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PHILIPPINE LAWS, STATUTES & CODES
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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 10 -
CREATING AN INTER-AGENCY COMMITTEE TO REVIEW ALL CONTRACTS ENTERED INTO
BY NPC PURSUANT TO REPUBLIC ACT NO. 6957 AS AMENDED, OTHERWISE KNOW AS
THE BUILD-OPERATE-TRANSFER (BOT) LAW
Whereas, the National Power Corporation
(NPC), in response to the energy crisis has entered into take-or-pay
contracts or arrangements of similar nature with Independent Power
Producers (IPPs) / Facility Operators pursuant to the BOT
Law.
Whereas, these take-or-pay contracts between NPC and the IPPs/Facility
Operators are perceived to contain onerous provisions grossly
disadvantageous to the government that engendered high electricity
rates;
Whereas, the obligations arising from these take-or-pay contracts far
exceeded NPC's ability to pay, due to its assumption of currency and
market risks;
Whereas, these obligations further accumulated and remained unrecovered
resulting into stranded contracted costs of NPC;
Whereas, NPC, saddled with these stranded contracted costs is currently
suffering substantial financial losses, which if unabated shall cause
its financial collapse;
Whereas, in order to mitigate high electricity rates, stranded
contracted costs and save NPC from financial hemorrhage, there is the
urgent need to review all contracts of NPC entered into with
IPPs/Facility Operators with the end in view of renegotiating the same.
NOW, THEREFORE, I GLORIA MACAPAGAL-ARROYO, President of the Republic of
the Philippines, by virtue of the powers vested in me by law, do hereby
order;
Section 1.
An Inter-Agency Committee ("the Committee") is hereby created to review
all contracts entered into by the National Power Corporation pursuant
to Republic Act No. 6957 as amended, otherwise known as the
Build-Operate-Transfer (BOT) Law with IPPs/Facility Operators.
Sec. 2.
The Committee shall be composed of the representatives from the
Department of Finance, Department of Energy, Department of Justice, the
National Economic Development Authority and the private sector to be
appointed by the President.
The representative of the National Economic Development Authority shall
act as chair of the Committee with the other departments as members
thereof.
The National Power Corporation shall act as the Secretariat of the
Committee and provide necessary information, data, documentation,
resource persons to fully enable the Committee to perform its functions.
The Committee shall immediately convene upon effectivity of this
Administrative Order and shall have a life of six months from the
creation thereof, extendible to a reasonable period upon recommendation
of the Committee and approval of the Office of the president.
Sec. 3.
The
Committee shall have the following functions:
1.
2.
3.
4.
5.
6.
7.
Sec. 4.
This Executive Order shall take effect immediately
DONE in the City of Manila,
this 26th day of May, in the Year of our LORD, Two Thousand and One.
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