transport services.

4.1.1.5. Maximum Distance

PUJ, Filcab (PUJ Class 1), and UV Express routes shall

have the following maximum distances:

Route coverage PUJ, UV Express

including
PUJ Class 1
Routes within 15 km 20 km
Metropolitan Manila
Routes originating from 35 km 35 km
Metropolitan Manila and
terminating in adjacent
provinces within MUCEP
Routes within Highly 20 km 35 km
urbanized cities,
independent component
cities, and component
cities, and municipalities
outside of Metropolitan
Manila
Routes within Inter- 35 km 100 km
regional, inter-provincial, (subject to route
and Intra-provincial rationalization
and service
plan with higher
modes)

For loop services of PUJ and Filcab (PUJ Class 1), the loop
length shall be covered by similar restrictions.

Mini-bus and bus service routes shall have no maximum

distance required.

The assignment of lower modes even for routes exceeding

the maximum distance indicated above may be granted if
any of the following condition is satisfied:

a. The passenger mobility demand between the applied

routes is not substantial to assure profitable operations
 (i.e. not falling within the range of demand indicated in
3.1.1.2);
b. Existing services/supply cannot meet the passenger
demand;
c. The absence of an available terminal (i.e. off-street
terminal or an available land area designated as interim
terminal) between route ends;
d. The presence of route sections, as enumerated in the
plan, with limited road space or width capacities
discouraging normal operations of higher modes; and
e. Other conditions that may be provided by the LTFRB in
another Circular.

4.1.2. Capacity-Building

4.1.2.1. The Department shall set guidelines and criteria for route
planning in item xx.

4.1.2.2. The Department, through linkages with relevant national

government agencies (NGAs), academe, and
development agencies, shall help build capacities of local
governments and metropolitan authorities to prepare
LPTRPs and consequently, Land Transportation Plans
(LTPs).

4.1.2.3. The Department may provide capacity development

assistance to LGUs to establish their respective LPTRPs
as it may deem necessary.

4.1.3. Route Plan Formulation

4.1.3.1. Local Public Transport Route Plan

The LPTRPs shall identify the services that are required

within the LGU’s area of responsibility. All LPTRPs
submitted by LGUs shall be consistent with their
respective plans embodied in their Comprehensive
Development Plan (CDP), Comprehensive Land Use Plan
(CLUP), Zoning Ordinance and Zoning Map.

a. City and municipal governments shall be

responsible for collecting data, analyzing public
transport supply and demand, and identifying specific
public transport supply gaps for travel within their
territories.

b. Provincial governments shall be responsible for

collecting data, analyzing public transport supply and
demand, and identifying specific public transport
supply gaps for travel between component cities and
municipalities, and routes from adjacent highly
urbanized city or independent component city to the
province.
 In case there is an urgent need to augment public
transportation service, and the LGU is yet to be ready to
take on the responsibility for public transport route planning
in its domain, or an approved LPTRP is not yet available,
the Department, through the LTFRB, can conduct an initial
study and determine the new routes or additional units for
approval of the Department before CPCs shall be issued by
LTFRB.

All recommendations for new routes or additional units

pending the approved LPTRP shall be accompanied by a
favorable recommendation from the LGUs which have
jurisdiction over the route planning in the area that the route
will traverse.

4.1.3.2. Route Rationalization Plan

On the other hand, the identification of public transport

supply gaps and planning of complex route networks shall
be the responsibility of the Department.

The Department shall be specifically in-charge of the

following:

a. Routes between highly urbanized cities (HUCs);

b. Inter-provincial routes;
c. Inter-regional routes; and
d. Inter-zonal routes in the Metro Manila Urban
Transportation Integration Study (MMUTIS) Update
and Capacity Enhancement Project (MUCEP) Area.

