TOO STRINGENT

With no applicants passing the test, LTFRB modifies guidelines for interim bus project

After futile attempts by Mindanao-based bus firms to nail a franchise for the Davao City Interim Bus Project, the Land Transportation and Franchising Regulatory Board (LTFRB) has decided to modify its requirements to make way for applicants to pass the stringent test.LTFRB has issued Board Resolution No. 174 s. 2020 modifying Part III of Memorandum Circular No. 2020-024 or the “Implementing Guidelines for the Davao City Interim Bus Project” last September 23, 2020. 

On June 22, 2020, the Board issued the guidelines opening the Toril, Catalunan Grande, and CP Garcia/Diversion routes for application.
A number of proceedings have since been conducted since the issuance of the aforementioned circular, however, none of the applicants qualified due to lack of currently manufactured low-floor low-entry units brought about by Covid-19 pandemic.

Armand Dioso, regional director of the Land Transportation Franchising and Regulatory Board 11 (LTFRB 11), said in a text message that amendments were made following the failure of the two Mindanao-based bus companies, Bachelor Express Inc., and Davao Metro Shuttle Corporation, to qualify for the franchise application for Davao City’s interim bus project or the High Priority Bus System’s (HPBS) bus routes.
Bachelor Express, which applied for the Toril to downtown route, and Metro Shuttle, which applied for Catalunan Grande to downtown route, both failed in the two rounds of evaluations conducted last July 17, 2020 and August 20,2020. 

The MC modified as follows: number of available compliant units with OR/CR or sales invoice and delivery receipt or undertaking to submit the same within one year from receipt of Notice of Selection; and undertaking to comply with the proposed delivery of complaint in it within one year from issuance of Notice of Selection as duly certified by the supplier, assembler or manufacturer, if based within the Philippines, if based outside the Philippines, the certification must be authenticated by a Philippine Consulate embassy. 

The selected operator will be required to operate within 15 days from Notice of Selection with a minimum of two-thirds of the total number of required vehicles while awaiting delivery of compliant units required under MC No. 2020-024. 

The MC also authorized LTFRB 11 to issue a 120-day Provisional Authority for this purpose, renewable for another 90 days upon justifiable reasons. The operator will be permitted to use, with preference to low floor low entry bus or coach-type buses not more than five years old at the date of application for PA, whether private or for hire, or units leased from other operators, manufacturers and dealers.

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