Law Summary
Tax Exemption
- The grantee is exempt from paying all internal revenue taxes that are directly payable by it.
- This exemption applies specifically to taxes inherent to its operations under this franchise.
Government’s Right of Takeover
- The Government reserves the right to take over the hydroelectric power plant operation.
- In the event the Government elects to operate the plant itself, the grantee is obligated to surrender its franchise.
- The grantee must turn over all installations and serviceable equipment to the Government.
- The transfer will be done at cost, minus reasonable depreciation, ensuring fair compensation for the assets.
Effectivity of the Act
- The provisions of this Act become effective immediately upon its approval.
- The date of approval is acknowledged as August 23, 1956, triggering the timeline for franchise term and project completion.