A
collection of Philippine laws, statutes and codes
not
included or cited in the main
indices
of
the
Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 1722
|
PRESIDENTIAL DECREE NO. 1722
- CREATING THE NATIONAL COAL AUTHORITY DEFINING ITS POWERS AND
FUNCTIONS, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES
|
chanroblesvirtualawlibrary
WHEREAS,
overriding considerations of national interest recognize energy
self-sufficiency as a national priority;chanroblesvirtualawlibrary
WHEREAS, the accelerated coal development program is an important
component of the government's thrust towards energy self-sufficiency;chanroblesvirtualawlibrary
WHEREAS, the utilization of coal as an alternate source of power for
various industries necessities the assurance by the government of an
adequate and stable supply of coal for the use of such industries;chanroblesvirtualawlibrary
WHEREAS, in order to effect an integrated system of coal handling and
thus accomplish the maximum efficient utilization of coal, it is
imperative that a central government authority be established;chanroblesvirtualawlibrary
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:cralaw:red
Section 1. Short Title. — This decree shall be known
and may be cited as "The Charter of the National Coal Authority."
Section 2. Policy and Objectives. — Hand in hand with
the existing Government policy of accelerating the development of
indigenous conventional energy resources as well as non-conventional
energy alternatives with great potential for immediate and future
applications, it is hereby declared to be the policy of the State to
consider the maximum efficient utilization of coal as an important
segment of the Government's thrust towards energy self-sufficiency and
in sustaining the rapid growth and development of the national economy.
This policy shall be carried out by attaining the following objectives:
1) to provide and maintain an adequate and stable supply of coal,
whether imported or locally produced; 2) To establish or cause the
establishment, coordinate, control and regulate an effective, efficient
and economical logistics system as will adequately function to meet
domestic requirements; and 3) To set up the conditions that would
enable coal to substantially contribute to the country's energy
self-sufficiency program and thereby enhance the economic development
of the nation.
Section 3. Creation of the National Coal Authority. —
There is hereby created the National Coal Authority, hereinafter
referred to as the Authority, which shall be responsible for
implementing the policy and attaining the objectives set under this
Decree.
Section 4. Powers and Functions of the
Authority. — The Authority shall insofar as may be necessary,
reasonable and practicable, undertake and assume primary responsibility
for the shift in the use of fuel for industry from petroleum to coal,
and in order to assure an adequate and stable supply of coal, it shall
coordinate, integrate, systematize, control and regulate all activities
relating to the procurement, purchase, sale, importation, exportation
and handling of coal, including the pricing, receiving, storage,
transport, distribution, processing and delivery thereof. Additionally,
it shall:cralaw:red
a) Formulate and define, thru appropriate rules and
regulations, the necessary plans, programs and guidelines for carrying
out the policy and objectives laid down in this Decree;chanroblesvirtualawlibrary
b) Using the standards of necessity, reasonableness
and practicability, determine the industries that would have to shift
to coal as a source of fuel;chanroblesvirtualawlibrary
c) Set up the mechanism for the rapid shift in the
use of coal as fuel for industry including the priorities and timing
thereof, and extend such assistance as may be necessary therefor;chanroblesvirtualawlibrary
d) Adopt a system whereby the adequacy of coal supply
and stability of coal prices could be assured;chanroblesvirtualawlibrary
e) Procure and control or cause the procurement and
control of coal in such quantities and locations as may be foreseeably
needed;chanroblesvirtualawlibrary
f) Engage in, control, supervise and regulate the
purchase, sale, importation, exportation and supply of coal and their
derivatives;chanroblesvirtualawlibrary
g) Establish, construct, install or maintain in any
area within the national territory, ports and terminals, buildings,
facilities and infrastructures for receiving, processing, blending,
storing, transporting and distributing coal;chanroblesvirtualawlibrary
h) Undertake the efficient, effective, adequately
suitable and economical means of distributing, delivering, transporting
and/or shipping coal for purposes of reducing marketing cost and
ensuring stable supply;chanroblesvirtualawlibrary
i) Regulate and control the receiving, storage,
transportation, distribution, processing, blending, delivery and
handling of coal;chanroblesvirtualawlibrary
j) Regulate and control the utilization of coal as
fuel for industry and establish, set up and regulate the prices
thereof;chanroblesvirtualawlibrary
k) Coordinate with the Ministries of Energy,
Industry, and Natural Resources for the maximum efficient utilization
of coal;chanroblesvirtualawlibrary
l) Enter into contracts with any person or entity,
domestic or foreign, private or Government, for undertaking the various
aspects of its coal operations;chanroblesvirtualawlibrary
m) Borrow money from local and foreign sources,
