Republic
Act No. 2717
AN ACT TO CREATE THE
ELECTRIFICATION ADMINISTRATION, AND OTHER PURPOSES
SECTION
1. This Act shall be known as the “Electrification
Administration Act.”
SEC.
2. It is declared to be the policy of
the Republic of the
SEC.
3. For the purpose of carrying out the
policy enunciated in this Act, specially in the rural areas, there is hereby
created and established an agency to be known as the “Electrification Administration,” all the
powers of which shall be exercised by an Administrator, who shall be appointed
by the President, with the consent of the Commission on Appointments, for a
term of ten years and who shall receive an annual compensation of twelve
thousand pesos, which may be increased to not more than twenty-five thousand
pesos as the President may deem proper.
SEC.
4. The
Administrator
is authorized (a) to make loans for the electrification and the furnishing of
electric energy, particularly in rural areas; (b) to plan, coordinate program
and supervise comprehensive, efficient and dependable producing, transmitting
and distributing systems for electric power; (c) to make, or cause to be made,
studies investigations, and reports concerning the condition and progress of
electrification of any region of the country, principally the furnishing of
electric power ultimate consumers; (d) to encourage and aid local governments
and cooperative electric consumers associations in undertaking the public
service of electric power, heat and light systems, and (e) to publish and
disseminate information with respect thereto.
SEC.
5. The
Government
Service Insurance System, the
Social
Security System and the
Development
Bank of the Philippines are hereby authorized and directed to make loans
not exceeding in aggregate the amount of fifty million pesos with interest at a
rate not exceeding five per cent per annum to local government, electric
consumers cooperative associations duly organized under the laws of the
Philippines, and to Filipino electric franchise holders now operating, upon
recommendation of the
Administrator and
with the approval of the National Economic Council, for the purpose of
constructing, operating, maintaining and administering electric power, heat and
light system for service to the public and/or for the purpose of purchasing any
existing electric public service.
SEC.
6. As a revolving fund of the
Electrification Administration, there is
hereby appropriated the sum of five million pesos for the fiscal year nineteen
hundred sixty-nineteen hundred sixty-one, subject to availability of funds, and
the same amount each year for the next four fiscal years. Any sum as assets which NEC-ICA may assign to
the
Electrification Administration shall
form part of this revolving fund, except when it is expressly set aside for
research or operating expenses. The
President of the
SEC.
7. Out of the revolving fund, the
Administration is authorized and empowered to
make loans to local governments, electric consumers cooperative associations
duly organized under the laws of the Philippines, and to Filipino electric
franchise holders now operating, for the purpose of financing the construction
and operation of generating plants, electric transmission and distribution
lines or systems for the furnishing of electric energy, particularly in rural
areas. Such loans shall be on such terms
and conditions relating to the expenditure of the moneys loaned and the
security therefor as the
Administrator
shall determine, and may be payable in whole or in part out of the borrower’s
income: Provided, That all such loans shall be self-liquidating within a
period of not less than twenty-five years, and shall bear interest at a rate
not to exceed three per centum per annum, except loans from funds taken from
Japanese loans under the Japanese Reparations Treaty, in which case the
interest shall not exceed the interest on Japanese loans: Provided,
further, That loans shall not be made unless the
Administrator finds and certifies, that in
his judgment the security therefor is reasonably adequate and such loans will
be repaid within the time agreed: Provided, further, That the contract of
loan shall contain a stipulation that the rates of any borrowing electric
public service shall be fixed so that its profit shall not exceed six per cent
per annum of the rate base, notwithstanding any provision of law providing
higher rate of profit.
SEC.
8. The
Administrator
is authorized and empowered to make loans for the purpose of financing the
wiring of the premises of persons in rural areas and the acquisition and
installation of electrical plumbing appliances and equipment. Such loans may be made to any Filipino
citizen or to any borrower of funds under Section seven hereof, or to any
person, association or corporation supplying or installing said wiring, appliances
or equipment. Such loans shall be for
such terms, subject to such conditions, and so secured as reasonably to assure
repayment thereof, and shall be at a rate of interest not to exceed five per
centum per annum.
SEC.
9. The
Administrator
is authorized and empowered to extend the time of payment of interest or
principal of any loan made by him or pursuant to this Act.
SEC.
10. The Administrator is authorized and
empowered to (a) bid for and purchase at any foreclosure or other sale, or
otherwise to acquired property pledged or mortgaged to secure any loan made
pursuant to this Act; (b) pay the purchase price and any costs and expenses
incurred in connection therewith; (c) accept title to any property so purchased
or acquired in the name of the Republic of the Philippines: (d) operate or
lease such property for such period as may be deemed necessary or advisable to
protect the investment therein; and (e) sell such property so purchased or
acquired upon such terms and for such consideration as the
Administrator shall
determine to be reasonable.
