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PRESIDENTIAL DECREE NO. 938
PRESIDENTIAL DECREE NO. 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
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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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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 affected;chanroblesvirtualawlibrary
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 interpretation of the taxing agencies
of the government on said provisions;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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; 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. Section 3 (h) of Republic Act No. 6395,
as amended, is hereby deleted. The new section shall read as follows:cralaw:red
"(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."
Section 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:cralaw:red
"(i) To construct works across, or otherwise, any
stream, watercourse, 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 abstract any
such crossings or intersections and shall grant the Corporation or its
representatives, the proper 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 property 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, substations,
plants or other facilities shall have been established; Provided,
finally, that after the said period no suit shall be brought to
question the said right-of-way, transmission lines, substations, plants
or other facilities nor the amounts of compensation and/or damages
involved."
Section 3. Section 3(j) of the same Act is hereby
amended to read as follows:cralaw:red
"(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 4. A new section shall be inserted to be
known as Section 3A of the same Act to read as follows:cralaw:red
"Sec. 3A. 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. chanroblesvirtualawlibrary
In determining the just compensation of the property or property sought
to be acquired through expropriation proceedings, the same shall —chanroblesvirtualawlibrary
"(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 to exceed ten percent
(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."
Section 5. Section 5 of the same Act is hereby
amended with the first and second paragraphs thereof to read as follows:cralaw:red
"The authorized capital stock of the Corporation is Eight Billion Pesos
(P8,000,000,000.00) divided into eighty million (P80,000,000) 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 Act 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:cralaw:red
xxx
xxx
xxx
Section 6. The first paragraph of Section 7 of the
same Act is hereby further amended to read as follows:cralaw:red
"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."
Section 7. Section 8(a), last paragraph of the same
Act is hereby further amended to read as follows:cralaw:red
"The total principal indebtedness of the Corporation under this
subsection, exclusive of interests, shall not at any time exceed Twelve
Billion Pesos (P12,000,000,000.00)."
Section 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:cralaw:red
"(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.
xxx
xxx
xxx
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 Eighty-Three, insofar as such provisions do
not pertain to constructions primarily for national defenses 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. chanroblesvirtualawlibrary
xxx
xxx
xxx
Section 9. Section 10 of the same Act is hereby
amended to read as follows:cralaw:red
"Sec. 10. Construction, Repair Works, or Contracts
for Services and Furnishing of Supplies, Materials and Equipment
Awarded Upon Public Bidding: Exceptions. — All works or 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."
Section 10. Section 13 of the same Act is hereby
further amended to read as follows: chanroblesvirtualawlibrary
"Sec. 13. Non-profit Character of the Corporation;
Exemption from All Taxes, Duties, Fees, Imposts and Other Charges by
the Government and Government Instrumentalities. — The Government shall
be non-profit and shall devote all its return form 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 fees including filing fees, appeal bonds, supersedeas bonds, in
any court or administrative proceedings."
Section 11. This Decree is hereby made part of the
law of the land, and all provisions of existing laws, executives and
administrative orders, or parts thereof in conflict with this Decree
are hereby modified and repealed. chanroblesvirtualawlibrary
Section 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.
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