4.1.3.3. Minimum Components

a. Inventory of Existing Routes

List and map of existing intra-LGU public transportation

routes and services, including assessment of current
performance, shall be in the plan, with the following data
per route:
● Route name. A general route name shall be
used in cases of redundant routes in the records.
● Route length. For accuracy, route length should
be based on the shapefile of the determined
route.
● Route structure descriptions, with specific street
and barangay names. A note shall be provided if
the structure being followed varied greatly
among units concerned.
● Mode (indicate if point-to-point or pick-and-drop,
if bus). Actual services being provided shall be
noted.
● Passenger volume or demand
● Number of existing authorized unit/s (NAU). To
be checked with the existing database of the
concerned LTFRB RFRO.
 ● Number of actual operating units (NOU)
● Number of total trips per route of all operating
units, during peak hour, or on the average per
day.
● Number of operating hours
● Estimated travel time from origin to destination,
during peak hour, or on the average per day.
● Average Terminal Waiting Time (peak, off-peak,
and night-time)

The LTFRB shall, on the other hand, develop an online

database of authorized public transportation services, by
region, route, and type of service, which shall be among
the reference materials of the LGUs and other partners
in route planning.

b. Inventory of available transport facilities

To ensure connectivity, convenience, safety and

responsiveness to the needs of the vulnerable members
of the society, the plan shall include information on
location of transport infrastructure support facilities, i.e.,
park and ride, bicycle lanes, parking terminals, loading
and unloading areas, ITX, pedestrian walkways, and
other transport infrastructure, i.e., airports, ports, and
railways, as applicable. It shall also include the status of
the said transport facilities in terms of the needs of public
transport users and compliance with the existing
regulations.

c. Proposed Routes

List and map of proposed public transportation routes

should be in the plan. The following information shall be
summarized in a table:
● Proposed route name
● Proposed route length
● Proposed route structure descriptions, with
specific street and barangay names
● Proposed locations of loading and unloading
stations which shall be coordinated with the
concerned LGUs
● Proposed mode (indicate if point-to-point or pick-
and-drop, if bus)
● Passenger volume and passenger per hour per
direction (pphpd)
● Proposed fleet size (FS). The FS for a particular
route shall be based on the actual computation
based on demand and service plan (results) in
the respective route plan, including a maximum
of 15% contingency units to be used during
downtime or maintenance of units, rounded off to
the nearest whole number.
● Proposed headway and frequency per hour
● Number of operating hours (NOH)
 ● Operating period

Justifications to Item 4.1.1.1xx to 4.1.1.5, shall also be

included in the plan, as deemed necessary.

Both plans may include modifications on existing routes

and services and recommendations of additional routes
and services. The classification of the routes
(rationalized or new) shall be indicated in the plan.

A rationalized route is an existing route, previously

authorized route, which, after the route rationalization, is
proposed to be retained, or retained with modifications
on route structure (merged with another previously
authorized route, extended, shortened, proposed with
different via), modification on mode, or adjustments in
the number of units, due to marked change in trip
patterns arising from urban renewal or urban
redevelopment projects and/or resulting from traffic
circulation plans.

A new / developmental route is a route meant to

service new establishments or areas. Additional routes
shall be designed such that overlaps with existing routes
do not exceed 25% of the length of any of the affected
routes. In case of overlap above 25% with an existing
route, the additional route shall be classified as a
rationalized route.

While the number of authorized units for a particular

route shall be based on the respective route plan as that
of the rationalized routes, the LTFRB shall set a
maximum number of introductory units to be initially
authorized for the new/developmental routes which shall
be then re-evaluated after six (6) months of operation,
assuming the demand for the route is now established.

Further, a green route is a route to be serviced only by

electric PUVs (e-PUVs), pursuant to the Republic Act
No. 11697 or the EV Industry Development Act (EVIDA)
and its Implementing Rules and Regulations (IRR), and
criteria for green routes shall be be in the subsequent
policies and issuances.

d. Proposed Service Plan

The headway and frequency of service along each route,

as differentiated for peak and non-peak hours, and
graveyard hours as deemed necessary, should be part
of the route plan.

e. Implementation and Transfer Plan

The route plan shall also include an implementation plan

noting the changes in the existing routes and potential
 operators based on the consolidation record of the
LTFRB. It shall emphasize any affected consolidated
operator/s, the number of excess units, and possible
adjacent routes to which they can reassign their units
which shall then aid in the issuance of the CPC after the
LPTRP approval. Further, it shall also include a list of
operators and workers proposed to be beneficiaries of
the social support plan.

f. Sanggunian Stakeholder Consultation Reports

In the formulation of the route plan, the LGUs shall

encourage the participation of concerned stakeholders
which shall include, but is not limited to, transport
groups, commuters, and the academe. A copy of the
minutes of the meeting of all conducted stakeholder
consultations, including other documentations, shall be
attached in the route plan.

