As public transportation vehicles increase in number, various regulations and acronyms are implemented govern the industry, each playing a pivotal role in ensuring safety, efficiency, and compliance. One such acronym that holds significant importance is CPC, which stands for Certificate of Public Convenience. This document, issued by the Land Transportation Franchising and Regulatory Board (LTFRB), serves as a cornerstone in the management and operation of public utility vehicles (PUVs) in many countries, including the Philippines.
In this guide, we’ll look into the LTFRB’s CPC, along with the procedures and prohibitions associated with securing and using CPCs.
What is Certificate of Public Convenience (CPC)?
A Certificate of Public Convenience (CPC) is a legal authorization granted by the LTFRB to individuals or entities seeking permission to operate public transportation services. This certificate essentially gives the holder the right to transport passengers or cargo along specific routes using designated vehicles.
The Purpose of CPC
The primary objective of the CPC is to regulate and control the provision of public transportation services, ensuring that operators adhere to specific standards and guidelines set by the government. By obtaining a CPC, operators commit to meeting safety standards, maintaining their vehicles, and providing reliable services to the public.
Requirements
As stipulated in Section 16(a), Chapter II of the Public Service Act (C.A. No. 146, as amended), the issuance of a certificate is contingent upon the fulfillment of the following prerequisites:
1. The applicant must be a citizen of the Philippines, or a corporation, co-partnership, association, or joint-stock company formed under Philippine law, with at least 60 percent of its stock or paid-up capital owned by Filipino citizens.
2. The applicant must demonstrate financial capability to undertake the proposed service and fulfill the responsibilities associated with its operation.
3. The applicant must provide evidence that the operation of the proposed public service and the authorization to conduct business will serve the public interest in a proper and suitable manner.
How to Apply for a CPC in LTFRB
The process of obtaining a CPC involves several steps, starting with the submission of a formal application to the LTFRB.
- Start by Preparing Your Application: Gather essential details including your personal information, the type of transportation service you plan to offer, proposed routes, and the list of vehicles to be used. These details will constitute your formal application to the LTFRB. Download the application form here – https://ltfrb.gov.ph/wp-content/uploads/2017/10/A.-NEW-CERTIFICATE-OF-PUBLIC-CONVENIENCE-CPC.pdf
- Submit Your Application: Once you have collated all necessary information, submit your application to the LTFRB. The board will commence a comprehensive evaluation of your application, assessing various aspects such as the requirement of additional transportation services in your proposed area and your capability to cater to this demand.
- Await Application Approval: Following a thorough review, if your application meets all the criteria, the LTFRB will give its approval.
- Receive Your CPC: Upon approval, you will be granted a CPC. This certificate will enumerate the authorized routes for operation and the number of operating units permitted.
- Comply with CPC Terms and Conditions: Lastly, it’s essential to strictly abide by all terms and conditions outlined in your CPC to ensure continuous compliance with all regulatory standards.
Reminder: Once your application is approved, you will receive a CPC specifying the authorized routes and the number of units allowed to operate. To stay compliant with regulatory requirements, it’s crucial to strictly adhere to the terms and conditions outlined in the CPC.
CPC Filing Fees
- Filing Fee:
- Php 510.00 first two (2) units
- Php 70.00 per unit in excess of two (2) units
- Unit Verification Fee: Php 40.00 per unit
- Inspection Fee:
- Php 50.00 – PUV (with gross weight not exceeding 4,500 kg) per unit
- Php 100.00 – bus and truck per unit
Download CPC Application Form
You may download a copy of the CPC application form from the LTFRB’s official website here – https://ltfrb.gov.ph/wp-content/uploads/2017/10/A.-NEW-CERTIFICATE-OF-PUBLIC-CONVENIENCE-CPC.pdf
The form is available for download in PDF format and can be easily filled out and submitted electronically.
