Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17* Congress
First Regular Session

HOUSE BILL NO. 5319

Introduced by: HON. JOSE ANTONIO R. SY-ALVARADO

EXPLANATORY NOTE

It is a declared policy of the State, as mandated by Section 9, Article II of the 1987
Constitution, that it “shall promote a just and dynamic social order that will ensure the
prosperity and independence of the nation and free the people from poverty through policies
that provide adequate social services, promote full employment, a rising standard of living,
and an improved quality of life.”

Electricity is becoming or has become indispensable in the day to day lives of the people,
both of the rich and the poor. Those who have no electricity are deprived of many conveniences.
It is used not only for lighting and household purposes but it also allows for mechanization of
many farming operations, permits activities to occur after daylight hours, reduces isolation
through the use of telecommunications, improves safety with the implementation of street lights
and lighting of road signs, improves delivery of health care by electrifying remote rural clinics,
reduces the need for candles and kerosene lamps with their inherent fire safety risks, improves
productivity in the agricultural and industrial sectors , and many other purposes.

Many of those who reside in remote areas are not supplied with clectricity thus, they
suffer from great disadvantages and the government should ensure that the quality of their lives
must improve the soonest possible time. In many instances, the only obstacle in providing
electricity to these remote places is the lack of funds to buy electric posts which the electricity
distributors like Meralco did not include in their budgetary preparations since the areas are
labeled as not economically feasible.

In order to improve the lives of its entire people specially the disadvantaged ones living
in remote areas without electricity, the government, through the Department of Energy, should
extend loans to the electricity distributors for the purchase of the much needed electric posts
intended for the electrification of these areas.

In view of the foregoing, approval of this bill is earnestly sought.


HOUSE OF REPRESENTATIVES
Quezon City

17" Congress
First Regular Session

HOUSE BILL NO. 5319

Introduced by: HON. JOSE ANTONIO R. SY-ALVARADO

“AN ACT ESTABL ING A LOAN FACILITY PROGRAM TO.
BARANGAYS STILL HAVING AREAS WITHOUT ELECTRICITY”

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. This Act shall be known as the “Barangay Electrification Loan Assistance Act
of 2017."

SECTION 2. Declaration of Policy. It is hereby declared a policy of the State to expedite the
target of one hundred percent (100%) electrification of all residential areas in the country.

SECTION 3. Loan Assistance. The government, through the Department of Energy (DoE),
shall provide loan assistance to any barangay with declared residential areas that are still without
electricity, the primary reason for which is that the electricity distributor has no fund allocated
for the purchase of electric posts that would be used in these remote areas, The maximum
amount to be given as loan to each barangay is in the total amount of One Million Five
Hundred Thousand Pesos (P1,500,000.00) at any given time. This means that if the loan
obtained is less than the said amount, then the remaining amount could still be loaned to the
same barangay for the same purpose. If the maximum amount was loaned to the barangay and
payments have been made, the total amount paid can be loaned to the same barangay for the
same purpose

SECTION 4. Payment of Loan. The loan from the national government through the DoE: shall
be paid by way of the Land Bank of the Philippines by the barangay.concerned using allocated
budget from its share in the Internal Revenue Allotment (IRA) on installment basis depending
upon the cash position of the latter. Provided, that the electrification of an area within its
jurisdiction is part of its approved Annual Investment Plan (AIP). Provided further, that the
electricity distributor that utilized electric posts purchased from the proceeds of the loan, shall
charge their customers in the area that benefited from the loan an additional amount on top of the
actual electricity used and shall deposit this amount to the account of the concerned barangay.
This additional amount is the monthly installment payment to the barangay which in turn paid
the loan to the DoE. The electricity distributor shall collect payments from the customers that
benefited from the loan for a period of not less than one hundred (100) months from the actual
electrification of the target area.



SECTION S. Implementing Rules and Regulation. The DoE and DILG, in consultation with
relevant sectors and stakeholders, shall issue an Implementing Rules and Regulations guideline
for the effective implementation of this Act. The IRR shall include provisions that will address
the non-payment of loans established under this Act, as well as corresponding penalties that may
be imposed. It shall also provide for the collection nand administration of loans, and other issues
of significance relative to this Act.

SECTION 6. Appropriations. The amount of One Billion Pesos (Php 1,000,000,000.00) is
hereby authorized to be appropriated from the National Treasury for the initial implementation of
this Act. Thereafter, such sums as may be necessary for the implementation of this Act shall be
appropriated as a distinct and separate item.

SECTION 7. Repealing Clause. Any law, presidential degree or issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary to or inconsistent with the
provisions of this Act is hereby repealed, modified, or amended accordingly.

SECTION 8. Separability Clause. If any of the sections or provisions of this Act is held
invalid, all other provisions not affected thereby shall remain valid and subsisting.

SECTION 9. Effectivity. Thjs“Act shall take effect fifteen (15) days after its publication in the
Official Gazette ot in at legst two (2) newspapers of general circulation.

Approved,