Republic of the Philippines > RECEIVED
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

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Seventeenth Congress
Third Regular Session

HOUSE BILL NO.. bo

Introduced by
Representative Carlos Roman L. Uybarreta

EXPLANATORY NOTE

Zamboanga City Electric Cooperative, Inc. (ZAMCELCO) is a duly
organized cooperative under Presidential Decree No. 269, as amended by P.D.
No. 1645, and is under the general supervision and control of the National
Electrification Administration (NEA).

As of March 31, 2018, the total amount of ZAMCELCO’s outstanding
account with the Power Sector Assets and Liabilities Management Corporation
(PSALM) is THREE HUNDRED THIRTEEN MILLION SEVEN HUNDRED
SEVENTY TWO EIGHT HUNDRED NINETY TWO PESOS AND 54/100 (P
313,772,892.54).

ZAMCELCO’s power obligation to PSALM, including its unpaid bills to
other suppliers, which accumulated over the years has blown out of proportion
that it has become virtually impossible for ZAMCELCO to focus on the
improvement of their electricity-distribution services. At present, the said
cooperative can no longer make new investments and acquire additional assets
that would provide better, cheaper, and more efficient means of harnessing and
distributing reliable power throughout the area covered, primarily because the
funds intended for these uses are solely being directed towards the payment of
its monetary obligations.

It is for this reason that we take measures in order to apply leniency to
non-stock, non-profit electric cooperatives like ZAMCELCO by condoning all its
unpaid power obligations to PSALM, including all interests, surcharges and other
penalties from the commencement of the liability. This way, ZAMCELCO will be
able to return to its former condition of competent, successful and debt-free
operation. Condoning its unpaid obligations to PSALM allows the cooperative to
remain financially viable for local as well as foreign investors.

In consideration of the foregoing, the immediate passage of this bill is
earnestly requested.

ROMAN L. UYBARRETA



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

Seventeenth Congress
Third Regular Session

HOUSE BILL No.__ 8974

Introduced by
Representative Carlos Roman L. Uybarreta

AN ACT CONDONING THE OBLIGATION OF ZAMBOANGA CITY ELECTRIC
COOPERATIVE, INC. (ZAMCELCO) PAYABLE TO THE POWER SECTOR
ASSETS AND LIABILITIES MANAGEMENT CORPORATION (PSALM)

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

Section 1. Title. — This Act shall be known as the Condonation of the Obligation
of Zamboanga City Electric Cooperative, Inc. (ZAMCELCO) Act.

Section 2. Declaration of Policy. — It is hereby declared the policy of the State
to ensure and accelerate the total electrification of the country; ensure the
quality, reliability, security and affordability of the supply of electric power in the
country; and enable the electric cooperatives to cope with the changes brought
about in the industry by emerging technologies.

Section 3. Condonation of Obligation. — The principal obligation of ZAMCELCO
payable to PSALM as well as the interest and other surcharges as there may be
are hereby condoned.

Section 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after
its publication in at least two (2) newspapers of general circulation.

Approved.