Applying for a Provisional Authority (PA) requires passing a thorough assessment by the Land Transportation Franchising and Regulatory Board (LTFRB). It is a mandatory requirement for operators or car owners who wish to have their vehicles operating publicly as a transport service provider while waiting for their franchise applications and Certificate of Public Convenience (CPCs) to be issued.
The Provisional Authority is a temporary measure granted after a thorough inspection of numerous factors, including the capacity of the transport vehicles, compliance with safety standards, and the operator’s commitment to fulfilling the requirements for a regular franchise. This ensures that despite being a temporary measure, the granted provisional authority aligns with the LTFRB’s commitment to public safety and service reliability.
What is a Provisional Authority (PA) from LTFRB?
A Provisional Authority (PA) is a temporary provisional remedy issued to any person who intends to operate their unit/s while their franchise applications are pending with the agency. This permit lets the individual operate in certain public activities, much like a Certificate of Public Convenience (CPC) would. For example, if you want to operate as a truck-for-hire but have yet to receive your CPC, you can use the provisional authority as a temporary trucking requirement permit. Likewise, in cases when you want to convert your car as a public utility vehicle (PUV) or a car-for-hire or if you want to offer ride-sharing services under a Transport Network Vehicle Service (TNVS) platform like Grab, then you’d need a provisional authority.
While the Provisional Authority may seem like a practical solution, note that it cannot be used as a long-term substitute for an LTFRB franchise. In fact, before a provisional authority can be issued, one must have processed an application for a CPC first. Also, the PA comes with limited validity of only three months to one year, depending on certain conditions. A provisional authority can only be renewed once (though some special cases may overrule this) for another three months of usage upon request.
Using Provisional Authority under the Public Utility Vehicle Modernization Program (PUVMP)
Under the Public Utility Vehicle Modernization Program (PUVMP), the following guidelines on the validity of Provisional Authority is outlined under MC 2023-051 which was signed and issued on December 14, 2023.
- Consolidated Transport Service Entities (TSEs) and individual operators with a filed application for consolidation before December 31, 2023, are allowed to continue operations under their existing motu propio Provisional Authority (PA). This authorization is valid until December 31, 2024, or until the issuance of the Certificate of Public Convenience (CPC), whichever comes first.
- The 6-9-12 month substitution scheme for old/existing units is no longer in effect. The compliance period for such schemes will be subject to subsequent Department of Transportation (DOTr) or LTFRB issuances.
- The previous requirement of 15 OFG-compliant units for the issuance of a CPC has been set aside. Consolidated TSEs can now obtain a new CPC by submitting their Formal Offer of Evidence (FOE) with complete documentary requirements.
Routes Without Consolidated TSEs
- For routes without Consolidated TSEs, all Provisional Authorities (PA) issued to individual operators are considered revoked from January 1, 2024. The authorized units will not be confirmed for registration as public utility vehicles. A Show Cause Order will be issued in compliance with the provisions of the Public Service Act.
- To address the need for adequate public transport on these routes, the LTFRB will issue separate guidelines.
Individual Applicants under TNCs
- For individual applicants who wish to process a Provisional Authority application in order to join a TNC, they will need to submit the documentary requirements for CPC application to their preferred TNC and they will be issued a provisional authority upon submission of CPC Application.
How to Apply for Provisional Authority (PA) for Individual/TNC Applicant at LTFRB
There are certain steps in securing a provisional authority from the LTFRB. If you are an individual applicant and you are interested in joining a TNVS, you may refer to the procedures for PA application listed below, as described by Board Resolution No. 185:
- Four (4) original copies of the Verified Application (the template is downloadable at www.ltfrb.gov.ph)
- Photocopy of Official Receipt and Certificate of Registration (OR/CR).
- If the unit is encumbered, an Affidavit of Undertaking that the CoC shall be submitted during the hearing.
- Proof of Filipino Citizenship, such as
- Birth Certificate,
- Voter’s ID, or
- any valid Government-issued Identification Card showing Citizenship, and
- Certificate of TNVS Enrolment/Registration issued by the Transport Network Companies (TNC).
- TNC’s Notarized Certification to ascertain the genuineness and authenticity of the documents submitted.
