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Provisional authorization for PUVs extended until next December
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Provisional authorization for PUVs extended until next December

The Land Transportation Franchising and Regulatory Board (LTFRB) has again extended the Provisional Authorization (PA) for Public Service Jeepneys (PUJs) and Utility Express Vehicle Units (UVEs) to continue operating until December 31, 2025.

Pursuant to Memorandum Circular (MC) 2024-043, effective Monday, December 9, 2024, the LTFRB extended the validity of the PA for public utility vehicle (PUV) operators who requested consolidation under the of the Public Transport Modernization Program (PTMP). .

According to the LTFRB website, PA serves as an interim remedy for individuals intending to operate their units while their franchise applications are pending with the agency.

The LTFRB reopened consolidation applications for 45 days, from October 15 to November 29.

“After the April 30, 2024 deadline under MC 2024-01, the Commission issued MC 2024-039 authorizing transportation service entities (TSEs) to accept additional members until November 29, subject to the guidelines set forth in said MC,” states part of MC 2024-043.

The memorandum titled “Extension of Interim Authority Issued under the Public Transport Modernization Program” allows individual operators and TSEs with pending consolidation applications to continue their activities until December 31, 2025 or until December 31, 2025. until they receive their certificate of public convenience (CPC).

This decision responds to a significant volume of consolidation and modification requests filed with the LTFRB Central Office and its Franchise and Regulatory Regional Offices (RFROs), leading the LTFRB to further extend the validity of PAs.

“In light of the numerous consolidation requests and amended requests filed with the LTFRB Central Office and its RFROs, there is a need to further extend the validity of PAs issued by these offices in connection with the implementation of the PTMP,” we read in another extract from MC 2024. -043.

The extension specifically applies to PUJ and UVE service operators with pending or modified consolidation requests.

SunStar Cebu attempted to contact LTFRB 7 Director Eduardo Montealto on Sunday, December 15, but he was unavailable.

Reason for extension

In MC 2023-051, the LTFRB authorized consolidated TSEs and individual operators that filed consolidation applications as of December 31, 2023, to operate under their existing APs until December 31, 2024 or until they obtain their CPC.

Last January 24, President Ferdinand Marcos Jr. approved a three-month extension of the industry consolidation deadline, until April 30, as recommended by Department of Transportation Secretary Jaime Bautista.

After this April deadline, MC 2024-039 was issued, allowing TSEs to accept new members until November 29. The need for an additional extension arose due to the numerous consolidation requests and amended requests submitted to the LTFRB.

Operators must ensure that their vehicles are registered with the Land Transportation Bureau and have valid personal passenger accident insurance coverage.

TSEs can apply for a PA either from the LTFRB central office or from the RFROs, upon payment of the prescribed fees.

The PTMP aims to phase out traditional jeepneys in favor of safer and more sustainable vehicles equipped with modern features such as Euro 4 engines or electric motors. Operators are required to form cooperatives or corporations to apply for new franchises under this program – a process that has led to delays and financial hardship for many.

Extension history

A report from SunStar Cebu said the consolidation deadline has been extended eight times since 2017.

This year, Marcos Jr. announced that the April 30 deadline for franchise consolidation would no longer be extended. However, LTFRB Chairman Teofilo Guadiz III stressed that unconsolidated PUVs could join existing cooperatives for an additional period from October 15 to November 29.

According to a separate report, about 94 percent of PUVs in Central Visayas have consolidated, leaving only six percent, or about 480 units, to do so. / CDF