Powers and Functions of the Corporation
- Continuous corporate existence unless otherwise law provides
- Right to prescribe by-laws and adopt a corporate seal
- Legal capacity to sue and be sued
- Conduct surveys and investigations for water power development nation-wide
- Take water from public sources for developmental purposes with due compensation for riparian owners
- Authority to modify water flows and construct necessary infrastructure such as power plants, dams, reservoirs, and transmission lines
- Operate and maintain gas, oil, steam engines, and other machinery for electric power generation
- Establish and administer power and lighting systems for government and public use
- Authority to set rates for electric power; rates not subject to Public Service Commission revision
- Acquire, lease, mortgage, and dispose of properties and rights necessary for fulfilling its purposes
- Construct works crossing public and private lands, ensuring safety and restoration, with right-of-way over government lands
- Power to enter private property with indemnification for actual damages
- Exercise eminent domain in accordance with law
- Contract indebtedness and issue bonds subject to Presidential and Finance Secretary approval, with a debt cap of twenty million pesos
- Exercise other necessary powers for accomplishing corporate purposes
Governance: National Power Board
- Corporate powers vested in a five-member National Power Board
- Members appointed by the President with Commission on Appointments consent
- Members serve three-year terms
- The Board organizes by electing a chairman and adopting rules
- Members receive per diem for meetings, with salary cap for the Board secretary
- Required to render periodic reports to the President and National Assembly
Bond Issuance and Financial Provisions
- Board may declare necessity for indebtedness and bond issuance by resolution
- Approval required from at least three Board members and the President upon Secretary of Finance's recommendation
- Terms of bonds include registration, minimum par value, 30-year maturity with possible early redemption, interest rates, payment modalities in gold coin or equivalent
- Bonds are tax-exempt within the Commonwealth
- Bonds receivable as government securities
- Creation and management of a sinking fund under Treasurer's custody
- Commonwealth government guarantees bond principal and interest payments with appropriated funds
- Corporation must refund any governmental payments made under guarantee
Administration and Staffing
- Daily operations managed by Manager, Assistant Manager, Treasurer, and other officers appointed by the President with consent
- Auditor General serves as ex-officio auditor
- Compensation defined by the Board
- No extra pay for government officers performing additional Corporation duties
Project Approval Process
- Manager submits feasibility reports for waterpower projects including engineering and economic aspects
- Board may appoint a consulting board of engineers and economist to review projects
- Board’s decision on project implementation is final
Contracting Procedures
- Construction or repair work costing three thousand pesos or more is let to lowest and most advantageous bidder with public notice
- Manager must require performance bonds from contractors
- Emergency repairs may be undertaken by administration or contract with Board approval
Penal Provisions for Interference
- Willful or malicious damage to Corporation’s works or interference with operations is a felony
- Penal sanctions include fines up to five thousand pesos and/or imprisonment up to two years
- Injured parties entitled to recover damages plus legal costs in civil action
Reservation and Use of Public Waters
- Unappropriated public waters suitable for power purposes reserved exclusively for the Corporation
- President may release water resources not needed for Corporation use upon recommendation
Electricity Supply to Government and Political Subdivisions
- National and local governments and government-owned or controlled entities must procure power from the Corporation when feasible
Appropriations and Financing
- Initial appropriation of two hundred fifty thousand pesos for organization and preliminary work
- Reimbursement of appropriations required once Corporation is financially able
- Bond issuance authorized following project decision
Effective Date
- Act takes effect upon approval on November 3, 1936