Transport cooperatives (TCs) are important part of the transport ecosystem as they provide organized, efficient, and sustainable transport services. For a TC to be able to operate legally, the management is required to get accredited by the Cooperative Development Authority (CDA). Securing a favorable transport cooperative endorsement can be done at the Office of Transport Cooperatives (OTC).
A favorable endorsement to the CDA issued by the OTC is necessary in order for TCs to get accreditation from the CDA and to consolidate their operations under a unified management structure. It is the first step to legitimize the cooperative’s activities and secure operational benefits and support from the CDA. With this guide, we will walk you through the process of applying for a transport cooperative endorsement, detailing the necessary requirements, procedures, and additional tips to ensure a smooth application process.
What is a Favorable Endorsement to CDA
A favorable endorsement to the CDA is an official recognition from the OTC that a transport cooperative meets all the legal and operational requirements set by the agency. This endorsement signifies that the cooperative is compliant with the necessary regulations and is ready to seek the accreditation of the CDA. For transport cooperatives, this endorsement is pivotal as it is the first step to consolidating vehicle management, streamlines operations, and ensures regulatory compliance, which is crucial for maintaining high standards of service and operational efficiency.
Securing this document means that the transport cooperative is seeking to benefit from the support and resources provided by the CDA, including technical assistance, access to funding, and improved coordination with government transportation initiatives. It is also the first step to instill confidence among members and stakeholders, knowing that the cooperative is on its way to operating under recognized and approved guidelines.
How to Apply for Endorsement to CDA
Applying for a favorable endorsement to the CDA involves several steps, including preparing the necessary documents and following specific procedures. Below is a detailed breakdown of the requirements and processes involved.
Requirements
- Letter of Request signed by the cooperative’s Chairperson.
- Copy of Notarized Articles of Cooperation and By-Laws.
- Include Specific Business Operation in Article VII of the Articles of Cooperation (detailing the point of origin to the point of destination for proposed or existing operations in compliance with the minimum number of franchises).
- Include Provision on Vehicle Operation in the By-Laws, covering:
- Vehicle Ownership – All members must transfer the management of their units to the cooperative via a Management Agreement for franchise consolidation to provide efficient transport services. This includes the designation of routes, scheduling trips, registration of vehicles, and overall supervision of units.
- The cooperative must procure transportation vehicles, register them in the cooperative’s name, and handle operational expenses, including maintenance, registration, fuel, driver’s salaries, and operators’ benefits.
- Copy of Simplified Economic Survey (CDA).
Procedures
Step 1. Visit the OTC
- Head to the nearest branch of the OTC with your documentary requirements and secure the necessary application forms.
Step 2. Submit the Documents
- Submit all required documents to the Administrative and Finance Division (AFD) – Record Section. for initial processing.
- Make sure that your documentary requirements are complete and properly prepared to avoid delays.
Step 3. Evaluation of Documents and Preparation of the Final Action Taken
- The Office of the Director – Public Operations and Administration Services (OD-POAS) will evaluate the submitted documents.
- During this stage, the documents are reviewed for compliance with the requirements, and any necessary actions are prepared.
Step 4. Signing of Documents
- Once the documents are evaluated, they need to be signed by the appropriate authorities, including the Office of the Director (OD), Office of the Executive Director (OED), and Office of the Chairman (OC).
Step 5. Recording of Documents
- After the documents are signed, they will be recorded by the OD-Record Section for official documentation purposes.
Step 6. Releasing of Documents
- Finally, the processed and recorded documents are released back to the requesting transport cooperative through the AFD-Record Section.
By following these procedures and ensuring all requirements are met, your cooperative can successfully apply for and obtain a favorable endorsement to the CDA through the OTC.
Fees
Application Fee: Php 0.00
The entire application process is free of charge. There are no fees associated with applying for a transport cooperative endorsement.
Where to Apply
Submit your application documents to the appropriate department at the Office of Transport Cooperatives, the Administrative and Finance Division (AFD) – Record Section. Make sure all requirements are complete and properly notarized. Once the endorsement is ready, the AFD – Records Section of the OTC is also where you would claim the said endorsement.
Tips and Reminders
For your reference, here are some tips and reminders to keep in mind when visiting the OTC to request for an endorsement to the CDA:
- Double-check all documents for accuracy and completeness before submission.
- Ensure notarization of Articles of Cooperation and By-Laws.
- Highlight specific business operations and vehicle management provisions clearly in your Articles of Cooperation and By-Laws.
- Stay informed about any updates or changes in the application process or requirements from the CDA and OTC.
- Keep copies of all submitted documents for your records.
Video: Benefits of Transport Cooperatives to Drivers and Operators
What benefits do drivers and operators gain by joining a transport cooperative? How does it contribute to the Public Utility Vehicle Modernization Program (PUVMP)? Watch this video from the OTC PUVMP Project Management Office to find out.
Summary
Securing a favorable endorsement from the OTC to the CDA is essential for transport cooperatives to secure a CDA accreditation and to operate legally and efficiently. This endorsement ensures compliance with regulations and offers various operational benefits. The application process involves submitting a set of specific documents and following a detailed procedure. With no fees involved, the process primarily requires careful preparation and adherence to guidelines.
Contact Information
For further assistance or queries, it’s advisable to contact the Office of Transport Cooperatives directly.
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: official@otc.gov.ph