No
borrower of funds shall, without the approval of the
Administrator, sell or dispose of the
property, rights or franchises acquired under the provisions of this Act, until
any loan obtained from the
Electrification
Administration, including all interest and charges, shall have been repaid.
SEC.
11. To enable the
Electrification Administration to implement
more effectively the provisions of this Act, the
Administrator shall have a technical staff
and such other staffs or personnel as he may deem proper. The
Administrator
shall appoint, fix the compensation and determine the duties of such staff,
officials and employees as the exigencies of the service may require.
SEC.
12. The
Administrator
may call upon any department or agency of the Government for assistance or
cooperation on any matter connected with the functions and powers of the
Electrification Administration.
The
Administrator shall execute all electrification projects that may be authorized
in any Public Works Acts; and for
this purpose, he may call for assistance and cooperation from the
National Power Corporation and the
Mechanical and Electrical Division of the
Bureau
of Public Works.
SEC.
13. The
Administration
shall present annually to the Congress not later than the last day of January
in each year the full report of its activities under this Act.
SEC.
14. No member, officer, attorney, agent,
or employee of the
Electrification Administration
shall in any manner, directly or indirectly, participate in the determination
of any question affecting any corporation or association in which he is
directly or indirectly interested. Any
person violating the provisions of this section shall be removed from office
and shall upon conviction be punished by a fine not to exceed ten thousand
pesos, or imprisonment not to exceed five years, or both.
SEC.
15. No officer or employee of the
Electrification Administration nor any government official who may exercise
executive or supervisory authority over the
Electrification
Administration, either directly or indirectly, for himself or as the
representative or agent of others, shall become a guarantor, indorser, or
surety for loans from the
Electrification
Administration to others, or in any manner be an obligor for money borrowed
from the
Electrification Administration. Any such officer or employee who violates the
provisions of this section shall be immediately removed by competent authority
and said officer or employee shall be punished by a fine of not less than one
thousand pesos nor more than five thousand pesos, or imprisonment for not less
than one year nor more than five years, or both.
SEC.
16. No loan shall be granted by the
Electrification Administration to any person
related to the
Administrator within the
third degree of consanguinity or affinity, or to any corporation, partnership,
or company wherein the Administrator is a shareholder. Violation by the
Administrator of the
provisions of this section is a sufficient cause for his removal by the
President of the
SEC.
17. No fee, commission, gift, or charge
of any kind shall be exacted, demanded, or paid for obtaining loans from the
Electrification Administration, and any
officer, employee or agent of the Administration exacting, demanding or
receiving any fee, commission, gift or charge of any kind for service in
obtaining a loan, shall be punished by a fine of not less than one thousand nor
more than three thousand pesos, or imprisonment for not less than one year nor
more than three years, or both.
SEC.
18. Any person who, for the purpose of
obtaining, renewing, or increasing a loan or the extension of the period
thereof, on his own or another’s behalf, shall give any false information or
cause through his intrigue or machination the existence and production of any
false information with regard to the identity, situation, productivity, or
value of security, or with regard to a point which affect the granting or
denial of the loan, whether the latter has been consummated or not, and every
officer or employee of the
Electrification
Administration who, through connivance or negligence, shall allow by action
or omission such false information to pass unnoticed, thereby causing damage to
the
Electrification Administration or
exposing the latter to the danger of suffering such damage, shall be punished
by a fine of not less than the amount of the loan obtained or applied for, nor
more than three times such amount, or imprisonment for not less than three
months nor more than three years, or both.
SEC.
19. Any officer or employee of the
Electrification Administration who violates
or permits any agent or any other officer or employee of the Administration or
any other person to violate any of the provisions of this Act not specifically
punished in the preceding sections, and any person violating any provision of
this Act or aiding and abetting the violation thereof, shall be punished by a
fine not to exceed ten thousand pesos, or imprisonment for not more than five
years.
SEC.
20. If any provision of this Act, or the
application of such provision to any person or circumstance is declared
invalid, the remainder of the Act or the application of such provision to other
persons or circumstances shall not be affected by such declaration.
SEC.
21. All Acts or parts of Acts
inconsistent herewith are repealed or modified accordingly.
SEC.
22. This Act shall take effect upon its
approval.
Enacted without Executive approval, June 19, 1960.
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