Authorizing the National power corporation to enter into negotiated contracts for the coal supply requirements of its power stations as well as those of its independent power producers, and for other purposes

EXECUTIVE ORDER NO. 354 July 5, 1996

AUTHORIZING THE NATIONAL POWER CORPORATION TO ENTER INTO NEGOTIATED CONTRACTS FOR THE COAL SUPPLY REQUIREMENTS OF ITS POWER STATIONS AS WELL AS THOSE OF ITS INDEPENDENT POWER PRODUCERS, AND FOR OTHER PURPOSES

WHEREAS, the Power Development Program of government for the period 1996 through 2005 requires the putting up of capacity additions of 2,150 MW imported coal-fired to the existing 850 MW imported coal-fired power stations;

WHEREAS, Republic Act No. 7638 mandates the adoption of comprehensive program for the efficient supply and economical use of energy consistent with the approved national economic plan;

WHEREAS, the Philippines is competing with the countries in Europe and in the Asia Pacific Region for the limited coal resources available in the world market;

WHEREAS, the tightness in the world coal supply has generated an upward trend in the coal price;

WHEREAS, power companies in Asian countries, such as Japan, South Korea, Hongkong and Taiwan, have secured long term fuel supply for their power stations from the coal producing countries;

WHEREAS,...

Login to see full content

Summary of Executive Order No. 354

Authorizing the National Power Corporation (NPC) to Procure Coal Supply
- Section 1: Authorizes the NPC Governing Board to procure coal supplies for its power stations and Independent Power Producers through negotiated contracts, notwithstanding procurement laws like Executive Order No. 301.
- Section 2: Allows NPC to enter into coal supply agreements with:
    - Foreign government instrumentalities on a government-to-government basis
    - Coal suppliers and traders
    - Coal mine operators
- Section 3: Requires NPC to formulate rules and procedures for implementing the Executive Order, subject to approval by the Department of Energy. These rules must conform to international norms and practices in coal transactions.
- Section 4: Repeals or modifies orders, issuances, rules, and regulations inconsistent with this Executive Order.
- Section 5: States that the Executive Order takes effect immediately.