Here’s a sample screenshot of the CPC application form:
Policy Guidelines for Certificate of Public Convenience Issuance
The issuance of a Certificate of Public Convenience is contingent upon the public need for the service. The presumption of public need favors the applicant, and the burden of proving the absence of need for the proposed service lies with the oppositor. Adhering to the fundamental principle that the interest of public service takes precedence, the following guidelines govern the issuance of a Certificate of Public Convenience for all transport operators:
1. Entry into the Industry
1.1 Top a Monopolized Route:
Ensure a minimum of two (2) operators in any route. Routes served by only one (1) operator must promptly open entry to at least one (1) additional operator offering the same or superior mode/type of service.
1.2 Development Route:
Authorize operators developing routes without existing authorized operators/services to provide required services. Protection of investment for up to two (2) years is granted, after which the route shall be open for entry to at least one (1) additional operator.
1.3 Established Route with Franchised Operator(s):
Allow the entry of an additional operator in a route serviced by existing authorized operators in cases such as providing a more efficient and cost-effective service, introducing quality improvements, meeting additional capacity demands, ensuring effective competition, and addressing the contumacious violation of regulations.
2. Abandonment/Withdrawal/Suspension of Service
2.1 Total or Partial Abandonment/Withdrawal/Suspension:
Operators may forfeit their certificate if they abandon/withdraw/suspend service in authorized routes for one (1) month or more.
2.2 Notice of Withdrawal/Suspension:
Operators can withdraw/suspend services if a notice is filed with the LTFRB at least fifteen (15) days before such action.
3. Vehicle Replacement/Substitution and Addition/Expansion of Service:
Existing/authorized operators may increase units through replacement, introduction of additional units, and route changes with LTFRB approval.
4. Flexibility to Operate on More Than One Route:
Provincial buses may amend authorized routing patterns, subject to LTFRB Memorandum Circular No. 91-007 conditions.
5. Terminal Sharing:
Operators should follow the development of common/public terminals adopted by Local Government Units under RA No. 7160 (Local Government Code).
6. Quality of Service:
Continuous upgrading of safety standards, including vehicle insurance cover, vehicle design, roadworthiness standards, and separate examination systems for drivers of passengers and freight public utility vehicles.
Rate and Fare Setting
Liberalize pricing to introduce price competition with quality of service, subject to prior notice and public hearing. Fares cannot be provisionally authorized without a public hearing.
A. General Structure of Rates:
Widen the existing fare range system for provincial buses and jeepneys to +20% and -25%, replacing authorized fare with an indicated or reference rate.
Determination of Financial Capability of CPC Applicant
Establish financial capability criteria for applicants with more than five (5) units, including working capital and equity investment requirements.
Technical Evaluation
Ensure roadworthy and properly maintained vehicles, meeting established physical, technical, and service standards.
Route Measured Capacity (RMC)
The RMC system is used as a guide, not a limit, in weighing franchise applications based on public need.
Video: Filipino Shares List of Requirements of Certificate of Public Convenience by LTFRB
Check out this video by a Filipino citizen who shared his experience in applying for a CPC with the LTFRB. He discusses the requirements needed for obtaining a CPC and shares tips on how to properly prepare your application. This first-hand account can serve as a helpful guide in understanding the process of obtaining a CPC and what it takes to successfully obtain one.
CPC and Public Safety
The issuance of CPC is closely linked to public safety. By controlling the number of vehicles operating on specific routes and ensuring that operators adhere to safety standards, the LTFRB aims to minimize accidents, maintain order in the transportation system, and protect the well-being of passengers.
Period of Validity of a Franchise
CPCs are valid for five (5) years from issuance.
Penalties/Sanctions
Violations or failures to comply with guidelines constitute grounds for disapproval of CPC applications, in addition to penalties under the Public Service Act and relevant rules and regulations, after due notice and hearing.
Summary
In the intricate web of regulations governing public transportation, the Certificate of Public Convenience (CPC) stands out as a critical element. It serves as both a permission slip and a commitment from operators to uphold standards, ensuring the safe and efficient movement of people and goods. Understanding the role of CPC in LTFRB is essential for both operators and passengers alike, as it shapes the landscape of public transportation and contributes to the overall well-being of communities.