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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 1343 |
The Minister of Finance
The Chairman, Board of Transportation
The Director, Bureau of Land Transportation
The Chairman, Development Bank of the Philippines
The President, Metro Manila Transit Corporation
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;
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;
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);
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;
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;
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.
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