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Republic of the Philippines
HOUSE OF REPRESENTATIVES

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 4793

Introduced by Representative Carlos Roman L. Uybarreta, 1-CARE Party
List

AN ACT CONVERTING TO SUBSIDY THE EMERGENCY CALAMITY LOANS
EXTENDED BY THE NATIONAL ELECTRIFICATION ADMINISTRATION TO
THOSE AFFECTED BY TYPHOON LAWIN THAT WAS USED FOR THE
RECONSTRUCTION, REPAIR AND REHABILITATION OF DISTRIBUTION
LINES/SYSTEM AND OTHER INFRASTRUCTURE SUPPORT OF ELECTRIC
COOPERATIVES AND APPROPRIATING FUNDS FOR THE PURPOSE

Explanatory Note

Last October 16, 2016, Typhoon Lawin, the second most intense tropical
cyclone worldwide in 2016, slammed the country’s northeastern coast. With a
high of 325kph wind gusts, it made landfall in Penablanca, Cagayan. It leveled
houses, toppled trees and power lines, and blew off tin’ roofs. The damage
brought by Typhoon Lawin left twelve (12) electric cooperatives in three (3)
regions with more than Three Hundred Million Pesos (Php 300,000,000.00) loss
in substations, sub-transmission lines and distribution lines.

Initial assessment made by the National Electrification Administration
(NEA), Department of Energy (DOE) and the electric cooperatives show the
following damage:

REGION I
Ilocos Sur Electric Cooperative Php 4,923,907.00
La Union Electric Cooperative Php 3,492,000.00
REGION II
Cagayan Electric Cooperative I and II Php 110,716,933.00
Isabela Electric Cooperative I and II Php 31,943,843.00
CORDILLERA AUTONOMOUS REGION
Ifugao Electric Cooperative Php 3,639,253.00
Kalinga Electric Cooperative Php 68,300,000.00
Abra Electric Cooperative Php 61,340,946.00
Benguet Electric Cooperative and
Mt. Province Electric Cooperative Php 16,449,165.00

The total loss brought about by Typhoon Lawin is estimated to be around Php
300,805,947.00.

There is a need to restore the damaged distribution lines/system and
repair other infrastructure support of these electric cooperatives that require
inordinate amount of resources. However, NEA Electric Cooperatives are


designed not to earn profit so these electric cooperatives cannot build up funds
to respond to natural disasters such as typhoons and earthquakes. These
electric cooperatives are now on its knees and find it difficult to recover from
the losses. The electric cooperatives are forced to secure calamity loans which
are often converted to long-term loans for the reconstruction or rehabilitation
of their damaged facilities. The total cost to amortize these calamity loans are
then passed on to the member-consumers thru higher electricity rates. The
member-consumers already devastated both emotionally and financially by the
effects of Typhoon Lawin will be further burdened by these higher electricity
rates. The Government should immediately help these member-consumers by
extending assistance to the electric cooperatives which serve millions of
householders, cater to other basic services and move the wheels of the
economy. It is for this reason that a subsidy to the electric cooperatives is
requested.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 4753

Introduced by Representative Carlos Roman L. Uybarreta, 1-CARE Party

List
$A ist
Be it enacted by the Senate and the House of Representatives of the

Philippines in Congress assembled:

AN ACT CONVERTING TO SUBSIDY THE EMERGENCY CALAMITY LOANS
EXTENDED BY THE NATIONAL ELECTRIFICATION ADMINISTRATION TO
THOSE AFFECTED BY TYPHOON LAWIN THAT WAS USED FOR THE
RECONSTRUCTION, REPAIR AND REHABILITATION OF DISTRIBUTION
LINES/SYSTEM AND OTHER INFRASTRUCTURE SUPPORT OF ELECTRIC
COOPERATIVES AND APPROPRIATING FUNDS FOR THE PURPOSE

Section 1. Short Title.- This Act shall be known as the “Typhoon Lawin
Power Restoration and Rehabilitation Emergency Assistance Fund”

Section 2. Declaration of Policy. - It is hereby declared the policy of the
State to assist member-consumers of electric cooperatives that were adversely
affected by Typhoon Lawin on October 16, 2016 by extending to these
distressed electric cooperatives aid and relief for the restoration of electricity,
rehabilitation of power and transmission lines, and repair and reconstruction
of other infrastructure support thru the conversion of their emergency calamity
loans extended by the National Electrification Administration into subsidy.

Section 3. Statement of Objectives and Guidelines. - This Act is intended to
help member-consumers of electric cooperatives heavily damaged by Typhoon
Lawin in Regions I, If and CAR. It aims to subsidize the emergency calamity
loans extended by the National Electrification Administration that were used
for the immediate rehabilitation of damaged and destroyed transmission and
power lines and other infrastructure support.

Section 4. Guidelines in the Allocation of Funds. - The government’s fund
and resource herein appropriated shall be spent judiciously and effectively in
consonance with the principle of providing the greatest good for the greatest
number. Accordingly, the following guidelines shall be observed in allocating
the funds available under this Act.

(a) The Typhoon Lawin Power Restoration and Rehabilitation
Emergency Assistance Fund shall be used exclusively to subsidize the
calamity loans extended by National Electrification Administration that
were used for the rehabilitation of transmission and power lines and
other infrastructure support damaged by Typhoon Lawin;

(b) The rehabilitation and repair of the facilities, transmission and
power lines shall be in accordance with the Build Back Better ‘standard
of the National Electrification Administration.


Section 5. Appropriation Clause. - To carry out the purposes of this Act, the
sum of Three Hundred Million Eight Hundred Five Thousand Nine Hundred
Forty Seven Pesos (Php 300,805,947.00) is hereby appropriated out of the
Malampaya Fund and/or any available fund in the national treasury not
otherwise appropriated.

Section 6. Creation of the Typhoon Lawin Power Restoration and
Rehabilitation Emergency Assistance Fund. - For purposes of this Act, the
National Electrification Administration thru the Department of Energy is
hereby authorized, empowered and directed to promote, encourage and assist
public service entities, particularly electric cooperatives, to the end of achieving
the objective of making service available throughout the area devastated by
Typhoon Lawin as rapidly as possible.

(a) To subsidize the calamity loans that were used for the
rehabilitation of transmission and power lines and other infrastructure
ies that were damaged by Typhoon Lawin;

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(b) To ensure that the rehabilitation and repair of the facilities,
transmission and power lines shall be in accordance with the Build Back
Better standard of the National Electrification Administration;

(c)__ To plan and to develop to the extent possible and without charge
therefore, technical and professional assistance, guidance, information
and the results of any investigation, study or reviews conducted by NEA.

(c) To report to Congress and the President of the Republic of the
Philippines on the status of the Typhoon Nina Power Restoration and
Rehabilitation Emergency Assistance Fund and all other information and
data as will accurately reveal the progress being made toward the
achievement of the purpose of this Act; and to publish such report for
the dissemination and for use of the National government.

() To make proper evaluation, studies and recommendation on how to
make the lines, and equipment and facilities more durable and weather.
proof,

Section 7. Separability Clause. - If any provision of this Act shall be held
unconstitutional or invalid, the other provisions not otherwise affected shall
remain in full force and effect.

Section 8. Repealing Clause. - Any law, decree, or rules and regulations
which are inconsistent with or contrary to the provisions of this Act are hereby
amended or repealed.

Section 9. Effectivity. - This Act shall take effect upon its publication in at
least two (2) national newspapers of general circulation.

Approved.

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