AN ACT TO CREATE THE ELECTRIFICATION ADMINISTRATION
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AN ACT TO CREATE THE ELECTRIFICATION ADMINISTRATION
Republic Act No. 2717
June 19, 1960
Case Overview and Summary
Summary of Republic Act No. 2717 (Electrification Administration Act)Policy and Purpose:
- The policy is to furnish cheap and dependable electric power and facilities to promote and accelerate agricultural and industrial development in the country, particularly in rural areas. (Section 2)
Creation of Electrification Administration:
- An agency called the "Electrification Administration" is created. (Section 3)
- It is headed by an Administrator appointed by the President for a 10-year term with an annual salary of 12,000 to 25,000 pesos. (Section 3)
Powers and Functions of the Administrator:
- Make loans for electrification and furnishing electric energy, particularly in rural areas. (Section 4a)
- Plan, coordinate, program, and supervise efficient and dependable electric power production, transmission, and distribution systems. (Section 4b)
- Conduct studies, investigations, and reports on the condition and progress of electrification in any region, focusing on furnishing electric power to ultimate consumers. (Section 4c)
- Encourage and aid local governments and cooperative electric consumer associations in undertaking public electric power, heat, and light systems. (Section 4d)
- Publish and disseminate information related to electrification. (Section 4e)
Funding and Loans:
- The Government Service Insurance System, Social Security System, and Development Bank of the Philippines are directed to make loans up to 50 million pesos at 5% interest per annum to local governments, electric consumer cooperative associations, and Filipino electric franchise holders for constructing, operating, maintaining, and administering electric power systems or purchasing existing electric public services, upon recommendation of the Administrator and approval of the National Economic Council. (Section 5)
- A revolving fund of 5 million pesos is appropriated for the fiscal year 1960-1961 and the same amount for the next four fiscal years, subject to availability of funds. (Section 6)
- The President can allocate and transfer sums or assets received from Japanese reparations and loans under the Japanese Reparations Treaty to the revolving fund. (Section 6)
- The Administration can make loans from the revolving fund to local governments, electric consumer cooperative associations, and Filipino electric franchise holders for constructing and operating generating plants, transmission and distribution lines or systems for furnishing electric energy, particularly in rural areas. (Section 7)
- Loan terms: self-liquidating within 25 years, interest not exceeding 3% per annum (except for loans from Japanese reparations funds), adequate security, and profit of borrowing electric public service not exceeding 6% per annum of the rate base. (Section 7)
- The Administration can make loans for financing the wiring of premises in rural areas and the acquisition and installation of electrical appliances and equipment, to Filipino citizens, borrowers under Section 7, or suppliers/installers, with interest not exceeding 5% per annum. (Section 8)
- The Administrator can extend the time of payment of interest or principal of any loan made under this Act. (Section 9)
Property Acquisition and Disposal:
- The Administrator can bid for and purchase property pledged or mortgaged to secure loans, pay related costs, accept title in the name of the Republic of the Philippines, operate or lease the property, and sell the property on reasonable terms. (Section 10)
- Borrowers cannot sell or dispose of the property, rights, or franchises acquired under this Act without the Administrator's approval until the loan is repaid. (Section 10)
Administration and Personnel:
- The Administrator shall have a technical staff and other personnel as deemed necessary, with the Administrator appointing, fixing compensation, and determining duties. (Section 11)
- The Administrator can call upon any government department or agency for assistance or cooperation. (Section 12)
- The Administrator shall execute all electrification projects authorized in any Public Works Acts and can call for assistance and cooperation from the National Power Corporation and the Mechanical and Electrical Division of the Bureau of Public Works. (Section 12)
- The Administration shall present an annual report of its activities to Congress by the last day of January each year. (Section 13)
Prohibitions and Penalties:
- Members, officers, attorneys, agents, or employees of the Administration cannot participate in determining questions affecting corporations or associations in which they have an interest, with violation punishable by removal from office and a fine not exceeding 10,000 pesos or imprisonment not exceeding 5 years, or both. (Section 14)
- Officers or employees of the Administration and government officials with executive or supervisory authority over the Administration cannot become guarantors, endorsers, or sureties for loans from the Administration, with violation punishable by removal and a fine of 1,000 to 5,000 pesos or imprisonment for 1 to 5 years, or both. (Section 15)
- The Administrator cannot grant loans to relatives within the third degree of consanguinity or affinity or to corporations, partnerships, or companies where the Administrator is a shareholder, with violation being grounds for removal by the President and punishment as provided in Section 15. (Section 16)
- No fee, commission, gift, or charge can be exacted, demanded, or paid for obtaining loans from the Administration, with violation punishable by a fine of 1,000 to 3,000 pesos or imprisonment for 1 to 3 years, or both. (Section 17)
- Providing false information or causing the existence and production of false information for obtaining, renewing, or increasing a loan, or connivance or negligence by Administration officers or employees in allowing such false information, is punishable by a fine of not less than the loan amount nor more than three times the loan amount, or imprisonment for 3 months to 3 years, or both. (Section 18)
- Violation of any provision of this Act not specifically punished in the preceding sections, or aiding and abetting such violation, is punishable by a fine not exceeding 10,000 pesos or imprisonment for not more than 5 years. (Section 19)
Miscellaneous Provisions:
- If any provision of this Act is declared invalid, the remainder of the Act shall not be affected. (Section 20)
- All Acts or parts of Acts inconsistent with this Act are repealed or modified accordingly. (Section 21)
- This Act shall take effect upon its approval. (Section 22)
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AN ACT TO CREATE THE ELECTRIFICATION ADMINISTRATION
Republic Act No. 2717
•June 19, 1960
REPUBLIC ACT No. 2717
AN ACT TO CREATE THE ELECTRIFICATION ADMINISTRATION, AND OTHER PURPOSES
Section 1. This Act shall be known as the "Electrification Administration Act."
Section 2. It is declared to be the policy of the Republic of the Philippines to furnish cheap and dependable electric power and facilities in order to promote and accelerate the agricultural and industrial development of the country.
Section 3. For the purpose of carrying out the policy enunciated in this Act, specially in the rural areas, there is hereby created and established an agency to be known as the "Electrification Administration," all the powers of which shall be exercised by an Administrator, who shall be appointed by the President, with the consent of the Commission on Appointments, for a term of ten years and who shall receive an annual compensation of twelve thousand pesos, which may be increased to not more than twenty-five thousand pesos as the President may deem proper.
Section 4. The Administrator is authorized (a) to make loans for the electrification and the furnishing of...
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