Presidential
Decree No. 938
FURTHER AMENDING CERTAIN
Sections OF
REPUBLIC
ACT NUMBERED SIXTY-THREE HUNDRED NINETY-FIVE ENTITLED, AN ACT REVISING THE
CHARTER OF THE
NATIONAL POWER CORPORATION,
AS AMENDED BY
PRESIDENTIAL DECREES NOS. 380,
395 AND
758
WHEREAS, in view of the accelerated expansion program for generation and
transmission facilities which includes nuclear power generation, the present
capitalization of
National Power
Corporation (NPC) and the ceilings for domestic and foreign borrowings are
deemed insufficient;
WHEREAS,
in the implementation of the power expansion program,
NPC is encountering difficulties in the
acquisition of land and land rights which unnecessarily stall and delay the
prosecution of the works to the prejudice of the projects;
WHEREAS,
corollary to such right-of-way problems, a definitive declaration of the just
compensation for the land and land rights acquired by
NPC for its projects should be affected;
WHEREAS,
in the application of the tax exemption provisions of the Revised Charter, the
non-profit character of
NPC has not been fully utilized because of restrictive interpretation of
the taxing agencies of the government on said provisions;
WHEREAS,
in view of the changing economic condition obtaining in the country, the
ceilings provided for in the award of contracts for construction and furnishing
of supplies, materials and equipment have been rendered inadequate;
WHEREAS,
in order to effect the accelerated expansion program and attain the declared
objective of total electrification of the country, further amendments of
certain sections of
Republic Act No. 6395, as amended by
Presidential Decrees Nos. 380,
395
and
758, have become imperative;
WHEREAS,
the substantial expansion of the power development program to be implemented by
NPC
requires revitalization of the organization and flexibility in responding to
the dynamic changes in its program;
NOW,
THEREFORE, I, FERDINAND E. MARCOS, President of the
SECTION 1.
Section 3 (h) of
Republic
Act No. 6395, as amended, is hereby deleted. The new section shall read as follows:
(h) To acquire,
promote, hold, transfer, sell, lease, rent, mortgage, encumber
and otherwise dispose of property incident to, or necessary, convenient or
proper to carry out the purposes for which the
Corporation was created.
SEC. 2.
Section 3(i) of the same Act is further amended by deleting paragraphs (a), (b) and (c)
thereof. A new section is hereby inserted to read as follows:
(i) To
construct works across, or otherwise, any stream, watercourse, canal, ditch,
flume, street, avenue, highway, or railway of private and public ownership as
the location of said works may require:
Provided,
That said works be constructed in such a manner as not to endanger life or
property: And, Provided, further, That
the stream, watercourse, canal, ditch, flume, street, avenue, highway or
railway so crossed or intersected be restored as near as possible to their
former state or in a manner not to impair unnecessarily their usefulness.
Every person or entity whose right-of-way or property is
lawfully crossed or intersected by said works shall not abstract any
such crossings or intersections and shall grant the
Corporation or its representatives, the
proper authority for the execution of such work. The
Corporation
is hereby given the right-of-way to locate, construct,
and maintain such works over and throughout the lands owned by the Republic of
the
SEC. 3.
Section 3(j) of the same Act is hereby amended
to read as follows:
(j) To exercise the
right of eminent domain for the purpose of this Act in the manner provided by
law for instituting condemnation proceedings by the national, provincial, and
municipal government as modified or amended by Presidential Decree No. 42.
SEC. 4.
A new section shall be inserted to be known as
Section 3A of the same Act to read as follows:
SEC.
3A. In
acquiring private property or private property rights through expropriation
proceedings where the land or portion thereof will be traversed by the
transmission lines, only a right-of-way easement thereon shall be acquired when
the principal purpose for which such land is actually devoted will not be
impaired, and where the land itself or portion thereof will be needed for the
projects or works, such land or portion thereof as necessary shall be acquired.
In determining the just compensation
of the property or property sought to be acquired
through expropriation proceedings, the same shall
(a) With respect to
the acquired land or portion thereof, not exceed the market value declared by
the owner or administrator or anyone having legal interest in the property, or
such market value as determined by the assessor, whichever is lower.
(b) With respect to
the acquired right-of-way easement over the land or portion thereof, not to
exceed ten percent (10%) of the market value declared by the owner or
administrator or anyone having legal interest in the property, or such market
value as determined by the assessor whichever is lower.
In addition to the just compensation
for easement of right-of-way, the owner of the land or owner of the improvement,
as the case may be, shall be compensated for the improvements actually damaged
by the construction and maintenance of the transmission lines, in an amount not
exceeding the market value thereof as declared by the owner or administrator, or
anyone having legal interest in the property, or such market value as determined
by the assessor whichever is lower: Provided, That in cases any buildings, houses and similar
structures are actually affected by the right-of-way for the transmission
lines, their transfer, if feasible, shall be effected at the expense of the
Corporation:
Provided, further, That
such market value prevailing at the time the
Corporation gives notice to the landowner
or administrator or anyone having legal interest in the property, to the effect
that his land or portion thereof is needed for its projects or works shall be
used as basis to determine the just compensation therefor.
