Title
Franchise for Ice Plant Operation in Pampanga
Law
Republic Act No. 5134
Decision Date
Jun 17, 1967
Mexico Ice Plant is granted a 25-year franchise to construct and operate an ice plant and cold storage in Pampanga, allowing it to sell ice and provide cold storage services, subject to regulation by the Public Service Commission.
A

Manufacturing Capacity and Supply Obligations

  • The grantee is required to manufacture and supply ice up to the maximum capacity of its plant and cold storage facilities.

Standards for Equipment and Facilities

  • All apparatus and equipment used must be modern, safe, and of first-class quality.
  • The Public Service Commission has the authority to require the grantee to change or alter any apparatus or equipment at the grantee’s expense if reasonable public interest demands it.

Duration of Franchise and Conditions for Implementation

  • The franchise is valid for 25 years starting from the date the plant and cold storage begin operation or commence ice manufacture and distribution.
  • Construction of the plant and cold storage must begin within four years from the act’s approval.
  • Construction must be completed within six years from the approval date, with exceptions allowed for force majeure events such as acts of God, martial law, riots, or other uncontrollable causes.
  • The franchise will be null and void if these construction timelines are not met unless delayed for the prescribed reasons.

Financial Transparency and Reporting Requirements

  • The grantee’s books, records, and accounts are open to inspection by the provincial treasurer or authorized representatives.
  • The grantee must submit quarterly reports in duplicate showing gross receipts.
  • One copy of the quarterly report is forwarded by the provincial treasurer to the Auditor General for filing.

Regulatory Authority and Congressional Control

  • The franchise is subject to rate-setting provisions of Commonwealth Act No. 146, as amended.
  • The Congress of the Philippines retains the right to amend, alter, or repeal the franchise if public interest requires.

Equal Treatment Clause for Competing Franchises

  • If any competing entity is granted a franchise with more favorable terms, such terms automatically apply to Mexico Ice Plant’s franchise.
  • This provision ensures the grantee is not placed at a disadvantage compared to competitors.

Effectivity

  • The Act takes effect immediately upon approval.
  • The Act was enacted without the President’s executive approval on June 17, 1967.

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