Implementing Guidelines on the Opening of Proposed Additional Premium Point-to-Point Bus Services

January 20, 2017

LTFRB MEMORANDUM CIRCULAR NO. 001-17

 

Pursuant to Section 5 of Executive Order No. 202 empowering the Board "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," the following Implementing Guidelines of Department Order No. 2015-018 on the Opening of Premium Point-to-Point Bus Service are hereby promulgated. HTcADC

I. PREMIUM POINT-TO-POINT BUS SERVICE

In accordance with Department Order No. 2015-018, the Premium Point-to-Point Bus Service is introduced with the following operational characteristics:

Bus Body Make	:	a) Single deck or double-deck (11-13 meters in
		length);
		b) With external color/branding as specified by the
		Board;
		c) Euro IV or better emission standard or clean
		alternative fuel with equivalent or better emissions
		(e.g., electric or hybrid vehicles);
		d) Low floor entry (0.28m-0.38m) with space for one
		passenger with wheelchair, plus foldable or retractable
		wheelchair, plus foldable or retractable wheelchair
		ramp at exit;
		e) maximum of four (4) reclining seats per row.
Ventilation	:	Air-conditioned.
Routes	:	As authorized by DOTr.
Fare	:	As authorized by the Board
Operating conditions	:	a) Service with scheduled trips and designated off-
		street stops for loading/unloading passengers;
		b) No loading/unloading of passengers outside of
		designated off-street stops;
		c) With on-board CCTV, 4 cameras, continuous
		recording of minimum past 72 hours of bus
		operations;
		d) With vehicle tracking via on-board GNSS devices
		compliant with Board's specifications and driver
		console enabling two-way communication;
		e) With free wi-fi for all passengers;
		f) With on-board automated bus arrival electronic
		display and announcement system;
		g) With automatic fare collection system as one of the
		options for payment;
		h) Drivers under salary, with no compensation linked
		to ridership, but with incentives for better customer
		service and reduction of accidents;
		i) With facility advance Ticketing and seat booking
		via mobile phone and internet;
		j) With lay-over area/garage sufficient to
		accommodate all units (space provision of at least 40
		sqm. per unit plus 30% of garage area for circulation;
		this should be over and above the existing
		garage/depot space of their current bus fleet).

II. ROUTES

Pursuant to the Memoranda dated 4, 9 and 25 November 2016 duly signed by DOTr Secretary Arthur P. Tugade and Undersecretary Anneli P. Lontoc, including clarificatory instructions from DOTr, the additional four (4) franchise packages for Premium Point-to-Point Bus Service, with a total of nine (9) routes, are listed below. Each package will be awarded to one (1) qualified Applicant. A qualified Applicant may be selected for more than one (1) package. The terms and conditions of these packages will be subject to review at least 6 months after the commencement of operations:

