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S E N A T E  
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Introduced by Senator S. R. Qsmefia 111 
EXPLANATORY NOTE 
The congestion in Metro Manila is not surprising considering the lopsided 
allocation of the national budget in favor of the National Capital Region. 
The lip service that has thus far been paid to countryside development 
must begin to be translated into real resource reallocations in favor of the 
countryside if the counterproductive and distortionary inequities in the present 
system are to be reversed. 
This bill seeks to establish a capital fund from which qualified rural electric 
cooperatives may draw resources to finance their initial capital requirements for 
the establishment, operation and maintenance of light and power systems in 
barangays. Electricity is a key input to modernization. Our farms, and the various 
farm and non-farm enterprises in the countryside cannot take off unless there 
exists a stable, reliable source of power in the local countryside areas. The rural 
electric cooperatives are the local non-government organizations that should be 
empowered to deliver electricity as the key to the development of our 
countryside. 
In view of the foregoing, early passage of this bill is earnestly requested. 
n, 
SERGIO OSMENA 111 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
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Introduced by Senator S. R. OsmeAa 111 
AN ACT 
PROVIDING FOR A BARANGAY ENERGIZATION FUND FOR RURAL 
ELECTRIC COOPERATIVES (RECs) TO ENERGIZE ALL BARANGAYS IN 
LUZON, VISAYAS AND MINDANAO 
Be if enacfed by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION I. Title. - This Act shall be known and cited as the "Barangay 
E ne r g i za t i o n F u n d . " 
SEC. 2. Declaration of Policy. - The State shall vigorously pursue total 
electrification of the countryside to spur the socio-economic development of the 
country . 
SEC. 
3. 
Barangay Energizafion Fund. - There is hereby created the 
Barangay Energization Fund which shall be used to provide funds to rural electric 
cooperatives for the establishments, operation and maintenance of light and 
power systems in barangays. 
SEC. 4. Scope. - This Act shalJ cover all barangays with rural electric 
cooperatives (RECs). 
SEC. 5. Allocafion of fhe Barangay Energizafion Funds. - The allocation 
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of the barangay energization fund to qualified rural electric cooperatives (RECs) 
shall be administered by a board composed of the Secretary of the Department 
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of Environment and Natural Resources as Chairman and the Administrator of the 


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National Electrification Administration and the President of the National Power 
Corporation as members. 
SEC. 6. Appropriafion., - There is hereby authorized to be appropriated 
out of any and all savings and unutilized funds in the National Treasury not 
otherwise appropriated the sum of Five hundred million pesos (P500,000,000.00) 
SEC. 7 .  Rules and Regulations. - The Department of Environment and 
Natural Resources shall promulgate the necessary rules and regulations and the 
implementing guidelines to carry out effectively the provisions of this Act. 
SEC. 8. Separabilify of Provision. - If any part or provision of this Act is 
held invalid or unconstitutional, the other parts or provisions thereof shall remain 
valid and effective. 
SEC. 9. Repealing Clause. - All laws, orders, issuances, rules and 
regulations or parts thereof inconsistent with this Act are hereby repealed or 
modified accordingly. 
SEC. 10. Effecfivify. - This Act shall take effect fifteen (15) days after 
publication in the Official Gazeffe. 
Approved,