SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Sessiou 
) 
SENATE 
S. No. 2{)7 
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 Lanao Power Consumers Federation, the 
Mindanao Commission on Women, 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-Pulangui Hydroelectric Powerplants. 
The reasons stated for opposing the privatization of the Agus-Pulangui Hydro Plants are as 
foJlows: 
. 
I 
1. 
The privatization of the Agus-Pulangui Hydro Power Plants will result in the 
loss of economic competitiveness of the power supply sector in Mindanao. Mindanao presently 
has the cheapest generation charge in the country. 
2. 
The Agus-Pulangui Hydro Plants provide more than SO% of Mindanao's power 
requirements at the cheapest cost (less than PI.OO/kwh) as against PS.OO or more for oil/fossil 
fuel-based power plants. 
3. 
The Agus-Pulangui are already fulJy 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-Pulangui Hydro Plants to just one (1) private buyer will 
monopolize more than SO% of Mindanao's power needs in the hands of just one corporation. 
"Mr. President, what the consumer will get out of alJ of this in the long term, let us say ten 
(10) years down road, '" is that the cost of power to the consumer will be lower." This was the 
sponsorship speech on the promise of the Electric Power Industry Act or EPIRA. (Journal of the 
Senate, 23 May 2000) 
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 S.32/Kwh 
2. Visayas 
P S.21 / Kwh 
3. Mindanao 
P 3.S2/Kwh 


, 
(Source: Comparative and Regional Electricity Price Trends - http://powertracker.doe.gov.ph) 
I 
In 2010, nine years after EPIRA promised cheaper costs of electricity, the ~verage retail 
prices of electricity were as follows: 
March 2011 Average Retail Price 
Grid 
Retail Charge 
1. Luzon 
P 9.84 I Kwh 
2. Visayas 
PS.19/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 followed by Cambodia, Hong Kong and Vietnam. 
(Source: http://powertracker.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 ninety-one (91 %) of all NAPOCOR powerplants 
including one (1) Hydroelectric Power Plant and two (2) power barges which were then moored 
in Mindanao. 
After selling ninety-one percent (91%) of NAPOCOR powerplants and paying USD18 
Billion after the passage of EPIRA in 2001 up to 2011, the prices of electricity have almost 
doubled and NAPOCOR's debts, as of30 September 2011, amounted to USDI6.7 Billion - more 
than its original USD16.4 Billion debt in 2001. (Source: http:www.psalrn.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-Pulangui riverbeds. 
On the occasion of the World Water Day in 2011, the Department of Environment and Natural 
Resources has stated that seventy percent (70%) of our country's available water of 160 Billion 
Cubic Meters is lost every year because of the lack of rain capturing devices ~nd irrigation 
facilities. Meanwhile, the Department of Agriculture and the National Irrigation "\uthority have 
embarked on a project to plant 1.5 Million trees in three (3) years throughout the country 
particularly in watershed areas. 
In view of the foregoing, the early approval of this measur 
G 
Senator 


----~--------
SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
207 
s. No. __ 
.s~n1ttl' 
{$ff,;. of 1I1.,~m.t"'U 
'13 JUl-j P4:41 
Introduced by Senator GREGORIO B. HONASAN II 
AGUS·PULANGUI PRIVATIZATION EXEMPTION ACT OF 2013 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
I 
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. 
(g) XXX XXX 
h) XXX XXX 


, , 
(i) XXX XXX 
U)XXXXXX 
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, 
2