TO:	Secretary of Public Works, Transportation and
		Communications—Chairman, Committee on Bus Reorganization
	Secretary of Finance Chairman, Board of Transportation Chairman, Development Bank of the Philippines President, Philippine National Bank

WHEREAS, last June 21, 1976, I ordered the reorganization of private bus operators in Metropolitan Manila into four consortia with the Metropolitan Manila Transit Corporation as the fifth consortium;

WHEREAS, it is recognized that numerous pre-organizational problems beset the formation of consortia;

WHEREAS, a rationalization of operations in provincial bus operations is called for as in Mertopolitan Manila in view of conflicting reports of ruinous competition and transport deficiency;

IN VIEW THEREOF you are directed to take the following steps:

1. Relax the required number of bus consortia in Metropolitan Manila from four, but in no case should it exceed ten in number, inclusive of the government-owned Metropolitan Manila Transit Corporation (MMTC), and in no case should a single consortium or merger account for less than 200 operating units.
2. Impose a deadline for the formal organization of the consortia which should not be later than one year from this date.  All bus operators affected should, however, be registered before 21 June 1977 as belonging to any of the acceptable consortia under incorporation and their units bearing identifying marks/colors by this date. Non-membership to an acceptable and registered consortium shall be a valid cause for withdrawal or cancellation of any or all certificates of public convenience, franchises, permits to operate, or provisional authority by the Board of Transportation.
3. Draw up a more rational Metropolitan Manila Bus route network with measured capacity by route and with maximum transfers not exceeding three from any origin to any destination.  This network shall be the basis for reallocation of routes to the consortia and the issuance of corresponding permit to operate and/or certificate of public convenience to a consortium as a whole rather than separately to its members.
4. Study the critical situation of  provincial bus operators and formulate steps that would eliminate destructive competition among  private  operators, and between the Philippine National Railways and  private bus operators, and that would provide adequate and reliable service to all areas.  An acceptable measure of adequacy such as historical load factor, the need of commuters for cheap service, and the loans of government financial institutions should be considered in this study.
5. Draw up a practical and liberal financial assistance Program for the bus consortia, on such terms as will allow expansion into prescribed standard units and access to credit windows similar to MMTC's.

The Chairman of the Committee on Bus Reorganization is also authorized to organize a working technical secretariat for the Committee, hire or detail personnel/consultants thereto, grant honoraria and/or transportation/ representation allowances to secretariat members, on such firms as may be convenient and will facilitate above work of the Committee, existing rules and regulations to the contrary notwithstanding.  All expenses incurred herein chargeable to the appropriations of the DPWTC.

Done in Metropolitan Manila, this 20th day of April, nineteen hundred and seventy-seven.