Presidential Decree No. 938 (PD 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 effected;
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 interpretations 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
Philippines, by virtue of the powers vested in me by the Constitution,
do hereby order and decree as follows: 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,
water-course, 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 any such crossings or intersections and shall grant the
Corporation or its representatives, the pro-per 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 Philippines or any of its branches
and political subdivisions. The Corporation or its representatives may
also enter upon private property in the lawful performance or
prosecution of its business or purposes, including the construction of
the transmission lines thereon; Provided, that the owner of such
private properly shall be paid the just compensation therefor in
accordance with the provisions hereinafter provided; Provided,
further, that any action by any person claiming compensation and/or
damages shall be filed within five (5) years after the right-of-way,
transmission lines, sub-stations, plants or other facilities shall have
been established; Provided, finally, that after the said period
no suit shall be brought to question the said rights-of-way,
transmission lines, substations, plants or other facilities nor the
amounts of compensation and, or damages involved."
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."
Section 3-A of the same Act to read as follows:
"SEC. 3-A. 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 exceed ten per cent (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. 4. A new section shall be inserted to be known as
SEC. 5. Section 5 of the same Act is hereby amended with
first and second paragraphs thereof to read as follows:
"The authorized capital stock of the Corporation is Eight
Billion Pesos (8,000,000,000.00) divided into eighty million
(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 Philippines in accordance with
the provisions of Republic Art Numbered Four Thousand Eight Hundred
Ninety-Seven.
The remaining Seven Billion Seven Hundred Million Pesos shall be
subscribed by the Government of the Republic of the Philippines and
shall be paid as follows:
* * * * * * *
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 lead as follows:
"The total principal indebtedness of the Corporation under this
subsection, exclusive of interest, shall not at any time exceed Twelve
Billion Pesos (P12,000,000,000.00)."
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.
* * * * * * *
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 Eight-Three, insofar as such provisions do not
pertain to constructions primarily for national defense 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.
* * * * * * *
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 of 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, Imports and Other Charges by the
Government and Government Instrumentalities. The Corporation shall be
non-profit shall devote all its returns from 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 fess including filing fees, appeal
bonds, supersedes 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, executive 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 Manila, this 27th day of
May, in the year of Our Lord, nineteen hundred and seventy-six.
(Sgd.)
FERDINAND E. MARCOS
President
Republic of the Philippines
By the President:
(Sgd.)
JACOBO C. CLAVE
Presidential Executive Assistant
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
