Along with the Land Transportation Office (LTO) and the other agencies attached to the Department of Transportation (DOTr), the Office of Transportation Cooperatives (OTC) support the land transport sector and the jeepney drivers in particular.
The idea for the Office of Transportation Cooperatives (OTC) was born in 1973, when the threat of an oil crisis loomed over the land transport sector. The government thought it was a good idea to organize the main stakeholders and the biggest losers in the oil crisis—the jeepney drivers and operators—into cooperatives, making them co-owners of the business, allowing them to own bigger units, get loans, and receive incentives, while making them a priority in the granting of permits and franchises.
What is the OTC?
The OTC stands for the Office of Transportation Cooperatives (OTC), an attached agency of the Department of Transportation (DOTr) tasked with administering and managing the promulgation and implementation of rules and regulations related to the promotion, organization, registration, accreditation, supervision, and development of the transportation cooperatives nationwide. It was officially created in May 1983 pursuant to Executive Order (EO) 898, even though the original conception was a decade earlier.
The OTC started out as a ten-member committee that established as many as 11 cooperatives in Metro Manila in its first year. The goal was to direct these cooperative organizations and its systems toward the following:
- The integration and rationalization of the public transit and transport system in order to effect economy and efficiency in the movement of passengers and goods,
- The amelioration of the social and economic conditions of public utility vehicle drivers, and
- The mitigation of the effects of a serious and impending shortage of energy.
Mission, Vision, and Mandate
As a government agency, the OTC operates and carry out its mandate under the guidelines of the following mission and vision:
To facilitate the transformation of Transport Cooperatives to become highly competitive transport and business organizations through genuine operation.
By 2040, the OTC visualizes a number of established transport cooperatives enjoying sustainable income and improved quality of life for its members. By then, the Office of Transportation Cooperatives (OTC) shall have become a dynamic and responsive government agency providing guidance and sound management, for transport cooperatives to experience increased and sustainable income and social benefits, through the effective and efficient provision of integrated public transport service systems.
This mission and vision is what guides the Office of Transportation Cooperatives (OTC) as it commits to carry out its mandate as follows:
- To promulgate and implement rules and regulations over the public transport service systems
- To govern the promotion, organization, regulation, supervision, and development of transportation cooperatives.
- To encourage the conversion of Tricycle Operators and Drivers Associations (TODA) into Transport Service Cooperatives (TSCs).
- To gear up the transportation cooperatives system towards maximum integration of the public transport system; and
- To generally uplift the socio-economic condition of the public utility system and the public utility transport workers, particularly the drivers.
To this end, the OTC offers the following services to both individual and organized groups of operators and drivers in the public transport service system:
Capacity Building Programs
Cooperative Education and Transport Operations Seminar (CETOS)
Cooperative Education and Transport Operations Seminar (CETOS) is a free primary and continuing educational course requirement for new and old members of transport service cooperatives (TSCs) designed to provide basic orientation and appreciation on how TSCs should function/operate as business enterprises and service providers. It also explains the basics of transportation service cooperatives concepts and practices, identifies the legal underpinnings of cooperatives and transport service operations, and highlights the significance of the members’ participation/involvement as a key playing tool in realizing the cooperative’s socio-economic objectives.
There are two types of CETOS offered by the OTC:
- OTC-Initiated Activity
OTC is regularly conducting scheduled CETOS activities. This happens every Thursday at its Conference Room on the 2nd floor of 1184 Ben-Lor Building, Quezon Avenue, Quezon City.
