MEMORANDUM CIRCULAR NO. 2018-005, February 13, 2018

[ MEMORANDUM CIRCULAR NO. 2018-005, February 13, 2018 ]

AMENDMENT TO MEMORANDUM CIRCULAR NO. 2018-03 [RE: COMMON SUPPLY BASE FOR TRANSPORT NETWORK VEHICLE SERVICE (TNVS)]

Adopted: 12 February 2018 Date Filed: 13 February 2018

WHEREAS, the Board issued Memorandum Circular No. 2018-03 [Re: Common Supply Base for Transport Network Vehicle Service (TNVS)] wherein the Board set a common supply base for TNVS and lifted the moratorium on the acceptance of applications for the issuance of a Certificate of Public Convenience (CPC) to operate TNVS.

WHEREAS, prior to the scheduled acceptance of TNVS applications or on 05 February 2018, after subsequent consultations with the Department of Transportation (DOTr) to discuss intervening facts and findings, the Board was constrained to suspend the implementation of MC No. 2018-03 to conduct further studies on the actual number of units to form the common supply base.

WHEREAS, as a result of the audit performed by independent auditors on the pertinent data of Transport Network Companies (TNCs) up to the period of July 2017, a reconciled master list was arrived at wherein it was found that the TNCs have a total of fifty nine thousand and twenty (59,020) accredited peers most of whom were not able to file their respective applications for CPC with the LTFRB due to the moratorium on the acceptance of TNVS applications.

WHEREFORE, premises considered, taking into account factor such as unserved demand, color coding and churning rate peculiar to TNVS operation all for the paramount interest of the riding public, the Board resolves to revise the common supply base as follows:

Metro Manila (including MUCEP area) - 65,000 TNVS units Metro Cebu - 1,500 TNVS units Pampanga - 250 TNVS units

Likewise, accredited hatchback units shall now be allowed subject to the following conditions:

Hatchback units shall be accepted subject to a transition period of three (3) years in order for the peers to recoup their investment.

Hatchback units shall only be allowed to operate within Metro Manila. Hatchback units are prohibited from operating in the provinces of Laguna, Bulacan, Rizal and Cavite.

Hatchback units shall charge lower fare rates to be approved by the LTFRB.

TNVS Applicants shall likewise be allowed to replace or drop and substitute their accredited vehicles with year models from 2012 and earlier within ninety (90) days from effectivity of this Circular.

This Memorandum Circular shall take effect after fifteen (15) calendar days reckoned from its publication in a newspaper of general circulation and the filing of three (3) copies hereof with the UP Law Center pursuant to Presidential Memorandum Circular No. 11, dated 09 October 1992.

SO ORDERED. 12 FEB 2018 Quezon City, Philippines

(SGD) ATTY, MARTIN B. DELGRA, III Chairman

(SGD) ENGR. RONALDO F. CORPUS Board Member

(SGD) ATTY. AILEEN LOURDES A. LIZADA Board Member

Attested by:

(SGD) ATTY. CARL SHA JEMIMAH F. MARBELLA Officer-in-Charge Office of the Executive Director