NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
of t:.e&!•: tti-
24 AUG-7 P3:12
S. B. No.
SENATE
Introduced by SENATOR FRANCIS "TOL" N. TOLENTINO
AN ACT
PROVIDING FOR THE CONDONATION OF UNPAID OBLIGATIONS ON THE 
POWER CONSUMPTION OF THE PUBLIC UTILITIES DEPARTMENT - 
OLONGAPO CITY TO THE POWER SECTOR ASSETS AND LIABILITIES
MANAGEMENT CORPORATION
EXPLANATORY NOTE
This bill addresses the significant financial difficulties faced by the City 
Government of Olongapo following the privatization of its Public Utilities Department 
in 2013. The transfer of the department resulted in a substantial debt of 
Php7,675,579,299.64 as of March 2024, posing a serious threat to the city's financial 
stability.
In line with House Bill No. 9977, which was approved by the House of 
Representatives on March 19, 2024, this legislation aims to condone the city 
government's mounting debt incurred after the privatization of the Public Utilities 
Department. By relieving Olongapo City of this substantial debt burden, the bill aims 
to ease this financial strain and enable the city to allocate its resources more effectively 
towards essential services, development goals, and the well-being of its residents.
Condoning the outstanding debt owed to the Power Sector Assets and Liabiiities 
Management (PSALM) Corporation is crucial for the city government to better manage 
its finances and focus on improving pubiic services such as education, heaithcare, and 
infrastructure. By freeing up resources that are currently used for debt repayment, 
Olongapo City can enhance its ability to meet the needs of its residents and promote 
sustainable growth and development in the community.


Given the exigent financial circumstances confronting Olongapo City and the 
substantial impact of the outstanding debt on its annual budget, the immediate 
passage of this bill is necessary to facilitate the city's financial recovery, promote fiscal 
stability, and advance progress and prosperity for the people of Olongapo.
FRANC
L" N. TOLENTINO


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
S. B. No.
SENATE
2XlxL
fy ■
of ti-’ -'1
24 AUG-7 P3-.12
Introduced by SENATOR FRANCIS "TOLw N. TOLENTINO
AN ACT
PROVIDING FOR THE CONDONATION OF UNPAID OBLIGATIONS ON THE 
POWER CONSUMPTION OF THE PUBLIC UTILITIES DEPARTMENT - OLONGAPO 
CITY TO THE POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT 
CORPORATION
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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SECTION 1. Upon the effectivity of this Act, all outstanding financial obligations 
of the Public Utilities Department (PUD) - Olongapo City to the Power Sector Assets and 
Liabilities Management (PSALM) Corporation, including Value-Added Taxes (VAT), 
Generation Rate Adjustment Mechanism (GRAM), Incremental Currency Exchange Rate 
Adjustment (ICERA), Deferred Accounting Adjustments (DAA) charges. Automatic Cost 
Recovery Mechanism (ACRM) fuel, purchased power cost adjustment, foreign exchange 
adjustment and true-up adjustment charges representing the power consumption of PUD 
- Olongapo City, are hereby condoned.


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SEC. 2. Within sixty (60) days from the effectivity of this Act, the Department of 
Finance (DOF) shall, in coordination with PSALM, promulgate the necessary rules and 
regulations for the effective implementation of this Act. Taking into account the legislative 
intent to authorize a condonation of unpaid obligations, the said rules and regulations 
shall not entail additional requirements that shall negate the purpose of this Act: Provided, 
That failure of the DOF to promulgate the said rules and regulations shall not prevent the 
implementation of this Act sixty (60) days after its effectivity: Provided, further. That the 
DOF shall require the PSALM to submit bi-annually a list of delinquent accounts and 
demands made for payment from electric cooperatives and other clients.
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SEC. 3. If any provision of this Act is declared unconstitutional or invalid, the other
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parts or provisions hereof which are not affected thereby shall continue to be in full force
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and effect.
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SEC. 4. All laws, decrees, executive orders and issuances, rules and regulations, 
or parts thereof inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly.
SEC. 5. This Act shall take effect fifteen (15) days after its publication in the Official 
Gazette or in a newspaper of general circulation.
Approved,