For more information, interested TSCs may inquire/confirm attendees/participants by contacting the following:
OTC Operations Division
Office Address:2nd floor of 1184 Ben-Lor Building, Quezon Avenue, Quezon City
Contact person: Ms. Emma M. Tagadtad or Mr. Darwin M. Tan
Contact number: 8332-9312
- TSC-Initiated Activity
TSC may also request for the conduct of CETOS in their area. They just need to submit the following at least fifteen (15) days prior to the activity:
- a request-letter addressed to the Office of the Chairman
- the proposed date of activity
- venue details
- number of attendees (minimum of 30, maximum of 50), and
- request for OTC speaker
TC Assess and Assist Program
TC Assess and Assist Program (Inspection & Monitoring)
Under this program, the OTC adopts the appreciative and positive-inquiry approach to ensure the TSCs’ compliance with the set rules, requirements and standards on transport and cooperative concerns. It also highlights the strengths and weaknesses of the TSCs by providing both commending and recommending statements to recognize accomplishments and determine needed actions to be taken through the following activities:
- assessment of the transport service Cooperatives’ administrative and operational records
- conduct of interview of officer/staff to gather diagnostic inputs
- other observations/verification activities with the primary goal of instituting appropriate technical guidance, assistance and coaching engagements.
Technical Development Assistance Services
Endorsement of Franchise & Other Transport Related Transactions
This involves pre-evaluation of TSC documents/other requisites, provision of technical assistance related to the procedures and requirements, OTC validation and recommendation of TSC applications/proposals to concerned governing partner agencies (e.g. DOTr, LTFRB, MARINA) related to the following franchise and other transport operations:
- applications for certificate of public convenience (CPC)
- dropping and substitution of units
- CPC extension of validity
- franchise consolidation
- route opening/modification
- change of motor/chassis, etc.
Financial Management Assistance (FMA) Services
This entails providing orientation, guidance, and coaching activities to TSCs for the following purposes:
- establishing appropriate books of accounts
- accounting procedures and other financial related aspects/concerns.
- For concerned TSC officers/staff: orientation on related rules/regulations
- identifying training/educational support; and
- monitoring progress/compliance with the rendered proposals/advice
TSC Pre-Accreditation Services
This involves OTC engaging the TSC organizing proponents/applicants and providing them with technical assistance/guidance in the preparation of related documents, orientation on registration/accreditation requirements and identifying the needed supporting actions to be taken. This includes issuance of endorsements for the registration of the transport cooperatives to the Cooperative Development Authority (CDA).
Other TDA Services
OTC is engage in providing other types/methods of technical assistance for its accredited TSCs to address relevant issues/concerns/needs not limited to the following:
Business/Socio-Economic Project Evaluation, Assessment and Endorsement
- pre-evaluation of project proposals
- rendering guidance in the preparation of business plan
- providing recommendations to improve project schemes
- endorsing the propositions to appropriate government/non-government entities (if requested/required).
Research and Special Studies
- conduct of research activities and/or studies for TSCs in aid of policy formulation
- conduct of research activities and/or studies for TSCs in aid of project development
- accommodating and addressing other concerns, issues and matters referred to OTC for some technical advice and guidance.
Other TSC Engagement
- engaging, participating and/or initiating activities
- observation of the proceedings of the TSC General Assembly Meetings
- consultation, dialogue, forum, focus group discussion, workshop sessions in aid of program promotion and development
- consultation, dialogue, forum, focus group discussion, workshop sessions in aid of policy promotion and development
- consultation, dialogue, forum, focus group discussion, workshop sessions in aid of advocacy promotion and development
Aside from the regular TSCs’ compliance with the set rules, requirements and standards on transport and cooperative concerns
- Application for Endorsement to CDA
- Application for Accreditation
- Training Request
- Issuance of Certificate of Good Standing
- Endorsement to Transport Service Cooperative Business Proposal
- Endorsement to LTFRB – Application for Consolidation of Individual Franchise into Cooperative Franchise
- Endorsement to LTFRB – Application for Certificate of Public Convenience
- Endorsement to LTFRB – Application for Extension of Validity
- Endorsement to LTFRB – Application for Voluntary Dropping and Substitution of Units
- Endorsement to LTFRB – Application for Involuntary Dropping and Substitution of Units
- Endorsement to LTFRB – Endorsement to concerned National Government Agencies, NGO, and LGU
- Online Koopihan
- Online CETOS
- Online Board Meetings & continuous TC accreditation
- Continuous coordination with CDA to improve transport cooperative registration and accreditation process
- Public Utility Vehicle Modernization Program (PUVMP) Launching Events
- Libreng Sakay Program in coordination with DOTr and TCs
- TCTV Webinar Series in partnership with Pag-IBIG Fund and Department of Trade and Industry – Bureau of Small and Medium Enterprise Development (DTI BSMED)
- TCTV with Development Bank of the Philippines (DBP)
For your reference, here are some important reminders you need to take note of:
- The OTC took at least 10 years after its conception and before it was officially established in the Philippines.