Package 1
1	KATIPUNAN ROAD — MAKATI CBD
	Route Length	:	Approximately 16 kilometers
	Specific Endpoint
	Stops	:	Proposed by the Applicant
	Maximum Headway	:	10 minutes during peak hours in the direction
	One Year after Start		of rider demand and 30 minutes during off
	of Operation		peak hours
	Authorized Units	:	25 units
	One-way Fare	:	One Hundred Pesos (Php100.00)
2	EASTWOOD — MAKATI CBD
	Route Length	:	Approximately 13 kilometers
	Specific Endpoint
	Stops	:	Proposed by the Applicant
	Maximum Headway	:	10 minutes during peak hours in the
	One Year after Start		direction of rider demand and 30 minutes
	of Operation		during off peak hours
	Authorized Units	:	20 units
	One-way Fare	:	Eighty Five Pesos (Php85.00)
Package 2
1	LRT LINE 2 SANTOLAN STATION — CAINTA/TAYTAY
	Route Length	:	Approximately 11.7 kilometers
	Specific Endpoint	:	Proposed by the Applicant
	Stops
	Maximum Headway	:	10 minutes during peak hours in the direction
	One Year after Start		of rider demand and 30 minutes during off
	of Operation		peak hours
	Authorized Units	:	15 units
	One-Way Fare	:	Seventy Five Pesos
			(Php75.00)
2	LRT LINE 2 SANTOLAN STATION — COGEO/PADILLA (Special Stop at Masinag)
	Route Length	:	Approximately 11.6 kilometers
	Specific Endpoint	:	Proposed by the Applicant
	Stops
	Maximum Headway	:	10 minutes during peak hours in the
	One Year after Start		direction of rider demand and 30 minutes
	of Operation		during off peak hours
	Authorized Units	:	15 units
	One-Way Fare	:	Seventy Five Pesos
			(Php75.00 for entire stretch, Php30.00 for
			Masinag-Santolan)
3	LRT LINE 2 SANTOLAN STATION — ANTIPOLO TOWN PROPER (Special Stop at Masinag)
	Route Length	:	Approximately 14 kilometers
	Specific Endpoint	:	Proposed by the Applicant
	Stops
	Maximum Headway	:	10 minutes during peak hours in the direction
	One Year after Start		of rider demand and 30 minutes during off
	of Operation		peak hours
	Authorized units	:	15 units
	One-Way Fare	:	Ninety Pesos
			(Php90.00 for entire stretch, Php30.00 for
			Masinag-Santolan)
Package 3
1	ALABANG — BONIFACIO GLOBAL CITY (Taguig)
	Route Length	:	Approximately 21 kilometers
	Specific Endpoint	:	Proposed by the Applicant
	Stops
	Maximum Headway	:	10 minutes during peak hours in the
	One Year after Start		direction of rider demand and 30 minutes
	Of Operation		during off peak hours
	Authorized Units	:	19 units
	One-Way Fare	:	One Hundred Thirty Five Pesos
			(Php135.00)
2	ALABANG — BACOOR
	Route Length	:	Approximately 12 kilometers
	Specific Endpoint	:	Proposed by the Applicant
	Stops
	Maximum Headway	:	10 minutes during peak hours in the
	One Year after Start		direction of rider demand and 30 minutes
	of Operation		during off peak hours
	Authorized Units	:	15 units
	One-Way Fare	:	Seventy Five Pesos (Php75.00)
3	ALABANG — DASMARIÑAS
	Route Length	:	Approximately 26 kilometers
	Specific Endpoint	:	Proposed by the Applicant
	Stops
	Maximum Headway	:	10 minutes during peak hours in the
	One Year after Start		direction of rider demand and 30 minutes
	of Operation		during off peak hours
	Authorized units	:	23 units
	One-Way Fare	:	One Hundred Sixty Five Pesos
			(Php165.00)
Package 4
1	STA. ROSA (Brgy. Don Jose, Laguna) — MAKATI
	Route-Length	:	Approximately 40 kilometers
	Specific Endpoint	:	Proposed by the Applicant
	Stops
	Maximum Headway	:	10 minutes during peak hours in the
	One Year after Start		direction of rider demand and 30 minutes
	of Operation		during off peak hours
	Authorized Units	:	25-units
	One-Way Fare	:	Two Hundred Fifty Five Pesos
			(Php255.00)

Peak hours are defined as 6:00 am to 8:00 am and 5:00 pm to 7:00 pm. A minimum of twenty-five percent (25%) of the required units should be in service within three (3) months from Notice of Selection. A minimum of fifty percent (50%) of the required units should be in service within six (6) months from Notice of Selection. A minimum of seventy five percent (75%) of the required units should be in service within nine (9) months from Notice of Selection. The reminder of the required fleet should be in service within a year from Notice of Selection. At least one third (1/3) of the fleet should be double-decker units. The selected operator will be required to operate an interim service under special permit using either its own units or leased/chartered units. aScITE

III. QUALIFICATION REQUIREMENTS

Applicants must submit all the Legal, Technical, and Financial Capability Qualification Documents (collectively referred, to as "Qualification Documents") provided below:

1. Legal Qualification

a) Filipino citizen who is at least eighteen (18) years old:

a.1) Certified true copy of Birth Certificate duly issued by the National Statistics Office.

b) Filipino domestic juridical entity with a primary purpose to provide transportation services:

b.1) if corporation or partnership, Certified True Copies of Certificate of Registration, Articles and By-laws, and latest General Information Sheet duly issued/received by the Securities and Exchange Commission;

b.2) if cooperative, Certified True Copies of Certificate of Registration, Articles and By-laws, and latest Cooperative Annual Performance Report duly issued/received by the Cooperative Development Authority.

