, . 
. 
' , 
FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'12 
MAY-7 
SENATE 
S. No. 3182 
Introduced by Senator GREGORIO B. HONASAN II 
EXPLANATORY NOTE 
Let us listen to our Mindanaonon brethren. 
The people of Mindanao, through the Association of Mindanao Rural Electric 
Cooperatives, the Mindanao Business Council, the Philippine Chamber of Commerce 
and Industry-Mindanao and the Confederation of Provincial Governors, City Mayor and 
Municipal Mayors League Presidents, among others, are speaking with one voice: No to 
the Privatization of the Agus-Pulangi Hydroelectric Powerplants. 
The reasons stated for opposing the privatization of the Agus-PuJangi Hydro 
Plants are as follows: 
1. The privatization of the Agus-Pulangi Hydro Power Plants will result to the loss 
of economic competitiveness of the power supply sector in Mindanao. 
Mindanao 
presently has the cheapest generation charge in the country. 
P2 :49 
2. The Agus-Pulangi Hydro Plants provide more than 50% of Mindanao's power 
,~ 
requirements at the cheapest cost (less than P1.00/kWh) as against P5.00 or more for 
oil/fossil fuel-based power plants. 
3. The Agus-Pulangi are already fully paid assets of the government. If sold to a 
new private owner, the new owner will have to recover its investment by increasing the 
rates to be paid by the people of Mindanao. 
4. Selling the Agus-Pulangi Hydro Plants to just 1 private buyer will monopolize 
more than 50% of Mindanao's power needs in the hands of just one corporation. 
When the EPIRA was passed in 2001 as Republic Act No. 9136, the average 
retail prices of electricity were as follows: 
June 2001 Average Retail Price 
Grid 
Retail Charge 
1. Luzon 
P 5.32 / Kwh 
2. Visayas 
P 5.21 / Kwh 
3. Mindanao 
P 3.52 / Kwh 
(Source: Comparative and Regional Electricity Price Trends -
http://powertarcker. doe. gov. ph) 


In 2010, nine years after EPIRA promised cheaper costs of electricity, the average 
retail prices of electricity were as follows: 
March 2011 Average Retail Price 
Grid 
Retail Charge 
1. Luzon 
P 9.84 I Kwh 
2. Visayas 
P 8.19 I Kwh 
3. Mindanao 
P 6.70 I Kwh 
(Source: 18th Status Report on EPIRA - Ave. Residential Rates of Electric 
Cooperatives) 
In 2003, the Philippines ranked 5th in terms of having the most expensive 
electricity in the Asian Region. 
Japan, as the most expensive, as followed by 
Cambodia, HongKong and Vietnam. (Source: http://powertarcker.doe.gov.ph) Today, 
the Philippines has the most expensive residential electricity rates in Asia. (Source: 
Department of Energy - Round Table Discussion on 20 April 2012) 
As of December 2010, the government, through the Power Sector Assets and 
Management Corporation (PSALM), privatized more than 91 % of all NAPOCOR 
powerplants including 1 Hydroelectric Power Plant and 2 power barges which were then 
moored in Mindanao. 
After selling 91 % of NAPOCOR powerplants and paying $18 Billion after the 
passage of EPIRA in 2001 up to 2011, the prices of electricity have almost doubled and 
NAPOCOR's debts, as of 30 September 2011, amounted to $16.7 Billion - more than it's 
original $16.4 Billion debt in 2001. (Source: http:www.psalm.gov.ph -
Liability 
Management) 
The people of Mindanao can also help the government by planting trees and 
reviving the watershed so as to help reduce the soil erosion and the siltation of the 
Agus-Pulangi riverbeds. 
On the occasion of the World Water Day this year, the 
Department of Environment and Natural Resources has stated that 70% of our country's 
available water of 160 Billion Cubic Meters is lost every year because of the lack of rain 
capturing devices and irrigation facilities. Meanwhile, the Department of Agriculture and 
the National Irrigation Authority have embarked on a project to plant 1.5 Million trees in 
3 years throughout the country particularly in watershed areas. 
In view of the foregoing, the early approval of this measure s e rnestly sought. 
Senator 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
'12 
t1AY -7 P 2 :49 
SENATE 
S. No. 3182 
Introduced by SENATOR GREGORIO B. HONASAN II 
AGUS-PULANGUI PRIVATIZATION EXEMPTION ACT OF 2012 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Section 47 of Republic Act No. 9136, otherwise known as the 
"Electric Power Industry Reform Act of 2001," is hereby amended, to read as 
follows: 
"SEC. 47. NPC Privatization. - Except for the assets of SPUG AND 
THE AGUS AND PULANGUI COMPLEXES, the generation assets, real 
estate, and other disposable assets as well as IPP contracts of NPC shall 
be privatized in accordance with this Act. Within six (6) months from the 
effectivity of this Act, the PSALM Corp. shall submit a plan for the 
endorsement by the Joint Congressional Power Commission and the 
approval of the President of the Philippines, on the total privatization of the 
generation assets, real estate, other disposable assets as well as existing 
IPP contracts of NPC and thereafter, implement the same in accordance 
with the following guidelines, except as provided for in Paragraph (f) 
herein: 
(a) XXX 
XXX 
(b) XXX 
XXX 
(c) XXX 
XXX 
(d) 
XXX XXX 
(e) 
XXX XXX 
(f) The Agus and the Pulangui complexes in Mindanao shall be 
excluded from among the generation companies that will be 
[initially] privatized. Their ownership shall be [transferred to PSALM 
Corp.] retained by NPC and both shall continue to be operated by 
the NPC. 
In) XXX XXX 


· . 
(h) XXX XXX 
(i) XXX xxx 
U) XXX XXX 
SEC. 2. The Department of Energy shall issue the necessary amendments to 
the Implementing Rules and Regulations of Republic Act No. 9136. 
SEC. 3. Separability Clause. - If any provision of this Act is declared invalid 
or unconstitutional, the other provisions not affected thereby shall remain valid 
and subsisting. 
SEC. 4. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations, issuance or parts thereof inconsistent with this Act are hereby 
repealed or amended accordingly. 
SEC. 5. Effectivity. - This Act shall take effect fifteen (15) days from the date 
of its publication in the Official Gazette or in at least in two (2) newspapers of 
general circulation. 
Approved,