Despite the pandemic, the number of accredited transport cooperatives for the government’s Public Utility Vehicle Modernization Program (PUVMP) has reached a total of 1,232 cooperatives nationwide.
Latest data from the Office of Transport Cooperatives (OTC) showed an increase of 100 cooperatives formed since its last count of 1,131 transport cooperatives in early February this year.
Medel Afalla, OTC chairperson, said the continuous application of transport cooperatives shows the private sector’s support in heeding the call for safer and more convenient public transportation, especially amid the coronavirus pandemic.
OTC targets to have 120 accredited transport cooperatives this year.
Under the PUVMP, transport franchise owners, operators and drivers are encouraged to consolidate their fleet and form a business transport cooperative in an area.
Through the consolidation of fleets, meaning all units will now be under the ownership of the cooperative, the members of the cooperative can broaden their financial capacity in acquiring new units that pass the Philippine National Standards.
As part of the transport cooperative, operators will be considered as investors, while drivers will become regular employees with a fixed salary, social security and health insurance.
To formally organize a cooperative, a minimum of 15 franchise owners must be willing to consolidate their units, attend primary seminars, and collect membership fees and pay an initial capital.
Next, they must register at the Cooperative Development Authority (CDA) by securing a letter of endorsement for registration from the OTC and submit the registration documents at the nearest CDA extension office.
To get accredited, they must submit the full requirements for the application of accreditation to the OTC. The applications will be presented to the technical accreditation committee and subsequently to the OTC board for approval.
According to the OTC, the approval can be processed in one month for as long as all requirements are complete.
The complete set of requirements and the full guidelines on how to form a cooperative and apply for accreditation are available at the OTC’s official website.
Meanwhile, the Department of Transportation (DOTr) has extended the filing for consolidation until Dec. 31, 2020. If the drivers fail to consolidate, their franchise or certificate of public convenience will be cancelled but they may file for a provisional authority (PA) which is good for one year.
The PA is renewable for another year, until they or some transport cooperative or corporation will qualify to serve the route.
Last month, the DOTr increased its loan subsidy to P160,000 — double the previous amount of P80,000 — per unit or vehicle to help operators of existing transport cooperatives and newly formed ones to buy modernized units.
