Question & AnswerQ&A (EXECUTIVE ORDER NO. 701)
The declared national policy is to attract foreign investment and trade in the country to promote economic growth, generate employment, upgrade technology, and accelerate national development.
Hanjin is investing about US$1.6 billion for a shipyard project in the Subic Bay Freeport Zone.
Hanjin's shipyard project in Subic Bay is expected to generate about 20,000 jobs, while the project in Mindanao is expected to generate about 30,000 jobs.
TRANSCO is directed to acquire and take possession of the Connection Assets consisting of a 15 km 230 kV Transmission Line and a 230 kV/22.9 kV Substation constructed by Hanjin in Subic.
TRANSCO shall advance the necessary funds to acquire and take possession of the Connection Assets. The responsibilities of government agencies like TRANSCO, DBM, and DOF and the repayment scheme will be detailed in a Memorandum of Agreement.
Yes, TRANSCO may collect Connection Charges as approved by the Energy Regulation Commission (ERC) from users of the Connection Assets where applicable.
NPC and TRANSCO shall provide discounted generation and transmission rates of US$0.0491 per kWh for years 0 to 6 and US$0.0600 per kWh for years 7 to 10 in the shipyard locations, subject to prevailing industrial retail rates adjustments and reporting to the ERC.
Yes, distribution rates collected by government entities such as the Philippine Economic Zone Authority are waived during the period covered by the grant of discounted generation and transmission rates by NPC and TRANSCO.
All heads of government departments, bureaus, offices, agencies, and instrumentalities are directed to give full support to the power infrastructure requirements and investment of Hanjin in the Subic Bay Freeport Zone and in Mindanao.
All executive orders, rules, regulations, and other issuances or parts thereof inconsistent with this Executive Order are revoked, amended, or modified accordingly.
If a portion or provision is declared unconstitutional, it shall not nullify the remaining portions or provisions as long as the remaining provisions can still be given effect.
The Executive Order took effect fifteen (15) days after its publication in a national newspaper of general circulation.