guarantee or work for the guarantee of loans from Government and
private financial institutions, and engage in such financing activities
as may be necessary for its operations including relending to private
industries to facilitate their rapid shift to the use of coal as source
of fuel;chanroblesvirtualawlibrary
n) Any provisions of law to the contrary
notwithstanding, invest its funds, acquire assets, real or personal, or
interest therein, and encumber or otherwise dispose of the same as it
may deem proper and necessary in the conduct of its business;chanroblesvirtualawlibrary
o) Subject to existing regulations, establish and
maintain such communications systems, whether by radio, telegraph or
any other manner, without the need of a separate franchise therefor;chanroblesvirtualawlibrary
p) Any provision of law to the contrary
notwithstanding, determine through its Board of Governors, its
organizational structure and the number and positions of its officers
and employees; appoint such officers and employees; fix their salaries,
compensation, allowances, benefits, working hours and other terms and
conditions of employment; grant them leaves of absence under such
conditions as it may deem proper; discipline and/or remove them for
cause; and establish a recruitment and merit system for such offices
and employees;chanroblesvirtualawlibrary
q) Hire technical consultants and other experts at
rates competitive with private industry;chanroblesvirtualawlibrary
r) Accept detail of personnel from other government
agencies including government-owned or controlled corporations and pay
allowances thereto in addition to their regular pay, provided such
allowances do not exceed twenty-five per cent (25%) of the base pay of
such personnel and provided further that the payments to be made shall
come from funds out of the fines, fees and other charges which the
Authority may generate in the exercise of its regulatory powers;chanroblesvirtualawlibrary
s) Establish and maintain offices, branches,
agencies, sub-agencies, correspondents or other units anywhere as may
be needed by the Authority and reorganize or abolish the same as it may
deem proper;chanroblesvirtualawlibrary
t) Exercise the right of eminent domain as may be
necessary for the purpose for which the Authority is created;chanroblesvirtualawlibrary
u) Acquire easement over public and private land
necessary for the purpose of carrying out any work essential to its
coal operations, subject to payment of just compensation;chanroblesvirtualawlibrary
v) Establish and maintain a technical educational
system for the sustained development of the necessary manpower to
manage and operate its affairs and business;chanroblesvirtualawlibrary
w) Perform such acts and exercise such functions as
may be necessary for the attainment of the purposes and objectives
herein specified;chanroblesvirtualawlibrary
x) Promulgate such rules and regulations as may be
necessary to carry out the purposes of this Decree and impose a penalty
for the violation thereof, consisting a fine not exceeding One Hundred
Thousand Pesos (P100,000.00) or imprisonment not exceeding five (5)
years or both such fine and imprisonment;chanroblesvirtualawlibrary
y) Perform such other functions as may be provided by
law.
Section 5. Governing Body. — The Authority shall be
governed by a Board of Governors which shall be composed of the
Minister of Energy as ex-officio chairman, the Minister of Industry,
the Minister of Natural Resources, and the Minister of the Budget as
ex-officio members, and one other member, to be appointed by the
President of the Philippines from the private sector.
The Authority shall have an Executive Director to be appointed by the
President. The Executive Director who shall be the Chief Executive
Officer of the Authority shall be under the administrative supervision
and control of the Chairman. The Executive Director and the appointed
members of the Board shall serve for a term of five (5) years or until
their successors shall have been appointed and qualified. In case of
any vacancy in the Board, the same shall be filled by the President of
the Philippines for the unexpired term.
No person shall be appointed as Executive Director or member of the
Board unless he is a natural born citizen of the Philippines, at least
thirty-five (35) years old on the date of his appointment, of good
moral character, and of recognized executive ability and competence in
public or private employment.
Section 6. Duties and Responsibilities of the
Chairman of the Board and Executive Director. — The Chairman of the
Board of Governors and the Executive Director shall exercise such
powers and perform such duties as may be vested in them by the
Authority thru the Board of Governors.
Section 7. Auditor. — Any provision of law to the
contrary notwithstanding, the Commission on Audit shall appoint,
subject to the approval of the Board of Governors, a representative who
shall be the Auditor of the Authority and such personnel as may be
necessary to assist said representative in the performance of his
duties. The salaries, allowances and other emoluments of the Auditor
and his staff shall likewise be subject to the approval of the
Authority.
Section 8. Privileges and Incentives. — The
provisions of P.D. No. 1177 and any other law to the contrary
notwithstanding, the Authority shall be entitled to all the incentives
and privileges granted by law to private enterprises engaged in energy
exploration development and utilization.