4.1.4. Route Plan Approval

4.1.4.1. Evaluating Office

The draft LPTRPs shall be submitted to the concerned

LTFRB Regional Franchising and Regulatory Office for
review and evaluation to be endorsed to the technical
panel for final review copy furnished the LTFRB Central
Office.

Among others, the draft LPTRPs shall be evaluated for

consistency and compliance with the guidelines provided
in this Department Order, LPTRP manual, and further
Memorandum Circulars.

4.1.4.2. Technical Panel

A Technical Panel, led by the designated Service Director

of the Department’s Planning and Project Development
Office (PPDO), with members from concerned offices shall
be in-charge of the final deliberation and recommendation
for approval of all LPTRPs. Technical personnel from
NGAs and academe shall be invited as resource persons
to ensure harmonization of the LPTRP with their plans.

The constitution of this body shall be issued through a

separate issuance.

4.1.4.3. Notices

The following shall be issued by the DOTr after due

deliberation and recommendation of the Technical Panel:

a. Notice of Compliance (NOC) shall be issued to

LGUs with draft LPTRPs, with route proposals,
deemed sound and compliant with the existing
 guidelines and principles or with appropriate
justification for any exceptions.

b. Special NOC (SNOC) shall be issued to LGUs, not

covered with Item 3.1.4.3 (c), and with draft LPTRPs
and without proposals for fixed routes, but only with
justifications narrating existing transport situations in
the plan deemed appropriate and acceptable.

c. Notice for Revision (NOR) shall be issued if there

are revisions deemed necessary upon deliberation
in the Technical Panel.

On the other hand, the following shall be issued by the

LTFRB Regional Franchising and Regulatory Office
(RFRO) shall also issue NOR if there are revisions deemed
necessary upon assessment of the evaluator.

d. Notice of Non-Coverage (NNC) shall be issued, in

lieu of an NOC, if the municipality has no existing
public transport fixed route yet, and meet at least one
(1) of the following criteria:

● Be a 4th / 5th / 6th class municipality

● Has a population of less than 10,000
● With at least one (1) geographically isolated and
disadvantaged areas (GIDA)
● Without existing public transport services
including four-wheeler fixed route services and
tricycle services
● Other conditions that may be recommended by
the LTFRB as approved by the Department and
the DILG.

e. Notice of Delay (NOD) shall be issued to LGUs with

submitted drafts but have failed to address
comments of the evaluators and submit a revised
draft, and LGUs with approved plans, but have failed
to adopt the same within the timeline to be
determined. The prescribed period of delay that will
warrant this notice shall be identified and issued by
the DILG and this Department through a Joint
Memorandum Circular (JMC). The list of LGUs with
NOD status shall be regularly transmitted to DILG for
appropriate action and assistance.

f. Notice of Non-Compliance (NONC) shall be issued

to LGUs with no submitted draft LPTRP. The
prescribed deadline that will warrant this notice shall
be identified and issued by the Technical Panel. The
list of LGUs with NCN status shall be regularly
transmitted to DILG for appropriate action and
assistance.

4.1.5. Route Plan Updating

 The LPTRP should be regularly evaluated and updated every three
(3) years. Changes in the routes in the approved route plan may be
proposed after at least six (6) months of operation, or as need arises.

4.2. Issuance of Certificate of Public Convenience

The approved route plan shall be the minimum requirement prescribed for the
issuance of CPCs or amendment of existing CPCs.

4.2.1. The LTFRB shall publish a call for applications to service the areas
with determined public need based on approved plans. Existing
consolidated operators shall be given preference to service the
rationalized routes, provided they submit proof of legal, technical, and
financial qualifications in accordance with the Public Service Act
(PSA) and guidelines to be issued by the LTFRB.

4.2.2. The LTFRB shall conduct an open and transparent process to select
the public transport operators for new/ developmental routes and
rationalized routes without existing consolidated operators, unless in
routes that shall be offered for affected consolidated operators who
submitted Petitions for reassignment of excess units.

