Getting a transport cooperative (TC) accredited means achieving official recognition and authorization to operate within the public transportation sector. It validates the cooperative’s formation, structure, and compliance with cooperative and transportation regulations. It is a milestone for a transport cooperative, marking its readiness to provide reliable and compliant transportation services.
The accreditation signifies that the cooperative has met specific standards, complied with regulatory requirements, and demonstrated financial capability to provide transportation services effectively and responsibly. By undergoing the accreditation process, it commits to operating responsibly and being accountable to regulatory authorities and the public. By undergoing the accreditation process, a transport cooperative commits to operating responsibly and being accountable to regulatory authorities and the public. In this guide, we listed the key aspects of what this accreditation entails.
Understanding Transport Cooperatives
Transport cooperatives (TCs) are organizations formed by vehicle owners or transport operators to collectively provide transportation services, typically in the form of public utility vehicles (PUVs) like jeepneys, vans, taxis, buses, and trucks for hire. These cooperatives play a crucial role in the transportation sector by offering efficient, affordable, and regulated services to commuters and cargo transporters alike.
Being part of a cooperative means collaborating under a cooperative framework to provide public transportation services. They enjoy specific benefits available only to recognized transport groups that abide with the industry standards. For the members, the cooperatives offer benefits such as shared resources, operational efficiencies, and a unified voice in the transportation industry.
Benefits
TCs are an important part of the industry, but an accreditation is necessary for their operations because:
- It grants legal recognition, validating the legitimacy of the cooperative
- It ensures compliance with regulatory requirements.
- It allows the cooperative to gain access to additional franchises and permits
- It encourages expansion of operations operations
- It is the first step to consolidation of individual transport units into a unified fleet
- It ensures that transport cooperatives meet specific standards regarding:
- vehicle quality
- operational safety
- financial stability
- overall industry compliance and
- professionalism
- It grants them eligibility to participate in government programs aimed at modernizing the transportation sector
- It enhances the credibility and trustworthiness of the transport cooperative among passengers, regulators, and business partners
Getting Accredited as a Transport Cooperative
If you’re looking to seek official accreditation for your TC, then you need to understand the process and requirements. You also need to meet specific conditions and requirements within a specific timeline, before you can operate as one. For detailed and specific information, here’s a guide to the Office of the Transportation Cooperatives (OTC) accreditation process.
Documentary Requirements
The necessary documents vary based on whether your TC has existing Certificates of Public Convenience (CPCs) or franchises or not:
General Requirements
- Letter-request signed by the Cooperative Chairperson
For TC-applicants without CPCs/franchises
- Copy of Cooperative Development Authority (CDA) Certificate of Registration
- Bank certification showing the cooperative’s paid-up capital
- Affidavit declaring no prior payments to OTC and acknowledgment that accreditation does not guarantee CPC/franchise approval
For TC-applicants with valid CPCs/franchises
- Photocopy of the CDA Certificate of Registration
- At least 15 units of Original receipts/certificate of registration (OR/CR) for vehicles
- Management agreement for consolidating individual franchises
- Bank certification of paid-up capital
- Affidavit stating no previous transactions with OTC and acknowledging accreditation does not ensure CPC/franchise approval
Capitalization Requirements
Financial capability is assessed based on the type and number of units within the cooperative. Each type of unit (PUJ, taxi/van, bus, truck) has specific authorized, subscribed, and paid-up capital requirements and they are as follows:
PUJ/Multi-Cab (15 units)
- Authorized Capital Stock: Php4,800,000.00
- Subscribed Capital Stock: Php1,200,000.00
- Paid-Up Capital: Php300,000.00 (Php20,000.00 per unit)
Taxis/Vans (15 units)
- Authorized Capital Stock: Php12,000,000.00
- Subscribed Capital Stock: Php3,000,000.00
- Paid-Up Capital: Php750,000.00 (Php50,000.00 per unit)
Buses/Minibuses (10 units)
- Authorized Capital Stock: Php16,000,000.00
- Subscribed Capital Stock: Php4,000,000.00
- Paid-Up Capital: Php1,000,000.00 (Php100,000.00 per unit)
Trucks for Hire (2 units)
- Authorized Capital Stock: Php3,200,000.00
- Subscribed Capital Stock: Php800,000.00
- Paid-Up Capital: Php200,000.00
Tricycles
- Paid-Up Capital: Php15,000.00
Compliance with Omnibus Franchising Guidelines (OFG)/PUV Modernization Program
Adherence to OFG and the PUV Modernization Program is crucial, covering aspects like modernized vehicle units, fleet management operations, and infrastructure (e.g., garage, terminal).
