MSME Development and Negosyo Centers Law

Grantee is obliged to manufacture and supply ice up to the full productive capacity of installed ice plants.
Cold storage services must likewise be provided up to the total installed capacity.

All equipment and appurtenances must be modern, safe, and of first-class quality.
The Public Service Commission may require changes or alterations to equipment at grantee's expense after due process if public interest so demands.

Franchise valid for 25 years from approval of the Act.
Must begin construction within 2 years and complete operations within 4 years from approval.
Extensions allowed only for reasons of force majeure, acts of God, martial law, riots, civil commotion, military usurpation, or other uncontrollable causes.
Grantee must notify the Public Service Commission in writing by the 7th year post-approval about constructed plants, including location and capacity.

Books, records, and accounts open for inspection by local treasurers or authorized representatives.
Quarterly reports of gross receipts to be submitted in duplicate to the corresponding treasurers, one copy forwarded to the Auditor General for filing.

Public Service Commission's jurisdiction limited to rate fixing and equipment regulation per Section 3.
Franchise remains subject to amendment, alteration, or repeal by Congress if public interest warrants.

If any competing entity receives more favorable franchise conditions, such conditions shall automatically apply to this grantee to prevent disadvantage.

Franchise may be transferred or assigned with Congressional approval to individuals or entities qualified under Commonwealth Act No. 146, as amended, for operating public services.

Grantee shall pay a franchise tax of 5% on gross earnings.
3% accrues to the National Government; 2% to the city and/or municipality where the franchise operates.