SEC. 5.
Section 5 of the same Act is hereby amended
with the first and second paragraphs thereof to read as follows:
The authorized capital stock of the
Corporation is Eight Billion Pesos (P 8,000,000,000.00)
divided into eighty million (P 80,000,000) shares having a par value of one
hundred pesos each, which shares are not to be transferred, negotiated,
pledged, mortgaged or otherwise given as security for
the payment of any obligation. The sum
of Three Hundred Million Pesos of said capital stock has been
subscribed and paid wholly by the government of the
The remaining Seven Billion Seven
Hundred Million Pesos shall be subscribed by the
Government of the Republic of the
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SEC. 6.
The first paragraph of Section 7 of the same Act is
hereby further amended to read as follows:
The Management of the
Corporation shall be vested in the
General Manager, assisted by such number of Assistant General Managers,
officials, officers and employees as may be deemed necessary by the Board of
Directors of the
Corporation to meet
the management and technical manpower requirements of its expanding power
development projects, which reorganization shall be subject to the approval of
the President.
SEC. 7.
Section 8(a), last paragraph of the same Act is hereby
further amended to read as follows:
The total principal indebtedness of
the
Corporation under this subsection,
exclusive of interests, shall not at any time exceed Twelve Billion Pesos (P 12,000,000,000.00).
SEC. 8.
The first paragraph of Section 8(b) of the same Act is hereby further
amended and a new paragraph shall be inserted between the third and fourth
paragraph of said section which shall both read as
follows:
(b)
Foreign Loans.
The
Corporation
is hereby authorized to contract loans, credit any convertible foreign currency
or capital goods, and indebtedness from time to time from foreign governments,
or any international financial institutions or fund sources, or to issue bonds,
the total outstanding amount of which, exclusive of interests, shall not exceed
Four Billion United States Dollars (US $ 4,000,000,000.00) or the equivalent
thereof in other currencies, on such terms and conditions as it shall deem
appropriate for the accomplishment of its purposes and to enter into and
execute agreements and other documents specifying such terms and conditions.
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In the contracting of any loan, credit
or indebtedness under this Act, the President of the Philippines, may, when
necessary, agree to waive or modify the application of any law granting
preferences or imposing restrictions on international competitive bidding,
including among others, Act Numbered Four Thousand Two Hundred Thirty-Nine,
Commonwealth Act Numbered One Hundred Thirty-Eight, the provisions of
Commonwealth Act Numbered Five Hundred Forty-One, Republic Act Numbered Five
Thousand One Hundred Eighty-Three, insofar as such provisions do not pertain to
constructions primarily for national defenses or security purposes:
Provided, however, That as far as
practicable, utilization of the services of qualified domestic firms in the
prosecution of projects financed under this Act shall be encouraged:
Provided, further, That in case where
international competitive bidding shall be conducted preference of at least
fifteen per centum shall be granted in favor of articles, materials or supplies
of the growth, production or manufacture of the Philippines:
Provided, finally, That the method and
procedure in the comparison of bids shall be the subject of agreement between
the Philippine Government and the lending institution.
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SEC. 9. Section 10 of the same Act is
hereby amended to read as follows:
SEC. 10. Construction, Repair Works, or Contracts for Services and Furnishing of
Supplies, Materials and Equipment Awarded Upon Public
Bidding: Exceptions. All works or
construction or repair of the
Corporation
as well as contracts for the services and furnishing of supplies, materials and
equipment shall be awarded by the
Corporation
in accordance with ceilings and rules imposed by the Board: Provided, however, That these do not
conflict with existing Executive Orders and/or presidential issuance on awards
of contracts.
SEC. 10.
Section 13 of the same Act is hereby further amended
to read as follows:
SEC. 13. Non-profit Character of the
Corporation;
Exemption from All Taxes, Duties, Fees, Imposts and
Other Charges by the Government and Government Instrumentalities. The Government shall be non-profit and
shall devote all its return form its capital investment as well as excess
revenues from its operation, for expansion.
To enable the
Corporation
to pay its indebtedness and obligations and in furtherance and effective
implementation of the policy enunciated in Section One of this Act, the
Corporation, including its subsidiaries,
is hereby declared exempt from the payment of all forms of taxes, duties, fees,
imposts as well as costs and service fees including filing fees, appeal bonds, supersedeas
bonds, in any court or administrative proceedings.
SEC. 11.
This Decree is hereby made part of the law of
the land, and all provisions of existing laws, executives and administrative
orders, or parts thereof in conflict with this Decree are hereby modified and
repealed.
SEC. 12.
This Decree shall take effect immediately.
Done
in the City of
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