The following requirements are necessary for the application for CPC and must be submitted at least five (5) working days prior to the CPC hearing date:
- LTO-issued OR/CR or COC from the bank or financial institution if the unit is under financing
- Proof of Existence and Sufficiency of Garage. If the applicant is the owner of the garage, the Transfer Certificate of Title (TCT)/Tax Declaration in the name of the applicant is required; if not, provide a copy of TCT/Tax Declaration with Notarized Lease Contract or Notarized Authority to Use Garage with an ID of the Lessor.
- Proof of Financial Capability in the form of Proof of Bank Deposit in the amount of ₱20,000 per unit
- 5R photograph of units subject to the application (front, back, and sides of the vehicle), including the front page of a newspaper to show the date when the pictures were taken.
- DTI Certificate of Business Name Registration
- BIR Certificate of Registration to engage in Transport Service or Proof of Filing
- Certificate of Enrollment/Registration issued by the TNC
- Police and NBI Clearance of the authorized driver/s
- Proof of Publication
- Affidavit of Publication by the publisher
- Copies of Publication
- Affidavit of Attestation as to the authenticity of the documents submitted
Procedures for Individual Provisional Authority Application for TNC Applicants
The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a series of Memorandum Circulars (MC) outlining guidelines for issuance and validity of provisional authority.
For actual procedures for application for provisional authority, here are the steps to follow:
Step 1: Set an appointment date for application of provisional authority.
Step 2: Show up on the appointed date and submit the required documents.
Step 3: Upon filing the Application, the applicant shall be required to submit an Affidavit of Undertaking that the CoC shall be submitted during the hearing, non-compliance of which shall be ground for dismissal of the Application.
Step 4: After acceptance of the Application, the Board will issue a Provisional Authority (PA), valid for ninety (90) days. No Extension of Provisional Authority shall be issued unless the Application is submitted for resolution upon submission of all the documentary requirements.
Step 5: Once you have the PA and the Passenger Insurance Policy, then you may attend your TNC’s onboarding.
Step 6: Attend the CPC hearing with an authorized representative from your TNC.
When applying for a new CPC and the provisional authority from the LTFRB, you may want to be ready to pay the following fees:
- LTFRB Processing Fees for one unit
- Filing fee (first 2 units) – ₱ 510.00
- ₱ 70.00 per unit in excess of two (2) units
- Legal Research Fee – ₱ 10.00
- Provisional Authority Fee – ₱ 250.00
- Passenger Insuran wece Fee (from SCCI): – Depending upon the cost per unit
Video: How to Renew Provisional Authority
Like other permits, the LTFRB Provisional Authority is also renewable. To apply for a renewal of the provisional authority from LTFRB, you may watch this video from Kuys TV:
For your reference, here are a few things worth taking note of when it comes to individual application for provisional authority via a TNC:
- The slots shall be open to the public face-to-face on a first-come, first-served basis at the LTFRB Technical Division.
- Each TNC shall be allowed to register 100 slots per day.
- All registered slots must be paid and filed within two (2) days from the issuance of the assessment.
- Interested applicants must enroll and register with an accredited TNC of their choice.
- The Transport Network Company (TNC) of choice shall be responsible for the registration and filing of the Application for Issuance of New Certificate of Public Convenience.
- Each applicant shall be limited to applying for only three (3) units.
- The TNC of choice shall assist the applicants in preparing the documentary requirements and shall exercise due diligence in reviewing the documents submitted to it by the applicants in connection with their Application for a CPC to operate TNVS under Memorandum Circular No. 2015-017-A
- The TNC shall submit to the Board a Notarized Certification that it has exerted due diligence to ascertain the genuineness and authenticity of the documents and the application prior to submitting them to the LTFRB.
- Only the accredited TNC’s authorized counsel on record shall be the authorized representative of the applicants.
The Provisional Authority issued by the LTFRB stands as a critical tool in addressing immediate transportation needs. However, it is essential to recognize its temporary nature and the need for operators to undergo the regular franchise application process for sustained and regulated service delivery. Depending upon the circumstances that prompted your need for a provisional authority, then you can prepare according to the guidelines listed above.