Cebu City studying MOA with Angkas
To systematize the operations of motorcycle-for-hire, the Cebu City government is now studying a proposed joint venture (JV) project with Angkas to use hailing applications in providing motorcycle services for its constituents.
City Administrator Nigel Paul Villarete said the city's JVSelection Committee is evaluating the unsolicited proposal project of Angkas with the city government.
To further study if the project is viable, the city government and Angkas intended to enter into an initial agreement to pilot test the online booking system.
With this, Villarete forwarded the proposed memorandum of agreement (MOA) with the city and the DBDOYC Inc., or Angkas, for the pilot testing of the project.
"As the contribution of the company, the company shall be responsible for providing the App in the project including the maintenance and the support services for the App," read a portion of the proposed MOA.
The city's contribution is to screen and do the accreditation of drivers in coordination with relevant government agencies and to provide assistance to the company for the implementation of the project.
The proposed MOA was referred to the City Council's committee on laws, ordinances, and styling; and the committee on transportation for their comments and recommendations.
Villarete asked the City Council to pass a resolution authorizing Mayor Tomas Osmeña to sign the MOA with the representative.
While the city government is not shelling out funds for this project, it will get P200,000 monthly fixed rate regardless of the amount of income or loss from the project.
The revenues from the project will be derived from the administrative fees to be paid by the drivers accredited to use the application.
In the MOA, Angkas will develop and launch a customized application that will be used exclusively for the project.
The system will accommodate 10,000 motorcycle drivers, accommodate at least 100,000 passenger or users and support 50,000 bookings on a daily basis.
Like the existing application, there will be a fare matrix based on the standard rates.
"All online App drivers' current location shall be trackable in real-time, by both the App administrators and
Angkas the App end users matched with them," the agreement reads.
The MOA will be entered into for the pilot testing of the proposed JV project with Angkas. If the JV project will not be awarded to Angkas, the MOA will be deemed automatically terminated upon the issuance of a Notice of Award to whomever the city will award the project.
The Cebu City Legal Office, through Atty. Rico Abellanosa, has issued a legal opinion that the proposed MOA is legal, valid and binding.
The legal opinion was approved by City Attorney Joseph Bernaldez. —
Jean Marvette A. Demecillo/GAN