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Act No. 2361 Section 22

Act No. 2361 Section 22

Section 22

SEC. 22. At any time after October twentieth, nineteen sale to Government, hundred and twenty-seven, if the city of Manila shall have acquired the franchises granted by Acts Numbered Four hundred and eighty-four and Fourteen hundred and forty-six, as amended, the Government of the Philippine Islands, or any political subdivision to which it may assign the right, may purchase and the grantee shall sell, all of its water, water rights, lands, buildings, lines, equipment, apparatus, rights under this franchise, and other property used by it for the generation, development, and distribution of electrical energy at a valuation based upon the net earnings of the grantee, the valuation to be determined, after hearing evidence, by the Supreme Court of the Philippine Islands, sitting as a board of arbitrators, whose decision, by a majority of the members thereof, shall be final: Provided, That in case the Government of the Philippine Islands cr any political subdivision to which it may assign the right purchases the same within twenty years from and after the date when the plant began operation, such valuation shall be at least an amount equal to the actual cost plus ten per cent, and also plus such additional amount as shall assure the grantee a return in cash equal to an average of not less than ten per cent on such actual cost for each year during the period of operation: And provided further, That the grantee shall adequately provide for maintenance and depreciation of its property and the safeguarding of its investment, and that all unexpended reserves making provision for the same shall become the property of the purchaser without additional compensation.

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Other provisions in Act No. 2361

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of July 4, 2026

CitationAct No. 2361 Section 22 (LawPlayer, data as of July 4, 2026)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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