Law Summary
Additional Paid-In Subscription by the Government
- An amount of Twenty-Nine Million Two Hundred Sixty-Seven Thousand Six Hundred Pesos (P29,267,600) representing the cost and interest of reparation goods procured is recognized as additional government paid-in subscription for 292,676 shares of the capital stock.
Payment of Remaining Subscription via Various Means
- The balance of the government’s subscription shall be paid through:
- Conversion of existing bonding indebtedness into equity capital.
- Cost of future allocated reparation goods.
- Surpluses of the Corporation.
- Annual appropriations from the National Treasury, from unappropriated funds including tax collections.
- Proceeds from loans and issuance of bonds, treasury bills, or notes authorized to be issued by the Secretary of Finance.
- These appropriations and fund releases are to be programmed and executed by the Budget Commission based on NPC’s cash requirement schedule.
- This process continues until the government’s unpaid subscription balance for the capital stock is fully paid.
Government Support and Financial Sustainability
- The amendment addresses the need to expand government equity contributions beyond the previous annual P200 million limit in order to provide financial support for NPC’s 10-year power expansion program.
- It ensures the availability of adequate funds to sustain NPC’s power development initiatives.
Effective Date
- The decree took effect immediately upon signing.
This law serves to strengthen and enhance the government’s equity support and funding mechanisms for the National Power Corporation’s capital stock to sustain its long-term power development program.