Granting the Condonation to the Basilan Electric Cooperative, Inc.

CONGRESS OF THE PHILIPPINES TWENTIETH CONGRESS First Regular Session HOUSE OF REPRESENTATIVES H. No. 8087 BY REPRESENTATIVES ALANO, DAGOOG, DE JESUS, ALVAREZ (J.), EMANO, VERGARA, SINGSON-MEEHAN, ACOSTA, ONGCHUAN, SALVAME, ARENAS, VILLA, YU (J.K.), SALVACION, YAP (A.), LAGBAS, LUMAYAG, BAUTISTA (J.M.), COLLANTES, SANTOS (M.A.), CRUZ (A.), SAGARBARRIA, GONZALES (R.), RODRIGUEZ (E.) AND NAZAL AN ACT GRANTING THE CONDONATION OF THE UNPAID INTERESTS, PENALTIES, AND SURCHARGES ON THE OVERDUE OBLIGATIONS OF THE BASILAN ELECTRIC COOPERATIVE, INC. TO THE NATIONAL POWER CORPORATION Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. All accumulated interests, surcharges, and penalties on the principal

obligations incurred by the Basilan Electric Cooperative, Inc. (BASELCO) to the National Power Corporation (NPC) amounting to Two billion six hundred five million 4 (P2,605,000,000.00), beginning from the year 1999 until the effectivity of this Act, are hereby condoned, thereby perpetually relieving BASELCO from the payment of said 6 interests, surcharges, and penalties: Provided, That the amount paid by BASELCO 7 covering accumulated interests, surcharges, and penalties, shall be applied to and 8 deducted from the principal obligation of BASELCO.

SEC. 2. A one-time restructuring program is hereby authorized to be adopted by the

NPC in favor of BASELCO over the unpaid principal obligations: Provided, That once a staggered payment scheme shall have been adopted between BASELCO and the

1 NPC on the principal obligations, BASELCO shall regularly submit to NPC its 2 performance improvement programs and the status of its implementation. 3 SEC. 3. Within sixty (60) days after the effectivity of this Act, NPC shall, in coordination 4 with the National Electrification Administration, promulgate the necessary rules and 5 regulations or the account restructuring program for the effective implementation of 6 this Act. Taking into account the legislative intent to grant the condonation of interests, surcharges, and penalties and the one-time restructuring program, the said rules and regulations shall not entail additional requirements that shall negate the purpose of this Act: Provided, That subject to BASELCO's circumstances, NPC shall be 10 empowered to determine the guidelines on which BASELCO is eligible to request for condonation and shall further require BASELCO to submit a Performance Improvement Plan to ensure payment compliance: Provided, further, That the failure of the NPC to promulgate the rules and regulations shall not prevent the implementation of this Act sixty days after its effectivity: Provided, finally, That should BASELCO neglect to pay its obligations on the restructured agreement, BASELCO shall be penalized in accordance with the provision of the restructuring agreement with 17 NPC.

SEC. 4. Upon the effectivity of this Act, imposition of interests, penalties, and

surcharges shall be suspended, and all payments in accordance with the account restructuring agreement shall be applied solely to principal amount until after all the outstanding principal debt is fully settied. 22 SEC. 5. If any provision of this Act is declared unconstitutional or invalid, the other parts or provisions hereof which are not affected thereby shall continue to be in full force and effect. 25 SEC. 6. All laws, decrees, executive orders and issuances, rules and regulations, or 26 parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly. 28 SEC. 7. This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation. Approved,