2. Technical Qualification

The Applicant must, provide the following:

a) Schematic Diagram of the unit with seating configuration;

b) Proposed delivery schedule of the units with notarized Certification from supplier, assembler and manufacturer, if based in the Philippines, if based outside of the Philippines, the Certification must be authenticated by a Philippine Consulate/Embassy;

c) Detailed map of the proposed route with location of specific off-street loading and unloading areas;

d) Copies of Letters of Support from property owners/managers regarding access to, or use of, each off-street loading and unloading area in the route map (in case Applicant is selected);

e) Scale map showing location and area of proposed garage/depot with separate space provision of at least 40 sqm. per unit plus 30% garage area for circulation; this should be over and above the existing garage/depot space of their current bus fleet; and

f) Evidence of access to proposed garage/depot space (land ownership papers; or Letter of Support from property owners/managers regarding access to, or use of, bus depot site, in case Applicant is selected). HEITAD

3. Financial Capability Qualification

The Applicant must provide the following:

a) Certified true copy of Audited Financial Statement dated not earlier than 31 December 2016, stamped "received" by the Bureau of Internal Revenue or its Authorized Agent Banks;

b) Documents to prove that the applicant has available financial resources equivalent to or exceeding the amount of Php10 million pesos multiplied by the total number of vehicles for the package or packages above that the Applicant is applying for. Proof of available financial resources may consist of the Applicant's Net Worth and/or credit line in favor of the applicant to finance the proposed bus fleet, issued by a domestic universal or commercial bank duly licensed by the Bangko Sentral ng Pilipinas; and,

c) Financial projections for the first five (5) years of operations, showing detailed revenues and costs, as well as projected demand, including assumptions made.

IV. SUBMISSION OF QUALIFICATION DOCUMENTS

The Applicant shall submit one (1) original copy and two (2) photocopies containing a Table of Contents and bound together in ring binders or folders sealed in an envelope or a box and appropriately addressed and marked as follows:

LAND TRANSPORTATION FRANCHISING AND REGULATORY BOARD Premium Point-to-Point bus Service QUALIFICATION DOCUMENTS PACKAGES APPLIED FOR: ____ Package 1 ____ Package 2 ____ Package 3 ____ Package 4 [NAME AND ADDRESS OF APPLICANT] DO NOT OPEN BEFORE ________

The Qualification Documents must be submitted between 9:00 am and 2:00 pm (Philippine Standard Time) on June 30, 2017 at the Office of the Executive Director. Each set of the Qualification Documents submitted by an Applicant shall be numbered in the order received and stamped with the date and time of receipt. ATICcS

Filing or submission of Qualification Documents after 2:00 pm on June 30, 2017 shall not be accepted.

A Pre-Qualification Conference will be held on Friday, April 28, 2017 at 2:00 pm.

V. THE PRE-QUALIFICATION COMMITTEE AND ITS PROCESS

A Pre-Qualification Committee for the Pre-Qualification Process is created:

Chairperson	:	LTFRB Executive Director
Vice Chairperson	:	DOTr Assistant Secretary (Planning)
Member	:	LTFRB NCR Regional Director
Member	:	LTFRB Legal Division Chief
Member	:	LTFRB ISMD Division Chief

Immediately after 2:00 pm on June 30, 2017, the Committee will begin the opening proceedings by announcing the names of the Applicants who have submitted Qualification Documents and any such other details as it may consider appropriate. The Committee will then proceed with the opening of the envelopes/boxes of each Applicant, one at a time and in the order in which the same are received. The Applicant or any duly authorized representative for each Applicant present during the opening proceedings shall register confirming their attendance.

VI. EVALUATION OF QUALIFICATION DOCUMENTS

The Committee shall examine the Qualification Documents within seven (7) days after the Submission Date of Qualification Documents. The detailed evaluation of the compliance by the Applicant with the Legal, Technical and Financial Capability Qualification Requirements shall be based solely upon the Qualification Documents submitted. The Committee may seek clarification from the Applicants on the form and contents of their Qualification Documents. The Committee may also make inquiries with any person, government authority, client organization, officer, director, employee or other agent of any Applicant or Affiliate of any of these for the purpose of clarifying any matter included in its Qualification Documents.

