Section 4Sec./Art. 4

Use of Malampaya Fund.

Two hundred eight billion pesos (₱208,000,000,000.00) of the proceeds of the net national government share from the Malampaya fund, shall be utilized for the payment of stranded contract costs and stranded debts transferred to and assumed by the Power Sector Assets and Liabilities Management Corporation (PSALM) pursuant to Section 49 of Republic Act No. 9136, the "Electric Power Industry Reform Act of 2001", including all anticipated shortfalls in the course of payment of such liabilities after applying the PSALMs collections from the privatization of the NPCs assets, independent power producers contracts, and proceeds from operations of existing assets: Provided, That annual allocations from the Malampaya fund for the payment of stranded contract costs and stranded debts including all anticipated shortfalls shall be included in the General Appropriations Act consistent with the fiscal program of the government, the procedure for which shall be provided in the implementing rules and regulations of this Act: Provided, That any remaining and future proceeds of the net national government share from the Malampaya fund over and above the amount indicated in this Act shall remain in the Special Account in the general fund to finance energy resource development and exploitation programs pursuant to Presidential Decree No.

910, Creating the Energy Development Board: Provided, That this provision shall not impair in any way the use or application of the remaining amount or future proceeds of the net national government share of the Malampaya fund to be used for energy resource development and exploitation programs pursuant to Presidential Decree No. 910.

The Department of Budget and Management (DBM) shall ensure the timely release of the amounts allocated and appropriated to the PSALM in accordance with its debt and independent power producer payment schedule.

In the event the stranded contract costs, stranded debts, and anticipated shortfalls in the course of the payment of such liabilities are fully paid before the exhaustion of the amount allocated in this Act, the remainder of the amount allocated shall be utilized to finance energy resource development and exploitation programs pursuant to Presidential Decree No. 910, Creating the Energy Development Board.

The universal charges for stranded contract costs and stranded debts currently being collected may be covered by the allocated amount from the Malampaya fund subject to the implementing rules and regulations of this Act.