Law Summary
Acquisition of Connection Assets
- TRANSCO (National Transmission Corporation) is to acquire and possess the connection assets built by Hanjin in Subic.
- The connection assets include a 15-kilometer 230 kV transmission line and a 230kV/22.9kV substation.
Funding, Repayment, and Memorandum of Agreement
- TRANSCO shall advance funds to acquire the connection assets immediately.
- Government agencies involved, such as TRANSCO, Department of Budget and Management (DBM), and Department of Finance (DOF), will define specific roles and repayment schemes.
- These details will be formalized in a Memorandum of Agreement.
TRANSCO Connection Charges
- TRANSCO may impose connection charges approved by the Energy Regulation Commission (ERC) on users of the connection assets where applicable.
Discounted Generation, Transmission, and Distribution Rates
- NPC (National Power Corporation) and TRANSCO will offer discounted generation and transmission rates for Hanjin's shipyard locations:
- US$0.0491 per kWh for years 0 to 6.
- US$0.0600 per kWh for years 7 to 10.
- If prevailing industrial retail rates fall below these discounted rates, rates granted to Hanjin shall decrease correspondingly.
- These discounted rates must be reported to the ERC.
- Distribution rates charged by any government entity (e.g., Philippine Economic Zone Authority) will be waived during the grant period.
Government Support Directive
- All heads of departments, bureaus, offices, agencies, and government instrumentalities are directed to fully support power infrastructure and investment needs of Hanjin in Subic and Mindanao.
Repealing Clause
- Any executive orders, rules, regulations or issuances conflicting with this order are revoked, amended, or modified accordingly.
Separability Clause
- If any provision is declared unconstitutional, it will not invalidate the remaining provisions, provided the rest can still be enforced.
Effectivity
- The order takes effect 15 days after publication in a national newspaper of general circulation.