Authority to incur foreign loans.
Section 3
SEC. 3. Authority to incur foreign loans. — The National Irrigation Administration is authorized to contract loans, credits, in any convertible foreign currency or capital goods, and to incur indebtedness from time to time with foreign governments, or any international financial institutions or fund sources, the total outstanding amount of which, excluding interests, shall not exceed five hundred million United States dollars or the equivalent thereof in other currencies, on such terms and conditions as it shall deem appropriate for the accomplishment of its objectives, the provisions of existing laws to the contrary notwithstanding; and to enter into and execute contracts and other documents specifying such terms and conditions. The President of the Philippines, by himself, or through his duly authorized representatives, is hereby authorized to negotiate and contract with foreign governments or any international financial institution or fund sources in the name and on behalf of the National Irrigation Administration, one or several loans, for the purpose of promoting the irrigation program and the construction of multiple-purpose water resources projects. The President of the Philippines, by himself, or through his duly authorized representative, is hereby further authorized to guarantee, absolutely and unconditionally, as primary obligor and not as mere surety, in the name and on behalf of the Republic of the Philippines, the payments of the loans, credits and indebtedness up to the amount herein authorized, over and above the amounts which the President of the Philippines is authorized to guarantee under existing laws, as well as the performance of all or any of the obligations undertaken by the National Irrigation Administration in the territory of the Republic of the Philippines pursuant to loan agreements entered into with foreign governments or any international financial institutions or fund sources. The loans, credits and indebtedness contracted under this section and the payments of the principal, interest and other charges thereon, as well as the importation of machinery, equipment, materials, supplies and services, by the National Irrigation Administration, paid from the proceeds of any loan, credit, or indebtedness incurred under this act, shall also be exempted from all direct and indirect taxes, fees, imposts, other charges and restrictions, including import restrictions previously and presently imposed, and to be imposed by the Republic of the Philippines, or any of its agencies and political subdivisions.