All submitted information and any clarifications requested by the Committee shall be assessed against the criteria for qualification as set out above and generally rated on a "PASS-or-FAIL" basis. An applicant will be rated as "QUALIFIED" if each criterion is rated "PASSED" and each required Qualification Document and attachment is completely submitted. The Applicant will be disqualified if any criterion is rated "FAILED" or if any required Qualification Document or attachment is missing. If there are two (2) or more qualified Applicants for a package, a public "lottery" with the presence of the qualified Applicants will determine which Applicant will be processed further.

The Committee shall submit to the Board its recommendation for the latter's approval. TIADCc

The Applicant selected for each of the packages will be directed to submit an Application for the Issuance of a Certificate of Public Convenience with the Board.

VII. ISSUANCE OF SPECIAL PERMIT FOR INTERIM SERVICE

The Applicant selected will be required to operate an interim service within fifteen (15) days from Notice of Selection with a minimum number of vehicles specified in the table below and compliant with the specifications in this section. The Applicant will be permitted to use either its own units or units that are leased or chartered from other operators, manufacturers or dealers. In its submission, the Applicant is required to include an Annex entitled "Annex A: Plan for (Route) Interim Service" which should contain (a) the list of the bus units that will be used in the interim service containing the name of the owner/operator, the make of the bus, and year model; (b) copies of the official receipts and certificates of registration of the units; and (c) passenger insurance documents for the said units.

For this purpose and pursuant to the above-mentioned DOTr Memoranda, the following guidelines shall govern the issuance of the Special Permits.

A. The Minimum and Maximum Number of Vehicles Required for the Interim Service and the One-Way Fare for Each Route are the Following:

	Route	One-way Fare	Minimum Number of Vehicles (2/3 of Authorized Units)	Maximum Number of Vehicles (Authorized Units)
Package 1	Katipunan Road – Makati CBD	Php100.00	17	25
Eastwood — Makati CBD	Php85.00	13	20
Package 2	LRT Line 2 Santolan Station - Cainta/Taytay	Php75.00	10	15
LRT Line 2 Santolan Station - Cogeo/Padilla (Masinag-Santolan)	Php75.00	10	15
(Php30.00)
	LRT Line 2 Santolan Station - Antipolo Town Proper, (Masinag-Santolan)	Php90.00	10	15
(Php30.00)
Package 3	Alabang — Bonifacio Global City (Taguig)	Php135.00	13	19
Alabang — Bacoor	Php75.00	10	15
Alabang — Dasmariñas	Php165.00	15	23
Package 4	Sta. Rosa (Brgy. Don Jose, Laguna) — Makati	Php255.00	17	25

B. Bus Specifications:

1. Only the units authorized by the Board for use in the interim service must be deployed by the Applicant for use in the interim service. AIDSTE

2. The units must at least be air-conditioned, 9-13 meters in length, equipped with wi-fi internet connection, maximum four (4) seats per row, not more than 5 years old, and free of exterior dents, major blemishes or discoloration that could mar the external appearance of the vehicle.

3. The Board may reject vehicles with features or appearance that are not in keeping with the desired higher standards service.

4. Prior to operation, the vehicles should affix identifying markings/stickers as authorized by the Board for easy identification by riders and traffic enforcers.

C. Operating Conditions:

1. Peak hours shall be 6:00 am to 8:00 am and 5:00 pm to 7:00 pm; the interim should have a maximum headway of 30 minutes during peak hours for vehicles moving in the direction of passenger demand.

2. Applicants may offer at the time of their application more units than the above minimum number for a particular route, but not exceeding the number of authorized units per route.

VIII. REPEALING CLAUSE AND EFFECTIVITY

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

This Memorandum Circular shall take effect immediately following its publication in at least one 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, Metro Manila, January 20, 2017.

EFFECTIVITY DATE: January 21, 2017.

(SGD.) ATTY. MARTIN B. DELGRA IIIChairman

 

(SGD.) ENGR. RONALDO F. CORPUSBoard Member

 

(SGD.) ATTY. AILEEN LOURDES A. LIZADABoard Member

 

Attested by:

 

(SGD.) ATTY. CARL SHA JEMIMAH F. MARBELLAExecutive Director-OIC