The invitation for Application of CPCs shall indicate the following

minimum requirements:
4.2.2.1. Route details (route name, route code, route length route
structure descriptions with specific street and barangay
names, proposed locations of loading and unloading
stations as coordinated with the concerned LGUs, mode,
fleet size, and proposed service plan i.e. headway and
frequency)
4.2.2.2. Suggested fare as determined by the LTFRB
4.2.2.3. Standard list of requirements to prove legal, technical, and
financial qualifications in accordance with the PSA
4.2.2.4. Evaluation criteria, in cases of multiple operators having
complete set of documentary requirements
4.2.2.5. Office- and Qualification Committee in-charge
4.2.2.6. Date of Pre-qualification Committee Conference
4.2.2.7. Deadline for submission of documents
4.2.2.8. Other requirements as may be determined by the LTFRB

If selected, the operator concerned shall be issued a CPC consistent

with, and subject to, the rules and regulations governing public
transport.

4.2.3. CPC validity shall be determined by the LTFRB. Extensions of validity

and opportunity to increase fleet size, shall be subject to compliance
with existing policies of LTFRB, including the set key performance
indicators (KPIs).

4.3. Consolidation and Management of Operations

The LTFRB shall require the formation, particularly of individual operators, into
a recognized juridical entity, and the consolidation of CPC of concerned
coordinated fleets of PUVs for systematized operations and improved quality
of service. The LTFRB shall promulgate guidelines governing industry
consolidation.

As a basic policy, PUV drivers shall undergo the mandatory continuing drivers'
education through the Drivers' Academy by LTFRB and be provided with wages
and benefits not linked to ridership, as well as security of tenure.

4.3.1. Minimum Fleet Size

An existing / rationalized route shall have the least possible number

of operators, as determined by the LTFRB, through imposition of
minimum number of units for application for consolidation of CPC
(NUC) for operators per route. Meanwhile, only one operator shall be
selected for new / developmental routes.

4.3.2. Fleet Management

4.3.2.1. Pending the modernization of the whole fleet and the use
of information technology (IT) solutions, the consolidated
operator shall integrate operations management focused
on systematic dispatching through a service plan. For
routes with two (2) or more consolidated operators,
common fleet operations management shall be performed
through use of an agreed service plan among parties, and
use of a common terminal, if possible, except for Public
Utility Buses operating inter-regional and inter-provincial
routes.

4.3.2.2. Key Performance Indicators (KPIs) shall be set by the

LTFRB and shall be integrated in the Terms and
Conditions of the CPC. It shall include, among others,
compliance to the service plan.

4.3.2.3. Operators must fulfill safety operations requirements,

whereby a safety officer, employed or assigned on a full-
time basis, must inspect each unit and driver before
dispatch and ensure efficient operations on the ground.

4.3.2.4. Operators shall provide annual operational reports within

the first quarter of the succeeding year to the LTFRB for
consolidation and evaluation vis-a-vis KPI set. These
reports shall contain, among others,

a. Daily ridership, on weekdays and weekends

b. Daily deployment rate, on weekdays and weekends;
and
c. Monthly financial and operational reports (revenue,
expenses, etc.)

The LTFRB may require the above data within the

reporting period, as needed

Further, the LTFRB shall then submit a compiled annual

report to the Department before the end of the second
quarter of the succeeding year, which contains
 assessments and evaluations of the reports from the
operators.

Upon availability of the Public Transport Information

Management Center (PTIMC), the submission of data
shall be made through the system, and all fleet
management systems shall be linked to the command
center.

4.3.3. Capacity-Building

4.3.3.1. The Office of Transport Cooperatives (OTC) shall be in-

charge of capacity-building activities needed for transition
of the transport service cooperatives. Meanwhile, the
same shall be provided for by the LTFRB for non-
cooperatives.

5. TECHNICAL REQUIREMENTS

5.1. Public Utility Vehicles

In view of a more just and humane transition, the LTFRB shall adopt a policy
for consolidation of CPCs and substitution of units. With this, the timeline to be
set by the LTFRB shall reckon after the deadline set for consolidation of CPCs.

The deployment of modern PUVs shall consider the following factors a.) route
plan status, b.) fleet size, c.) current age of units, d.) absorptive capacity of
manufacturers, among others.

In cases of proposed upgrades from lower modes to higher modes or vice

versa, as a result of the rationalization study or LPTRP, the consolidated
operator who signifies intent to still service the rationalized route, shall be given
a reasonable time period to produce the needed fleet to be determined by the
LTFRB.

5.1.1. Transport Technology and Fuels

The existing Department Administrative Order (DAO) 2015-014 of the

Department of Environment and Natural Resources (DENR) shall be
adopted. All PUVs shall use clean and energy-efficient transport
technology and energy sources such as hybrid, electric, or at least as
stipulated in the existing DENR guidelines.