- It was originally established to protect the most vulnerable sectors of public transport right before the threat of an oil crisis becomes a reality.
- The OTC can be considered a standalone government agency, though it serves as an agency attached to the Department of Transportation (DOTr).
- Like any other government offices, you will need to wear proper attire if you ever need to visit the OTC office.
- The Department of Transportation (DOTr) has designated the head of the Operations Division of the Office of Transportation Cooperatives (OTC) as the Officer-In-Charge of the agency that is attached with DOTr.
- The CETOS is free of charge. That said, no compensation or other fees need to be paid to take it.
Video: Benefits of Joining a Transport Cooperative
In this explainer video posted by the Office of Transportation Cooperatives, you can learn more about the benefits that drivers and operators can get from joining a transportation cooperative.
Frequently Asked Questions (FAQs)
For more information, here are some common questions and answers related to the Office of Transportation Cooperatives (OTC):
1. What is the difference between the Cooperatives Development Authority (CDA) and the Office of Transportation Cooperatives (OTC)?
While the CDA provides necessary technical and professional assistance to ensure the promotion, organization, accreditation, viability, growth, and development of cooperatives with special concern for those related to agrarian reform, fishery and economically depressed sectors, the OTC is one designed to do the same only for the transportation cooperatives.
2. What is the function of the Office of Transportation Cooperatives?
The Office of Transportation Cooperatives (OTC) is an office designed to promulgate and implement rules and regulations to govern the promotion, organization, regulation, supervision, and development of transportation cooperatives.
3. What is the legal basis for the operations of the Office of Transportation Cooperatives (OTC)?
The Office of Transportation Cooperatives was established and to date keeps operating to serve its mandate to its full potential due to the following:
- Executive Order No. 898 (May 28, 1983) created the Office of Transportation Cooperatives (OTC) to promote the growth and development of transportation cooperatives.
- Presidential Memorandum Order No. 116 (September 15, 2003) directed the OTC, as lead agency, to enhance and intensify the voluntary conversion of tricycle operation/associations into transport service cooperatives.
4. What is CETOS?
CETOS stands for the Cooperative Education and Transport Operations Seminar (CETOS). It is a primary and continuing educational course requirement for new and old members of transport service cooperatives (TSCs) designed to provide basic orientation and appreciation on how TSCs should function/operate as business enterprises and service providers. It also explains the basics of transportation service cooperatives concepts and practices, identifies the legal underpinnings of cooperatives and transport service operations, and highlights the significance of the members’ participation/involvement as a key playing tool in realizing the cooperative’s socio-economic objectives. It comes in two different types: The OTC-initiated CETOS and the TSC_initiated CETOS and are now also available online, courtesy of the restrictions brought by the health crisis.
5. Is CETOS free of charge?
Yes. CETOS is free. Anyone who collects compensation or fees of any kind must be reported to the OTC.
The Office of Transportation Cooperatives is an agency of the Philippine government attached to the Department of Transportation (DOTr). It was originally created to counter the potential damage of a looming oil crisis and mitigate the effects on the most vulnerable of the public transport service sector – the drivers and the operators.
For more information, you may also reach out to the Office of Transportation Cooperatives (OTC) via the following contact information:
Office of Transportation Cooperatives
Office Address: 5th Floor Ben-Lor Building, Barangay Paligsahan, 1184 Quezon Avenue, Quezon City 1103
Telephone Nos.: (02) 8332-93-11 / 8332-933-12 / 8332-9313 / 8332-9315
Facebook Page: http://facebook.com/DOTC.OTC/
Email Address: email@example.com