PRESIDENTIAL DECREE NO. 1722, September 16, 1980
CREATING THE NATIONAL COAL AUTHORITY DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSE.
recognize energy self-sufficiency as a national priority;
WHEREAS, the accelerated coal development program is an
important component of the government’s thrust towards energy
self-sufficiency;
WHEREAS, the utilization of coal as an alternate source of
power for various industries necessitates the assurance by the government of an
adequate and stable supply of coal for the use of such industries;
WHEREAS, in order to effect an integrated system of coal
handling and thus accomplish the maximum efficient utilization of coal, it is
imperative that a central government authority be established;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
order and decree as follows:
SECTION 1. Short Title — This decree shall be known
and be cited as “The Charter of the National Coal Authority”.
SECTION 2. Policy and Objectives — Hand in hand
with the existing Government policy of accelerating the development of
indigenous conventional energy resources as well as non-conventional energy
alternatives with great potential for immediate and future applications, it is
hereby declared to be the policy of the State to consider the maximum efficient
utilization of coal as an important segment of the Government’s thrust towards
energy self-sufficiency and in sustaining the rapid growth and development of
the national economy. This policy shall be carried out by attaining the
following objectives: 1) to provide and maintain an adequate and stable supply
of coal, whether imported or locally produced; 2) To establish or cause the
establishment, coordinate, control and regulate an effective, efficient and
economical logistics system as will adequately function to meet domestic
requirements; and 3) To set up the conditions that would enable coal to
substantially contribute to the country’s self-sufficiency-program and thereby
enhance the economic development of the nation.
SECTION 3. Creation of the National Coal Authority
— There is hereby created the national Coal Authority, hereinafter referred
to as the Authority, which shall be responsible for implementing the policy and
obtaining the objectives set under this Decree.
SECTION 4. Powers and Functions of the Authority —
The Authority shall insofar as may be necessary, reasonable and practicable,
undertake and assume primary responsibility for the shift in the use of fuel for
industry from petroleum to coal, and in order to assure an adequate and stable
supply of coal, it shall coordinate, integrate, systematize, control and
regulate all activities relating to the procurement, purchase, sale,
importation, exportation on and handling of coal, including the pricing,
receiving, storage, transport, distribution, processing and delivery thereof,
Additionally, it shall:
- formulate and define, thru appropriate rules and regulations, the necessary
plans, programs and guidelines for carrying out the policy and objectives laid
down in this Decree; - Using the standards of necessity, reasonableness and practicability,
determine the industries that would have to shift to coal as a source of fuel; - Set up the mechanism for the rapid shift in the use of coal as fuel for
industry including the priorities and timing thereof, and extend such assistance
as may be necessary therefore; - Adopt a system whereby the adequacy of coal supply and stability of coal
prices could be assured; - Procure and control or cause the procurement and control of coal in such
quantities and locations as may be foreseably needed; - Engage in, control, supervise and regulate the purchase, sale, importation,
exportation and supply of coal and their derivatives; - Establish, construct, install or maintain in any area within the national
territory, ports and terminals, buildings, facilities and infrastructures for
receiving processing, blending, storing, transporting and distributing coals; - Undertake the efficient, effective, adequately and economical means of
distributing, delivering, transporting and/or shipping coal for purposes of
reducing marketing cost and ensuring stable supply; - Regulate and control the receiving storage transportation distribution,
processing, blending, delivery and handling of coal; - Regulate and control the utilization of coal as fuel for industry and
establish, set up and relate the prices thereof; - Coordinate with the Ministries of Energy, Industry and Natural Resources for
the maximum efficient utilization of coal; - Enter into contracts with any person or entity domestic or foreign, private
or Government, for undertaking the various aspects of its coal operations; - Borrow money from local and foreign sources, guarantee or work for the
guarantee of loans from Government and private financial institutions, and
engage in such financing activities as may be necessary for its operations
including relending to private industries to facilitate their rapid shift to the
use of coal as source of fuel; - Any provisions of law to the contrary notwithstanding invest its funds,
acquire assets, real or personal, or interest therein, and encumber or otherwise
dispose of the same as it may deem proper and necessary in the conduct of its
business; - Subject to existing regulations, establish and maintain such communications
