Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

16™ Congress
First Regular Session
1250

House Bill No, _~

Introduced by HON. ROGELIO J. ESPINA

EXPLANATORY NOTE

The BILIRAN ELECTRIC COOPERATIVE, Inc. (BILECO) in 2003 constructed the
electric distribution lines at Higatangan Island, Naval, Province of Biliran out of subsidy
from the national government released through the National Electrification
Administration. In 2006, the National Power Corporation-Small Power Utilities Group
(NPC-SPUG) provided the generator set for the operation in a Memorandum of
Agreement with BILECO and LGU Naval. After six (6) years of operation, BILECO finds it
impossible to continue with its operation lest both the Cooperative and the consumers
in the Island would suffer from losses high power rates respectively.

As an aftermath of the effects of losses, the BILECO Board of Directors in its
Board Resolution No. 35, Series of 2012, requested NPC-SPUG to take over the
operation of the generation facility in the Higatangan Island, in compliance with its
mandate under Sec. 70 of RA 9136 and Rule 13 of the IRR which provides in part that
NPC-SPUG shall be responsible for providing power generation and its associated power
delivery systems in area that are not connected to the transmission.

The Technical Services Department of BILECO mapped two feasible options to
wit: 1.) Construction and installation of submarine distribution line from
Naval to Higatangan Island with a total estimated cost of the project is
P153,414,774.00; and 2.) Construction and installation of submarine
distribution line with tapping point at Brgy. Jubay, Calubian, Leyte, franchise
area of LEYECO 5 with a total estimated project cost of P61, 171,790.00.



Although the second proposal would mean full control of the line will not rest to
BILECO, it is far lower in terms of funding requirement. With the pressing need to
stabilize the power distribution and rate of electricity in the island so as not to hamper
the impending developments in the area, it is an imperious call for the construction and
installation of submarine electric cable distribution line with tapping point at Brgy.
Jubay, Calubian, Leyte to Higatangan Island. Surely, this will help address the power
rate problem in the island.

Hence, the passage of this bill is earnestly sought.

Representative
Lone District, Biliran


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

16" Congress
First Regular Session

House Bill No,_2250

Introduced by HON. ROGELIO J. ESPINA

AN ACT MANDATING THE CONSTRUCTION AND INSTALLATION OF
SUBMARINE ELECTRIC CABLE DISTRIBUTION LINE WITH TAPPING POINT
AT BARANGAY JUBAY, CALUBIAN, LEYTE TO HIGATANGAN ISLAND,
PROVINCE OF BILIRAN AND TO PROVIDE FUNDS THEREOF

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

Section 1, The construction and installation of Submarine Electric Cable
Distribution Line with tapping point at Barangay Jubay, Calubian,
Leyte to Higatangan Island, Province of Biliran shall hereby be
implemented.

Section 2. For the purpose of compliance of this Act, the Department of
Energy and/or the National Electrification Administration shall
formulate and issue the necessary rules and regulations for the
effective implementation of this Act, including the necessary
support facilities.

Section 3. The amount necessary to carry out the provisions of this Act shall
be included in the General Appropriations Act of the year following
its enactment into law and thereafter.

Section 4. This Act shall take effect upon its approval.

Approved.