Increased Number, Registration, Integration, and Special Rates of Bus Consortia Operating in Metro Manila

July 20, 1983

LETTER OF INSTRUCTIONS NO. 1343

WHEREAS, LOI No. 532 was issued to effect the reorganization of privately-owned bus operations in Metropolitan Manila into the appropriate number of bus consortia; cd i

WHEREAS, the intended corporate consolidation of small operators into the consortium of their choice has proceeded at a slow pace despite the encouragement and assistance provided by Government;

WHEREAS, fourteen (14) bus consortia have already been organized and recognized but a number of bus operators still have not joined any of these recognized consortia; cd i

WHEREAS, the government recognizes the organizational problems involved in the consolidation of small operations into larger corporate units with unified activities;

WHEREAS, it is government's basic policy to maintain the dominant private participation in the operation of public transit services, particularly in bus operations and other lower-capacity modes;

WHEREAS, other ancillary measures are required to achieve the desired rationalization of the Metro Manila bus transportation System;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution do hereby order as follows:

1. The maximum number of bus consortia to be allowed to operate in Metropolitan Manila shall be increased from ten (10) to fourteen (14), inclusive of the government-owned Metropolitan Manila Transit Corporation (MMTC); cd i

2. Each consortium must be registered with the Securities Exchange Commission as a stock corporation, and shall have at least one hundred fifty (150) bus units. Such consortia that do not have the required number of units shall be given up to 31 July 1984, in order to increase their fleet to one hundred fifty (150) buses either by integrating with another consortium or through the acquisition of more units. Route assignment, however, of these units shall be subject to the approval of the Board of Transportation;

3. All the consortia shall be given up to 31 July 1984 to combine and integrate their operations in terms of one ownership and one management of the old and new units. An integration plan, complete with intermediate dates and steps, shall be submitted by each consortia to the Ministry of Transportation and Communications not later than 31 December 1983; casia

4. In the allocation of routes to the consortia by the Board of Transportation, the specified bus route network designed by the Ministry of Transportation and Communications shall be used as the fundamental basis. It shall also be a basic policy, where feasible, that competition among the consortia shall be avoided and their respective service frequencies at every hour during the day shall be stipulated after careful study to ensure that a balance is reached between level of service to the public and consortia revenue;

5. Only bus units conforming to the Metro Manila standard bus body design and specifications, as approved by the Ministry of Transportation and Communications, shall be allowed to operate and all accredited consortia shall be given a grace period of five (5) years or up to 31 July 1988 to effect the required changes; cd

6. The rates for special bus services, such as express and air-conditioned buses shall henceforth be completely deregulated, subject to the specific definition delineated by the Board of Transportation as to the meaning and scope of such special bus services;

7. The Board of Transportation is hereby directed to immediately enforce the provision of LOI 532 with regard to bus operators which have failed to join any of the recognized consortia as of 31 December 1982;

8. The Ministry of Transportation and Communications and/or other government agencies concerned shall take such steps to strengthen the role of private enterprise and to extend assistance thereto in the provision of transportation services pursuant to the rationalization program of the Ministry of Transportation and Communications.

Any provision of LOI No. 532 inconsistent with this order is hereby repealed or modified accordingly.

DONE in Metropolitan Manila, this 20th day of July, Nineteen Hundred and Eighty-Three.