systems, whether by radio, telegraph or any other manner, without the need of a
separate franchise therefor; - Any provision of law to the contrary notwithstanding, determine through its
Board of Governors, its organizational structure and the number and positions of
its officers and employees; appoint such officers and employees; fix their
salaries, compensations, allowances, benefits, working hours, leave and other
terms and conditions of employment; grant them leaves of absence under such
conditions as it may deem proper; discipline and/or remove them for cause; and
establish a recruitment and merit system for such offices and employees; - Hire technical consultants and other experts at rates competitive with
private industry; - Accept detail of personnel from other government agencies including
government owned or controlled corporations and pay allowances thereto in
addition to their regular pay, provided such allowances do not exceed
twenty-five per cent (25%) of the base pay of such personnel and provides
further that the payments to be made shall come from funds out of the fines,
fees and other charges which the Authority may generate in the exercise of its
regulatory powers; - Establishing and maintain offices, branches, agencies, sub-agencies,
correspondents or other units anywhere as may be needed by the Authority and
reorganize or abolish the same as it may deem proper; - Exercise the right of eminent domain as may be necessary for the purpose for
which the Authority is created; - Acquire easement over public and private land necessary for the purpose of
carrying out any work essential to its coal operations, subject to payment of
just compensation; - Establish and maintain a technical educational system for the sustained
development of the necessary manpower to manage and operate its affairs and
business; - Perform such acts and exercise such functions as may be necessary for the
attainment of the purposes and objectives herein specified; - Promulgate such rules and regulations as may be necessary to carry out the
purposes of this Decree and impose a penalty for the violation thereof,
consisting a fine not exceeding One Hundred Thousand Pesos (P100,000.00) or
imprisonment not exceeding five (5) years or both such fine and imprisonment; - Perform such other functions as may be provided by law.
SECTION 5. Governing Body — The Authority shall be
governed by a Board of Governors which shall be composed of the Minister of
Energy as ex-officio chairman, the Minister of Industry, the Minister of Natural
Resources, and the Minister of the Budget as ex-officio members, and one other
member, to be appointed by the President of the Philippines from the private
sector.
The Authority shall have an Executive director to be appointed by the
President. The Executive Director who shall be the Chief Executive Officer of
the Authority shall be under the administrative supervision and control of the
Chairman. The Executive Director and the appointed members of the Board shall
serve for a term of five (5) years or until their successors shall have been
appointed and qualified. In case of any vacancy in the Board, the same shall be
filled by the President of the Philippines for the unexpired term.
No person shall be appointed as Executive Director or member of the Board
unless he is a natural born citizen of the Philippines, at least (35) years old
on the date of his appointment, of good moral character and of recognized
executive ability and competence in public or private employment.
SECTION 6. Duties and Responsibilities of the Chairman
of the Board and Executive Director. — The Chairman of the Board of
Governors and the Executive Director shall exercise such powers and perform such
duties as may be vested in them by the Authority thru the Board of
Governors.
SECTION 7. Auditor. — Any provisions of law to the
contrary notwithstanding, the Commission on Audit shall appoint, subject to the
approval of the Board of Governors, a representative who shall be the Auditor of
the authority and such personnel as may be necessary to assist said
representative in the performance of his duties. The salaries, allowances and
other emoluments of the Auditor and his staff shall likewise be subject to the
approval of the Authority.
SECTION 8. Privileges and Incentives — The
provisions of P.D. No. 1177 any other law to the contrary notwithstanding, the
authority shall be entitled to all the incentives and privileges wanted by law
to private enterprises engaged in energy exploration development and
utilization.
In addition, the authority shall be exempt from all taxes, duties, fees,
imposts and all other charges imposed directly or indirectly by the Republic of
the Philippines, its provinces, cities, municipalities and other government
agencies and instrumentalities.
Other Government offices, agencies and instrumentalities including government
owned or controlled corporations shall extend whatever assistance may be needed
by the Authority, including the detail of its employees and officials to the
Authority.
The employees of the Authority shall not, as a matter of right be subject to
the provisions of the Government Service and Insurance System as
provided for under Rep. Act No. 180, as well as any law, executive
orders and decrees relating to salaries, allowances, leaves of absence,
retirement privileges, regular working hours and other government employee
benefits.
