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REPUBLIC ACT NO. 7578 - AN ACT
GRANTING THE IBAAN ELECTRIC AND ENGINEERING CORPORATION A FRANCHISE TO
CONSTRUCT, OPERATE AND MAINTAIN AN ELECTRIC LIGHT, HEAT AND POWER
SYSTEM IN THE MUNICIPALITY OF IBAAN, PROVINCE OF BATANGAS, AND FOR
OTHER PURPOSES Section 1. Subject to the provisions of the Constitution and the provisions of laws, orders or issuances not inconsistent herewith, the Ibaan Electric and Engineering Corporation, hereunder referred to as the grantee, its successors or assigns, is hereby granted a franchise to construct, operate and maintain an electric light, heat and power system for the purpose of generating and/or distributing electric light, heat and power system for sale in the Municipality of Ibaan, Province of Batangas, for a period of twenty-five (25) years from the date of effectivity of this Act. Sec. 2. The grantee shall have the right and
privilege to install, lay and maintain on all streets, public
thoroughfares, bridges and public places within the territory covered
by this franchise, poles, wires, transformers, capacitors, overhead
protective devices, pole line hardware and other equipment necessary
for the safe distribution of electric current to the public. Sec. 3. At such time that the National Power Corporation shall have established its line in the areas adjacent to or over the territory covered by this franchise, it shall make available its power and heat only after negotiations with and through or with the authority and consent of the grantee which shall be the exclusive distributor of whatever power the aforesaid corporation may make available to adjacent areas or within the territory covered by this franchise. Sec. 4. The grantee shall undertake the
electrification of all unenergized barangays in the Municipality of
Ibaan, Province of Batangas, within the radius of five kilometers (5
km.) from its existing lines within five (5) years and the remaining
unenergized barangays in the said municipality within fifteen (15)
years from the effectivity of this Act. Sec. 5. The rates for the sale of electricity,
heat and power by the grantee to its consumer shall be subject to the
regulations of the Energy Regulatory Board. Sec. 6. In the event that the Government should desire to operate and maintain for itself the system herein authorized, the grantee shall surrender its franchise and shall turn over to the Government all its equipment at fair market value. Sec. 7. In consideration of the franchise and privileges herein granted, the grantee, its successors or assigns shall be liable to pay the same taxes on their real estate, buildings and personal property, exclusive of this franchise, as other persons or corporations are nor or hereafter may be required by law to pay. In addition thereto, the grantee, its successors or assigns, shall pay a franchise tax equivalent to two percent (2%) of all gross receipts of the electric business transacted under this franchise or earnings thereof: provided, that the grantee, its successors or assigns shall be liable for income taxes payable under Title II of the National Internal Revenue Code pursuant to Sec. 2 of Executive Order No. 72 unless the latter enactment is amended or repealed, in which case the amendment or repeal shall be applicable thereto. The grantee shall file the return with and pay the tax due thereon to the Commissioner of Internal Revenue or his duly authorized representative in accordance with the National Internal Revenue Code and the return shall be subject to audit by the Bureau of Internal Revenue. Sec. 8. The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or entity, nor merge with any other corporation or entity without the prior approval of the Congress of the Philippines. Neither shall the controlling interest in the grantee be transferred, whether as a whole or in parts and whether simultaneously or contemporaneously, to any such person, firm, company, corporation or entity without the prior approval of the Congress of the Philippines. Any person or entity to which this franchise is validly sold, transferred or assigned shall be subject to all the same conditions, terms, restrictions and limitations of this Act. Sec. 9. This franchise herein granted shall be
subject to amendment, alteration or repeal by the Congress of the
Philippines when the public interest so requires and shall not be
interpreted as an exclusive grant of the privileges herein provided
for. Approved: May 27, 1992 |
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