DOTC offers franchises for CNG-run buses

MANILA, Philippines - The Department of Transportation and Communications (DOTC) said public utility transport operators who want to use brand-new bus units that run on compressed natural gas (CNG) can now apply for franchises with the Land Transportation Franchising and Regulatory Board (LTFRB).

Transportation Secretary Jose de Jesus has ordered the exemption of CNG-fueled public utility buses (PUBs) from the franchise moratorium in a move to encourage transport operators to use more environment-friendly transport vehicles.

De Jesus recently issued Department Order 2011-14, directing the LTFRB to open its franchise window for brand-new buses using CNG-fed engines.

“CNG-fueled vehicles are environment-friendly, and compliant with the Philippine initiatives on the reduction of greenhouse gas (GHG) emissions, as well as help promote the use of alternative fuels in public transportation facilities. Hence, the DOTC promotes the use of this type of vehicles,” he said.

De Jesus also said that the use of CNG helps reduce operation and maintenance costs, thereby improving the efficiency of public utility bus operations.

However, he said there are limitations to the grant of franchises, one of which is the identification of the route by the DOTC. De Jesus said bus owners must also present documents to support their franchise applications such as garage lease contract for off-street terminals at both ends of the route.

The DOTC chief also said that the franchise being sought “must be consistent with all the policies, rules and regulations of the LTFRB.”