SECTION 9. Power to Grant Tax and Duty Exemptions in
times of Emergency — The provisions of any law, executive order rule or
regulation to the contrary notwithstanding, the authority may, in the exercise
of its regulatory powers and in times of serious shortfall of supply of coal for
the needs of industries, and with the concurrence of the Minister of Finance,
authorize the importation of coal in such quantities as it may determine, wholly
or partially free from taxes, duties, wharfage, special imposts and other
importation taxes, fees and charges. The Authority shall, jointly with the
Minister of finance, determine whether full or partial exemption will be
granted, on the basis of the prevailing coal prices and other related expenses
at the time of importation. The decision of the authority and the Minister of
Finance as to the allowable exemption rates shall be publicized at least one (l)
month in advance prior to effectivity and shall apply equally to all who may be
allowed to import coal at the time. Provided, that the period of
effectivity of the allowable exemption races shall not be changed more often
than once a month.
SECTION 10. Exemption — To ensure that the
authority will be able to operate with utmost flexibility, it shall be exempted
from the existing requirements as to centralized Government purchasing under LOI
No. 755, The Public bidding requirement under LOI No. 794, the review of
contracts by the Presidential Review Committee envisioned under LOI No. 620 as
amended by LOI Nos. 646, 653, 1012 and Memorandum Circular No. 1012, and the
provisions of P.D. Nos. 1585 and 1594 prescribing, policies, guidelines, rules
and regulations for infrastructure contracts, and standard conditions for
government contracts, concessions licenses, etc, involving exploration,
development, exploitation and utilization of natural resources,
respectively.
SECTION 11. Government Financial Institution Guarantees
— The provision of any law to the contrary notwithstanding, any financial
institution owned or controlled by the Government of the Republic of the
Philippines, other than the Central Bank, Government Service and Insurance
System and the Social Security System is hereby empowered to guarantee
acceptance credits, loans, transactions/undertakings, or obligations of any kind
which may be incurred by the authority, whether directly or indirectly in favor
of any person, association or entity, whether domestic or foreign.
SECTION 12. Loans — The Authority, when
specifically authorized by the President of the Republic of the Philippines
authorized to contract loans, credit, in any convertible foreign currency or
capital goods, and indebtedness from time to time from foreign governments, or
any international financial institutions or fund sources, or any other entities,
on such terms and conditions it shall deem appropriate for the accomplishment of
its purposes and to enter into and execute agreements and other documents
specifying such terms and conditions.
The Republic of the Philippines, through the President of the Philippines or
his duly authorized representative may guarantee, absolutely and
unconditionally, as primarily obligor and not as surety merely, the payment of
the loans, credit and indebtedness secured by the Authority which may be over
and above the amount which the President of the Philippines is authorized to
guarantee, under Rep. Act No. 5142, as amended, as well as the performance of
all of any of the obligations undertaken by the Authority in the territory of
the Republic of the Philippines pursuant to loan agreements entered into with
foreign governments or any international financial institutions or fund
sources.
The loans, credits and indebtedness contracted under this subsection and the
payment of the principal, interest and other charges thereon, as well as the
importation of machinery, equipment, materials, supplies and services, by the
Authority as defined herein, paid from the proceeds of any loan, credit or
indebtedness incurred under this Act, shall also be exempt from all direct as
well as indirectly passed on taxes, duties fees, imposts, and all other charges
and restrictions, including import restrictions previously and presently
imposed, and to be imposed by the Republic of the Philippines, or any of its
agencies, and political subdivisions.
SECTION 13. Reports — The Authority shall, within
three months after the end of every fiscal year, submit its annual report to the
President. It shall likewise submit such periodic or other reports as may be
required of it from time to time.
SECTION 14. Appropriations — The amount of Fifty
Million Pesos (P50,000.00) is hereby set aside and appropriated out of the
Energy Special Fund created under Sec. 8(j) of Rep. Act No. 6173, as amended, to
provide for the initial funding requirements of the Authority for 1980.
Thereafter, the appropriation of the Authority shall be included in the General
Appropriations Act.
SECTION 15. Separability Clause — Should any
provision of this Decree be held unconstitutional, no other provision hereof
shall be effected thereby.
SECTION 16. Repealing Clause — All laws, decrees,
executive orders, rules and regulations inconsistent herewith are hereby
repealed, amended, or modified accordingly.
SECTION 17. Effectivity — This Decree shall take
effect immediately.
Done in the City of Manila, this 16th day of September, in the year of Our
Lord, nineteen hundred and eighty.
(Sgd.) FERDINAND E. MARCOS
President of the
Philippines
By the President: (Sgd.) JUAN C. TUVERA Senior Presidential
Assistant