SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES) 
First Regular Session 
) 
'sl?tHltl' 
(11)(1,;, .. I t~._:i>""br~ 
'13 
DEC 19 P7 :13 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
Presidential Decree No. 910 mandated the creation of the MRlampaya Fund for the purpose of 
financing "energy resource development and exploitation programs and projects of . the 
government." The Malampaya Project is "a joint undertaking of the Philippine national 
govermnent and the private sector spearheaded by the Department of Energy (DOE) and 
developed and operated by Shell Philippines Exploration B. V. (SPEX) on behalf of joint venture 
partners Chevron Malampaya LLC and the PNOC Exploration Corporation.! The Malampaya 
Fund is derived from the proceeds of the Malampaya natural gas project off the coast of Palawan 
province that was started in 2001 with a current balance of P137.288 Billion, as recently 
confirmed by the Bureau of Treasury. 
" 
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Contrary however to the spirit of the law, during the previous administration, said Fund was 
allegedly siphoned off to finance anomalous transactions such as those involving dubious 
Foundations linked to Mrs. Janet Lim-Napoles, which resulted to a loss of900 Million pesos due 
to ghost deliveries of goods for projects under the govermnent. Said circumstance invited outragy 
from the citizenry and prompted the High Court to clip the discretionary powers of the President 
to touch the huge fund although it affirmed the constitutionality of utilizing the same insofar as 
energy resource development and exploitation progtams and projects of the govermnent are 
concerned. 
Aforesaid ruling, however, puts the Presideflt into a quandary on when he is allowed to tap the 
Fund. Case in point is the President's uncertainty whether he can use said Fund as subsidy for the 
direct benefit of electric end-users to 111inimize the financial brunt of the impending power hike 
of the largest power distributor in the country. 
It is, thus, incumbent upon Congress to promote public interest by once and for all amending the 
more than three-decade old law. It is against this backdrop that this measure seeks to revise said 
law by expressly authorizing the use of the Special Funds which include the Malampaya Fund t9 
finance the maintenance, rehabilitation, and replacement of energy infrastructure in preparation 
for and in response to natural and man-made calamities as well as to finance direct subsidy for 
energy consumption by end users in case of market failure. 
l 
In view of the foregoing, immediate passage of(his measure is eamestly sought. 
A~NY"~:=;LES 
IV 
Senator 
1 
Please 
see: 
Ms. 
Sara 
Sol1ven 
de 
Guzman, 
The 
Malampaya 
Story. 
Accessed 
from 
http://www.philstar.com/Ql1inionI2013110 128 11250232 fmalampaya-story on 12/16/2013. 
1 
. 
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SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
'13 
OEC 19 P7:13 
SENATE 
S.B.N:o. 2049 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
AUTHORIZING THE USE OF THE SPECIAL FUND TO FINANCE THE 
MAINTENANCE, 
REHABILITATION, 
AND 
REPLACEMENT 
OF 
ENERGY 
INFRASTRUCTURE IN PREPARATION FOR AND IN RESPONSE TO NATURAL 
AND MAN-MADE CALAMITIES AS WELL AS TO FINANCE DIRECT SUBSIDY FOR 
ENERGY CONSUMPTION BY END USERS IN CASE OF MARKET FAILURE . 
THEREBY AMENDING SECTION 8 OF PRESIDENTIAL DECREE NO. 910 
Be It enacted by the Senate and House of Representatives of the Republic of the Philippines in 
Congress assembled: 
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SECTION 1. Section 8 of Presidential Decree No. 910 is hereby amended to read as. 
2 
follows: 
. 
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Section 8. Appropriations. -'The sum of Five Million Pesos out of any 
4 
available funds from the National Treasury is hereby appropriated and authorized 
5 
to be released for the organization of the Board and its initial operations. 
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Henceforth, funds sufficient to fully carry out the functions and objectives of the 
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Board shall be appropriated every fiscal year in the General Appropriations Act. 
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8 
All fees, revenues and receipts of the Board from any and all sources including 
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receipts from service contracts and agreements such as application and processing 
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fees, signature bonus, discovery bonus, production bonus; all money collected 
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from concessionaires, representing unspent work obligations, fines and penalties 
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under the Petroleum Act of 1949; as well as the govermnent share representing 
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royalties, rentals, production 'share on service contracts and similar payments on 
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the exploration, development and exploitation of energy resources, shall form part 
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of a Special Fund to be used to finance energy resource development and 
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" , 
1 
exploitation programs and projects of the government, [and for such other 
2 
purposes as may he hereafter directed by the President), AS WELL AS TO 
3 
FINANCE· THE 
MAINTENANCE, 
REHABILITATION, 
AND 
4 
REPLACEMENT OF ENERGY INFRASTRUCTURE IN PREPARATION 
5 
FOR AND RESPONSE TO NATURAL AND MAN-MADE CALAMITIES, 
6 
AND TO FINANCE DIRECT SUBSIDY FOR ENERGY CONSUMPTION 
7 
BY END USERS IN CASE O~ MARKET FAILURE. 
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9 
SEC. 2. Repealing Provision. - All laws, executive orders or administrative orders, rules 
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and regulations or parts thereof which are inconsistent with this Act are hereby amended, 
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repealed or modified accordingly. 
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SEC. 3. Effectivity. - This Ac~ shall take effect fifteen (15) days following its publication 
14 
in the Official Gazette or in two (2) newspapers of general circufation. 
Approved, 
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2