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

June 22, 2017

LTFRB MEMORANDUM CIRCULAR NO. 014-17

 

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 n 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

Bus Body Make	:	a) Single deck or double-deck (11-13 meters in length) or Coach (7-11 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/Low entry (0.28m-0.38m) with ramp at entry for one passenger with wheelchair, plus ramp at entry for foldable or retractable wheelchair;
		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. Designated off-street stops for loading/unloading passengers may be distributed within the origin and destination;
		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 fixed salary, with no compensation linked to ridership, but with incentives for better customer service, no traffic violation and reduction of accidents;
		i) With facility for 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 for 11-13 meter bus and at least 30 sqm. per unit for 7-11 meter coach plus 30% of garage area for circulation; this should be over and above the existing garage/depot space of their current bus fleet).

II. ADDITIONAL PACKAGE OF ROUTES FOR SELECTION

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 seven (7) franchise packages for Premium Point-to-Point Bus Service, with a total of fifteen (15) 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: CAIHTE

Package 1

1. KATIPUNAN ROAD-MAKATI CBD

Route Length	:	Approximately 16 kilometers
Specific Endpoint Stops	:	Proposed by the Applicant
Maximum Headway One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes during off 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 One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes 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 Stops	:	Proposed by the Applicant
Maximum Headway One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes during off 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 Stops	:	Proposed by the Applicant
Maximum Headway One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes 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 Stops	:	Proposed by the Applicant
Maximum Headway One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes during off peak hours
Authorized Units	:	15 units
One-Way Fare	:	Ninety Pesos (Php90.00 for entire stretch, Php30.00 for Masinag-Santolan)

Package 3

1. CALOOCAN-MAKATI

Route Length	:	Approximately 20 kilometers
Specific Endpoint Stops	:	Proposed by the Applicant
Maximum Headway One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes during off peak hours
Authorized Units	:	16 units
One-Way Fare	:	One Hundred Thirty Pesos (Php130.00)

2. MALINTA-NORTH EDSA

Route Length	:	Approximately 12 kilometers
Specific Endpoint Stops	:	Proposed by the Applicant
Maximum Headway One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes during off peak hours
Authorized Units	:	15 units
One-Way Fare	:	Seventy Five Pesos (Php75.00)

Package 4

1. MARIKINA-ORTIGAS

Route Length	:	Approximately 11 kilometers
Specific Endpoint Stops	:	Proposed by the Applicant
Maximum Headway One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes during off peak hours
Authorized Units	:	15 units
One-Way Fare	:	Seventy Pesos (Php70.00)

2. MARIKINA-MAKATI

Route Length	:	Approximately 18 kilometers
Specific Endpoint Stops	:	Proposed by the Applicant
Maximum Headway One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes during off peak hours
Authorized Units	:	16 units
One-Way Fare	:	One Hundred Fifteen Pesos (Php115.00)

Package 5

1. ANTIPOLO-ORTIGAS

Route Length	:	Approximately 15 kilometers
Specific Endpoint Stops	:	Proposed by the Applicant
Maximum Headway One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes during off peak hours
Authorized Units	:	15 units
One-Way Fare	:	Ninety Five Pesos (Php95.00)

2. ANTIPOLO-MAKATI

Route Length	:	Approximately 22 kilometers
Specific Endpoint Stops	:	Proposed by the Applicant
Maximum Headway One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes during off peak hours
Authorized Units	:	19 units
One-Way Fare	:	One Hundred Forty Pesos (Php140.00)

Package 6

1. CAINTA-MAKATI

Route Length	:	Approximately 14 kilometers
Specific Endpoint Stops	:	Proposed by the Applicant
Maximum Headway One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes during off peak hours
Authorized Units	:	15 units
One-Way Fare	:	Ninety Pesos (Php90.00)

2. CAINTA-ORTIGAS

Route Length	:	Approximately 7 kilometers
Specific Endpoint Stops	:	Proposed by the Applicant
Maximum Headway One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes during off peak hours
Authorized Units	:	15 units
One-Way Fare	:	Forty Five Pesos (Php45.00)

Package 7

1. SUCAT-MAKATI

Route Length	:	Approximately 16 kilometers
Specific Endpoint Stops	:	Proposed by the Applicant
Maximum Headway One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes during off peak hours
Authorized Units	:	15 units
One-Way Fare	:	One Hundred Pesos (Php100.00)

2. BICUTAN-MAKATI

Route Length	:	Approximately 11 kilometers
Specific Endpoint Stops	:	Proposed by the Applicant
Maximum Headway One Year after Start of Operation	:	10 minutes during peak hours in the direction of rider demand and 30 minutes during off peak hours
Authorized Units	:	15 units
One-Way Fare	:	Seventy Pesos (Php70.00)

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 except for packages/routes wherein the roads and geographical conditions (i.e., mountainous terrains) may warrant the inappropriate use of 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 including joint ventures or consortia of local firms, 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 the Applicant is a consortium, for purposes of submission on 30 June 2017, the member or participants shall submit 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.3) 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;

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). DETACa

3. Financial Capability Qualification

The Applicant must provide the following:

a) Original or 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) In case of joint ventures or consortia, proof of ability to provide the financial capability requirement measured in terms of the combined net worths of the members or a set-aside deposit equivalent to or exceeding the financial capability requirement as above mentioned. Set-aside deposit dedicated for the project (i.e., Point-to-Point Package/s applied for) cannot be withdrawn unless used for the package and must be duly certified by the depository bank;

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

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

____ Package 5

____ Package 6

____ Package 7

[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 July 31, 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.

Filing or submission of Qualification Documents after 2:00 pm on July 31, 2017 shall not be accepted.

A Pre-Qualification Conference will be held on Friday, July 14, 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 (Road Transport and Infrastructure)
Member	:	LTFRB NCR Regional Director
Member	:	LTFRB Legal Division Chief
Member	:	LTFRB ISMD Division Chief

Immediately after 2:00 pm on July 31, 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. aDSIHc

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, which may issue a notice of selection.

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 together with all the documentary requirements for New CPC in accordance with LTFRB's Revised Citizen's Charter. Fifty percent (50%) of the allocated units per package should be available before the CPC shall be granted by 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. ATICcS

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 (Maximum)	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 (Special Stop at Masinag)	Php75.00	10	15
LRT Line 2 Santolan Station-Antipolo Town Proper (Special Stop at Masinag)	Php90.00	10	15
Package 3	Caloocan-Makati	Php130.00	11	16
Malinta-North EDSA	Php75.00	10	15
Package 4	Marikina-Ortigas	Php70.00	10	15
Marikina-Makati	Php115.00	11	16
Package 5	Antipolo-Ortigas	Php95.00	10	15
Antipolo-Makati	Php140.00	13	19
Package 6	Cainta-Makati	Php90.00	10	15
Cainta-Ortigas	Php45.00	10	15
Package 7	Sucat-Makati	Php100.00	10	15
Bicutan-Makati	Php70.00	10	15

The fares provided in the Table above are the maximum. Any reduction in fare shall be subject to the prior approval of the Board.

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.

2. The units must at least be air-conditioned, 7-13 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. ETHIDa

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. TIADCc

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, June 22, 2017.

(SGD.) ATTY. MARTIN B. DELGRA IIIChairman

(SGD.) ENGR. RONALDO F. CORPUSBoard Member

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

Attested by:

(SGD.) ATTY. AUGUSTINE M. VESTIL, JR.Executive Director

n Note from the Publisher: Written as "safely" in the original document.

Published in The Philippine Star on June 24, 2017.