Refurbished and/or rebuilt vehicles shall pass the type approval

system test and issued a Certificate of Compliance with Emission
Standards (CCES) as a condition to initial registration by the LTO and
to the roadworthiness test of the LTO-Motor Vehicle Inspection
System for renewal of registration. Refurbished and/or rebuilt PUBs,
even with new engines or motors, shall not be allowed to substitute
for phased-out units.

5.1.2. Dimensional Limits

 The Philippine National Standards (PNS) issued by the Bureau of
Philippine Standards of the Department of Trade and Industry (DTI-
BPS) on dimensional limits of the PUVs as adopted by the LTFRB
shall be required for all PUVs.

5.1.3. Accessibility Provisions

PNS 2144: 2019 for Accessibility on PUVs or subsequent issuances

issued by the DTI-BPS, which includes but is not limited to provision
of designated seats for persons with disabilities (PWDs) or
passengers with limited mobility and spaces for a wheelchair in PUVs,
is adopted.

5.1.4. Minimum Artistic Designs

As far as practicable, all manufacturers and importers of PUVs are

encouraged to emulate the artistic design of the traditional PUJs to
preserve the country’s cultural heritage, consistent with relevant
enforceable PNS. Artistic design, in this case, shall be limited to mean
color schemes, logos, fonts, and stickers used on the outer panels of
the PUVs.

5.1.5. Other PUV Features

All modern PUVs shall have the following features:

5.1.5.1. Speed limiter
5.1.5.2. Global navigation satellite system (GNSS) receiver
5.1.5.3. Closed-circuit television (CCTV) with continuous recording
of past 72 hours of operation
5.1.5.4. Dashboard camera with continuous recording of past 24
hours of operation

All modern PUVs serving routes within highly urbanized cities shall be
required to have Automatic Fare Collection System (AFCS).

5.1.6. Year Model

The year of the oldest component i.e. chassis and the engine or motor
shall be of the same year or the previous year as of CPC application
as determined by the LTO.

5.1.7. Maximum Age

5.1.7.1. The LTFRB shall issue guidelines establishing the age

limit of each PUV mode based on the year of the oldest
major component (i.e. chassis and engine/motor) of the
vehicle and not the initial year of registration or the year of
importation as determined by the LTO.

5.1.7.2. PUV units exceeding maximum age shall be subject to

dropping and substitution and surrendered for scrapping
in facilities accredited pursuant to the Department Order
No. 2020-021, and Joint Memorandum Circular (JMC) No.
001, Series of 2021, between the LTFRB and the Land
 Transportation Office (LTO), and of any further issuances
by this Department and relevant agencies.

5.2. Related Support Infrastructure

The LTFRB shall determine technical requirements for the support facilities
below, as well as transition mechanisms through identification of possible
interim facilities and adequate compliance period for the operators to have the
required facilities.

5.2.1. Terminal

5.2.1.1. For fixed routes with a fixed origin and destination, no

Petition for Extension of Validity of CPC issued upon
deployment of modern PUVs shall be entertained by the
LTFRB without the presentation of a proof of operation of
an off-street terminal on endpoints. However, for loop
routes, an off-street terminal may not be required based
on the determination of the LTFRB.

5.2.1.2. For Application for Consolidation of CPCs and Application

for New CPCs or Modification of CPCs as a result of the
route rationalization, an Undertaking to have an offstreet
terminal shall suffice.

5.2.1.3. If the off-street terminal, or the loading and unloading bays

in the terminals are rented and/or leased, they shall have
a contract validity of at least two (2) years.

5.2.1.4. The minimum terminal size and other requirements, in

compliance with the Republic Act No. 11311 and its IRR,
the DILG-DOTC Joint Memorandum Circular (JMC) No.
001, Series of 2008, Housing And Land Use Regulatory
Board (HLURB) Board Resolution (BR) No. R-408, and
subsequent issuances shall be adopted through an
LTFRB Memorandum Circular. Terminals shall be
accredited by the LTFRB except for Integrated Terminal
Exchanges which shall be accredited by the Department.

5.2.1.5. All public transportation terminals shall comply with the

LGU's land use plan and zoning ordinance. As such, the
concerned LGU, in coordination with the Department and
the LTFRB, shall have the authority to designate terminal
locations and issue prior clearance to operate said
terminals, consistent with the DILG-DOTr JMC No. 01,
Series of 2008.

