Article 96p. 96

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

liquidating all NPC financial obligations and stranded

contract costs in an optimal manner.

The Corporation shall have its principal office and place

of business within Metro Manila.

The Corporation shall exist for a period of twenty five (25)

years from the effectivity of this Act, unless otherwise

provided by law, and all assets held by it, all moneys and

properties

belonging

to

it,

and

all

its

liabilities

outstanding upon the expiration of its term of existence

shall

revert

to

and

be

assumed

by

the

National

Government.

Section

51.

Powers.

-

The Corporation shall, in the

performance of its functions and for the attainment of its

objective, have the following powers:

(a) To formulate and implement a program for the sale

and privatization of the NPC assets and IPP contracts

and the liquidation of NPC debts and stranded contract

costs,

such liquidation to be completed within the

Corporation's term of existence;

(b) To take title to and possession of, administer and

conserve the assets and IPP contracts transferred to it; to

sell or dispose of the same at such price and under such

terms and conditions as it may deem necessary or

proper, subject to applicable laws, rules and regulations;

(c) To calculate the amount of the stranded debts and

stranded contract costs of NPC which shall form the

basis for ERC in the determination of the universal

charge;

(d) To liquidate the NPC stranded contract costs utilizing

proceeds from sales and other property contributed to it,

including the proceeds from the universal charge;

(e) To adopt rules and regulations as may be necessary

or proper for the orderly conduct of its business or

operations;

(f) To sue and be sued in its name;

(g) To appoint or hire, transfer, remove and fix the

compensation of its personnel; Provided, however, That

the Corporation shall hire its own personnel only if

absolutely necessary, and as far as practicable, shall avail

itself of the services of personnel detailed from other

government agencies;

(h) To own, hold, acquire, or lease real and personal

properties as may be necessary or required in the

discharge of its functions;

(i) To borrow money and incur such liabilities, including

the issuance of bonds, securities or other evidences of

indebtedness utilizing its assets as collateral and/or

through the guarantees of the National Government:

Provided, however, That all such debts or borrowings

shall have been paid off before the end of its corporate

life;

(j) To restructure existing loans of NPC;

(k) To collect, administer, and apply NPC's portion of the

universal charge;

(l) To relend to NPC successor gencos and TRANSCO

such amounts on such terms and conditions which shall

optimize the value and sale prices of said assets.

Section

52.

Power

Sector

Assets

and

Liabilities

Management

Corporation,

Meetings,

Quorum

and

Voting. - The Corporation shall be administered, and its

powers and functions exercised, by a Board of Directors

which shall be composed of the Secretary of Finance as

the

Chairman,

the

Secretary

of

Budget

and

Management,

the

Secretary

of

the

Department

of

Energy, the Director-General of the National Economic

and

Development

Authority,

the

Secretary

of

the

Department of Justice, the Secretary of the Department

of

Trade

and

Industry

and

the

Secretary

of

the

Department

of

Agriculture

as

ex-officio

members

thereof.

The Board of Directors shall meet regularly and as

frequently as may be necessary to enable it to discharge

its functions and responsibilities. The presence at a

meeting of four (4) members shall constitute a quorum,

and the decision of the majority of three members

present at a meeting where there is quorum shall be the

decision of the Board of Directors.

Section 53. Powers of the President of PSALM Corp. - The

President of PSALM Corp. shall be appointed by the

President of the Philippines. In the absence of the

Chairman,

the

President

shall

preside

over

Board

meetings. The PSALM Corp. President shall be the Chief

Executive Officer of PSALM Corp.

The President of PSALM Corp. shall have the following

powers and duties:

(a) To execute and administer the policies and measures

approved by the Board, and take responsibility for the

efficient discharge of management functions;

(b) To oversee the preparation of the budget of PSALM

Corp.;

(c) To direct and supervise the operation and internal

administration of PSALM Corp. and, for this purpose, may

delegate

some

or

any

of

his

administrative

responsibilities and duties to other officers of PSALM

Corp;

(d) Subject to the guidelines and policies set up by the

Board, to appoint and fix the number and compensation

of subordinate officials and employees of PSALM Corp;

and

for

cause,

to

remove,

suspend,

or

otherwise

discipline any subordinate employee of PSALM Corp;

(e) To submit an annual report to the Board on the

activities and achievements of PSALM Corp. at the close

of each fiscal year and upon approval thereof, submit a

copy to the President of the Philippines and to such

other agencies as may be required by law;

(f)

To

represent

PSALM

Corp.

in

all

dealings

and

transactions

with

other

offices,

agencies,

and

instrumentalities

of

the

Government

and

with

all

persons and other entities, private or public, domestic or

foreign; and

(G) To exercise such other powers and duties as may be

vested in him by the Board from time to time.

Section 54. Exemption from the Salary Standardization

Law. - The salaries and benefits of employees in the

PSALM Corp. shall be exempt from Republic Act No.

6758 and shall be fixed by the PSALM Corp. Board.

Section 55. Property of the PSALM Corp. - The following

funds, assets, contributions and other property shall

constitute the property of the PSALM Corp.:

(a) The generation assets, real estate, IPP contracts,

other disposable assets of NPC, proceeds from the sale

or disposition of such assets and the residual assets from

B-O-T, R-O-T, and other variations thereof;

(b) Transfers from the national government;

© 2018 Compiled by RGL

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