Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILLNo. 1323

Introduced by: HON. “KUYA” JOSE ANTONIO R. SY-ALVARADO.

EXPLANATORY NOTE

It is declared policy of the State, as amended by Section 9, Article II of the 1987
Constitution, that it “shall promote a just and dynamic social order that will ensure the
prosperity and independence of the nation and free the people from poverty through
Policies that provide adequate social services, promote full employment, a rising standard
of living, and an improved quality of life.”

Electricity is becoming or has become indispensable in the daily lives of the people,
both of the rich and the poor. Those who have no electricity are deprived of many conveniences.
It is used not only for lighting and household purposes but it also allows for mechanization of
many farming operations, permits activities to occur after daylight hours, reduces isolation
through the use of telecommunications, improves safety with the implementation of street
lights and lighting of road signs, improves delivery of health care by electrifying remote rural
clinics, reduces the need for candles and kerosene lamps with their inherent fire safety risks,
improves productivity in the agriculture and industrial sectors, and many other purposes.

Many of the people reside in remote areas are not supplied with electricity thus, they
suffer from great disadvantages and the government should ensure that the quality of their lives
must improve the soonest possible time. In most instances, the only obstacle in providing
electricity to the remote places is the lack of funds to buy electric posts which the electricity
distributors like Meralco did not include in their budgetary preparations since the areas are
labelled as not economically feasible.

In order to improve the lives of its entire people specially the disadvantaged ones living
in remote areas without electricity, the government, through the Department of Energy,
extend loans to the electricity distributors for the purchase of the much-needed el
intended for the electrification of these areas.

In view of the foregoing, approval of this bill is earnestly sou

“KUYA” JOSE ANTONIO R. SY-ALVARADO.
Representative

First District of Bulacan


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 1323

Introduced by: HON. “KUYA” JOSE ANTONIO R. SY-ALVARADO

AN ACT ESTABLISHING A LOAN FACILITY PROGRAM TO BARANGAYS
STILL HAVING AREAS WITHOUT ELECTRICITY

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

SECTION 1. This Act shall be known as the “Barangay Electrification Loan Assistance
Act of 2017”

SECTION 2. Declaration of Policy. It is hereby declared a policy of the State to expedite the
target of one hundred percent (100%) electrification of all residential areas in the country.

SECTION 3. Loan Assistance, The government, through the Department of Energy (DOE),
shall provide loan assistance to any barangay with declared residential areas that are still
without electricity. The primary reason for which is that the electricity distributor has no fund
allocated for the purchase of electric posts that would be used in these remote areas. The
maximum amount to be given as loan to each barangay is in the total amount of One Million
Five Hundred Thousand Pesos (PHP 1, 500,000.00) at any given time. This means that if the
loan obtained is less than the said amount, then the remaining amount could still be loaned to
the same barangay for the same purpose. If the maximum amount was loaned to the barangay
and payments have been made, the total amount paid can be loaned to the same barangay for
the same purpose.

SECTION 4. Payment of Loan. The loan from the national government through the DoE shall
be paid by way of the Land Bank of the Philippines by the barangay concerned using allocated
budget from its share in the Internal Revenue Allotment (IRA) on installment basis depending
upon the cash position of the latter. Provided, that the electrification of an area within its
jurisdiction is part of its approve Annual Investment Plan (AIP). Provided further, that the
electricity distributor that utilized electric posts purchased from the loan an additional amount
on top of the actual electricity used and shall deposit this amount to the account of the
concerned barangay. This additional amount is the monthly installment payment to the
barangay which in tun paid the load to the DoE. The electricity distributor shall collect
payments from the customers that benefited from the loan for a period of no less than one
hundred (100) moths from the actual electrification of the target area.


SECTION 5. Implementing Rules and Regulation. The DoE and DILG, in consultation with
relevant sectors and stakeholders, shall issue an Implementing Rules and Regulation guideline
for the effective implementation of this Act. The IRR shall include provisions that will address
the non-payment of loans established under this Act, as well as corresponding penalties that
may be imposed, It shall also provide for the collection and administration of loans, and other
issues of significance relative to this Act.

SECTION 6. Appropriators. This amount of One Billion Pesos (PHP 1,000,000,000.00)
hereby authorized to be appropriated from the National Treasury for the initial implementation
of this Act. Thereafter, such sums as may be necessary for the implementation of this Act shall
be appropriated as a distinct and separate item.

SECTION 7. Repealing Clause. Any presidential degree or issuance, executive order letter
of instruction, administration order, rule or regulation contrary to or inconsistent with the
provisions of this Act is hereby repealed, modified, or amended accordingly.

SECTION 8. Separability Clause. If any of the sections or provisions of this Act is held
invalid, all other provisions not effeetéd thereby shall remain valid and subsisting

SECTION 9. Effectivity, is Act shall take fifteen (15) days after its publication on the
Official Gazette or in atleast (2) newspapers of general circulation.