In addition, the Authority shall exempt from all taxes, duties, fees,
imposts and all other charges imposed directly or indirectly by the
Republic of the Philippines, its provinces, cities, municipalities and
other government agencies and instrumentalities.
Other Government offices, agencies and instrumentalities including
government-owned or controlled corporations shall extend whatever
assistance may be needed by the Authority, including the detail of its
employees and officials to the Authority.
The employees of the Authority shall not, as a matter of right, be
subject to the provisions of the Government Service and Insurance
System as provided for under Rep. Act No. 180, as amended, as well as
any law, executive orders and decrees relating to salaries, allowances,
leaves of absence, retirement privileges, regular working hours and
other government employee benefits.
Section 9. Power to Grant Tax and Duty Exemptions in
times of Emergency. — The provisions of any law, executive order rule
or regulation to the contrary notwithstanding, the Authority may, in
the exercise of its regulatory powers and in times of serious shortfall
of supply of coal for the needs of domestic industries, and with the
concurrence of the Minister of Finance, authorize the importation of
coal in such quantities as it may determine, wholly or partially free
from taxes, duties, wharfage, special imposts and other importation
taxes, fees, and charges. The Authority shall, jointly with the
Minister of Finance, determine whether full or partial exemption will
be granted, on the basis of the prevailing coal prices and other
related expenses at the time of importation. The decision of the
Authority and the Minister of Finance as to the allowable exemption
rates shall be publicized at least one (1) month in advance prior to
effectivity and shall apply equally to all who may be allowed to import
coal at the time. Provided, that the period of effectivity of the
allowable exemption rates shall not be changed more often than once a
month.
Section 10. Exemption. — To ensure that the Authority
will be able to operate with utmost flexibility, it shall be exempted
from the existing requirements as to centralized Government purchasing
under LOI No. 755, the Public Bidding requirement under LOI No. 794,
the review of contracts by the Presidential Review Committee envisioned
under LOI No. 620 as amended by LOI Nos. 646, 653, 1012 and Memorandum
Circular No. 1012, and the provisions of P.D. Nos. 1585 and 1594
prescribing policies, guidelines, rules and regulations for
infrastructure contracts, and standard conditions for government
contracts, concessions licenses, etc. involving exploration,
development, exploitation and utilization of natural resources,
respectively.
Section 11. Government Financial Institution
Guarantees. — The provision of any law to the contrary notwithstanding,
any financial institution owned or controlled by the Government of the
Republic of the Philippines, other than the Central Bank, Government
Service and Insurance System and the Social Security System, is hereby
empowered to guarantee acceptance credits, loans, transactions,
undertakings, or obligations of any kind which may be incurred by the
Authority, whether directly or indirectly, in favor of any person,
association or entity, whether domestic or foreign.
Section 12. Loans. — The Authority, when specifically
authorized by the President of the Republic of the Philippines is
hereby authorized to contract loans, credit, in 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 any other entities, on such terms and conditions 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.
The Republic of the Philippines, through the President of the
Philippines or his duly authorized representative, may guarantee,
absolutely and unconditionally, as primary obligor and not as surety
merely, the payment of the loans, credit and indebtedness secured by
the Authority which may be over and above the amount which the
President of the Philippines is authorized to guarantee Rep. Act No.
6142, as amended, as well as the performance of all any of the
obligations undertaken by the Authority 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 subsection
and the payment of the principal, interest and other charges thereon,
as well as the importation of machinery, equipment, materials, supplies
and services, by the Authority as defined herein, paid from the
proceeds of any loan, credit or indebtedness incurred under this Act,
shall also be exempt from all direct as well as indirectly passed on
taxes, duties, fees, imposts, and all 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.
Section 13. Reports. — The Authority shall, within
three months after the end of every fiscal year, submit its annual
report to the President. It shall likewise submit such periodic or
other reports as may be required of it from time to time.
Section 14. Appropriations. — The amount of Fifty
Million Pesos (P50,000,000.00) is hereby set aside and appropriated out
of the Energy Special Fund created under Section 8(j) of Rep. Act No.
6173, as amended, to provide for the initial funding requirements of
the Authority for 1980. Thereafter, the appropriation of the Authority
shall be included in the General Appropriations Act.
Section 15. Separability Clause. — Should any
provision of this Decree be held unconstitutional, no other provision
hereof shall be affected thereby.
Section 16. Repealing Clause. — All laws, decrees,
executive orders, rules and regulations inconsistent herewith are
hereby repealed, amended, or modified accordingly.
Section 17. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 16th day of September, in the year of Our Lord, nineteen hundred
and eighty.
|
Back
to Home
- Back
to Main
chanroblesvirtuallawlibrary
Since 19.07.98
|