Procedures
Once the requirements are ready, the application for transport cooperative accreditation can be initiated. To do so, you may simply follow these steps:
Here’s a simplified step-by-step procedure for the accreditation process of a transport cooperative:
Step 1. Document Evaluation
- The Office of the Director of Planning, Operations, and Administrative Services (OD-POAS) receives the application.
- They review the submitted documents and ensure compliance with guidelines.
Step 2. Notification of Compliance
- If all requirements are met, the OD-POAS notifies the cooperative applicant.
- A summary write-up is prepared for presentation to the Technical Accreditation Committee (TAC) meeting.
Step 3. Incomplete Application
- If documents are incomplete, the OD-POAS sends a letter detailing the missing requirements and advises the applicant.
- The cooperative has 30 days to submit the necessary documents; otherwise, the application may be reconsidered for the same route.
Step 4. TAC Review
- The TAC reviews the application and prepares a final write-up with recommendations for the OTC Board.
Step 5. Feedback for Deferral
- If the TAC defers the application, the cooperative is informed of the reasons and advised on necessary actions.
- The cooperative has 30 days to address deficiencies before the application is re-evaluated.
Step 6. Board Approval
- The Chairperson of the TAC presents all applications to the OTC Board during a scheduled meeting.
- Upon approval, the OD-POAS issues:
- Letter of Approval
- Certificate of Accreditation signed by the OTC Chairperson
- Certificate of Good Standing (CGS) valid until June 30 of the following year.
- For provisional accreditation, an interim certificate is issued along with conditional documents.
Step 7. Deferral or Disapproval
- If the application is deferred, the cooperative is informed of the reasons and given 30 days to comply.
- In case of disapproval, the cooperative is notified of the reasons and has 30 days to file an appeal.
This process ensures that transport cooperatives meet necessary requirements and comply with regulations to obtain accreditation for their operations. The procedures align with government standards promoting efficiency and transparency in business transactions as mandated by relevant laws and regulations.
Types of Accreditation Issued
The OTC issues different types of accreditation based on compliance levels:
- Full Accreditation: This status is granted when a transport cooperative meets all documentary requirements and conditions set by the accrediting board.
- Provisional Accreditation: A cooperative may receive provisional accreditation if they meet the minimum requirements but fail to comply with specific conditions, such as the number of units and franchises within the stipulated timeframe.
- Deferred: Applications may be deferred if additional validations or verifications are needed. The cooperative must address the specified conditions within a given timeframe.
- Disapproved: If a cooperative fails to meet minimum requirements, the application may be disapproved. However, there’s an option to appeal within 30 days of receiving the notice of disapproval.
Role of Accreditation in PUVMP Compliance
The accreditation process under the Public Utility Vehicle Modernization Program (PUVMP) is crucial for transport cooperatives to comply with modernization standards, which include the transition to safer, more environmentally friendly vehicles and the improvement of service quality.
To participate in the PUVMP and access related incentives and support, transport cooperatives must undergo accreditation to demonstrate their commitment to meeting the program’s requirements and contributing to the overall improvement of the public transportation system.
Video: Celebration of Transport Cooperatives
To learn more about the contributions of the transport cooperatives to the society, watch this video from OTC below:
Summary
Accreditation as a transport cooperative involves detailed preparation, adherence to regulations, and ensuring financial and operational compliance. By meeting these requirements, cooperatives can operate legally, contribute to the transportation sector, and access government programs aimed at modernizing public transport.
For better guidance and other inquiries, you may consult with the local OTC office in your area or reach out to the OTC directly via the following contact information:
Office of Transportation Cooperative (OTC)
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