To enhance the promotion of transport service cooperatives, and consistent with the provisions of Republic Act No. 6938, otherwise known as the Cooperative Code of the Philippines, particularly Article 97 thereof, which states: "In case there are two (2) or more applicants for the same public service franchise or certificate of public convenience and necessity, all things being equal, preference shall be given to public service cooperative", the concerned agencies are hereby enjoined to observe the aforecited provisions.

Likewise, to extend maximum assistance to all transport service cooperatives, the Memorandum of Agreement dated July 18, 1999 between the LTFRB and OTC and Memorandum of Agreement dated March 21, 2002 between the LTO and OTC, copies of which are attached hereto, both on the subject of dealing with transport service cooperatives, the same are hereby declared in full force and effect, until revoke, amended or superseded by a subsequent memorandum of agreement.

This Circular shall take effect fifteen (15) days after filing of three (3) copies hereof with the University of the Philippines Law Center, pursuant to the provisions of Section 3, Book VII, Administrative Code of 1987.

Adopted: 20 September 2004


(SGD.) LEANDRO R. MENDOZA
Secretary