5.2.1.6. Participation of the private sector and of the LGUs in the

development of off-street terminals shall be encouraged.

5.2.2. Garage

5.2.2.1. The minimum lay-over or garage size and other

requirements, in compliance with the DILG-DOTC JMC
No. 001, Series of 2008, HLURB BR R-408, and other
 related and subsequent issuances shall be promulgated
through an LTFRB Memorandum Circular.

5.2.2.2. All garages shall also comply with the LGU's land use plan
and zoning ordinance.

6. FINANCING THE MODERNIZATION

6.1. The Department shall partner with government, as well as, private financing
institutions, for programs to assist the operators in the acquisition of modern
PUV units. Existing programs on the financing component based on prevailing
issuances shall be continued and regularly reviewed and/or updated.

6.2. Routes with high consolidation rate and operators with modern units shall be
given preference in programs providing assistance to the operators for
operational expenses as they transition to the PUVMP.

7. EXEMPTION

7.1. Any exception to the above stated rules shall require an express and written
grant of authority to be issued through a collegial and unanimous ruling from
the LTFRB granting the exception.

7.2. In the event that the LTFRB fails to secure a unanimous vote but is able to
secure a majority vote granting an exception on matters which admit exception
to these guidelines, the Secretary of the Department shall decide such matters.

7.3. The LTFRB may, motu proprio and/or through an evaluation of a written
Exception Application for the same, issue and/or grant exceptions to the above
mentioned rules, provided that such grant shall be pursuant to the general
policies stated in this Order.

7.4. All submissions of Exception Applications to the LTFRB shall need to be

accompanied by recommendation/s, whether favorable or not, from all the LG
Us which have jurisdiction over the areas where the proposed route/s shall
traverse.

8. TRANSITION PERIOD

8.1. All existing, updated, and valid CPCs or Provisional Authorities (PAs), including
individual CPCs or PAs, shall remain effective until such time that the juridical
entity/ies are able to deploy an adequate number of units in the concerned
route, not compromising the supply-demand balance.

8.2. For this purpose, the LTFRB shall provide the guidelines for transitioning and
CPC cancellation, and the Department shall partner with various agencies for
the development of social support programs for the affected transport
stakeholders and continuously implement existing programs on social support
based on prevailing and subsequent issuances and develop other programs,
as necessary, to provide assistance to the affected transport stakeholders of
the program.

8.3. Measures to mitigate any adverse socioeconomic impact on the vulnerable

members of the public transport sector in the implementation of this Order may
 be adopted by the Department, in consultation with the LTFRB, OTC, and other
relevant agencies, and when necessary, with the affected stakeholders.

9. FEEDBACK MECHANISM

9.1. A public dashboard on the outputs and outcomes of the PUVMP shall be
developed and maintained. Pending such a dashboard, the Department shall
publish quarterly reports on progress of PUVMP implementation.

9.2. Regular consultations with concerned stakeholders shall be conducted to

gather community feedback and ground reports to improve PUVMP.

10. ESTABLISHMENT OF IMPLEMENTING OFFICE

10.1. Program Management Offices (PMOs) shall be established in the DOTr,

LTFRB, and OTC to implement this Department Order, in line with the existing
mandates of the said agencies.

10.2. The funding for the establishment and operation of the said offices shall be
taken from the appropriations of the program. In case of non-allocation, it shall
be taken from the appropriations of each agency.

11. IMPLEMENTING GUIDELINES

11.1. The LTFRB is directed to promulgate the implementing Memorandum Circular

within thirty (30) days from effectivity of this Order.

12. SEPARABILITY CLAUSE

12.1. If any part or provision of this Department Order is held unconstitutional or

invalid, other parts of provisions which are not affected shall continue to remain
in full force and effect.

13. REPEALING CLAUSE

13.1. The Department Order No. 2017-011 shall be superseded by this Department
Order. Further, all other Department Orders, Circulars, Special Orders, Office
Orders and/or other issuances inconsistent herewith are hereby superseded or
modified accordingly.

14. EFFECTIVITY

14.1. This Department Order shall take effect thirty (30) days following completion of
its publication in the Official Gazette and/or in a newspaper of general
circulation and the filing of three (3) copies hereof with the UP Law Center
pursuant to Memorandum Circular 11 dated 09 October 1992 of the Office of
the President.