AMENDMENT TO SECTION 5(b) OF REPUBLIC ACT NO. 6395 AS AMENDED BY PRESIDENTIAL DECREE NOS. 380, 395, 758 AND 1360.

WHEREAS, the power expansion program undertaken by the
National Power Corporation covering a period of ten (10) years would need
effective government support through equity contributions to NPC to sustain said
program;

WHEREAS, the present Revised Charter of National Power
Corporation limits the government equity contributions to an annual
appropriation of P200 Million to pay the balance of the unpaid subscription of
the government to the capital stock of the Corporation;

WHEREAS, to insure adequate funds and sustain the
Corporation’s power development, there is an imperative need to appropriate such
additional sums as may be necessary to meet the yearly financial requirements of
the power program;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution, do hereby
order and decree that —

SECTION 1. Section 5 of the Charter of the National Power
Corporation, Republic Act No. 6395, as amended by Presidential Decree Nos. 758
and 1360, is hereby further amended to read as follows:

“SECTION 5. Capital Stock of the Corporation—The
authorized capital stock of the Corporation shall be Fifty Billion Pesos
(P50,000,000,000.00) divided into Five Hundred Million (500,000,000) shares
having a par value of One Hundred Pesos each, which shares are not to be
transferred, negotiated, pledged, mortgaged, or otherwise given as security for
the payment of any obligation. The sum of Three Hundred Million Pesos of said
capital stock has been subscribed and paid wholly by the Government of the
Philippines in accordance with the provisions of Republic Act Numbered Four
Thousand Eight Hundred Ninety-Seven.

“The remaining Forty-Nine Billion Seven Hundred Million Pesos shall be
subscribed by the Government of the Republic of the Philippines and shall be
paid as follows:

“(a) The sum of Twenty-Nine Million Two Hundred Sixty-Seven Thousand Six
Hundred Pesos representing outstanding cost and interest of reparation goods
procured by the Corporation pursuant to the provisions of Republic Act Numbered
Seventeen Hundred Eighty-Nine, shall be additional paid-in subscription of the
Government of the Philippines for Two Hundred Ninety-Two Thousand Six Hundred
Seventy-Six shares of stock of said capital stock.

“(b) The balance of said subscription shall be paid by the conversion into
equity capital of the existing bonding indebtedness, cost of reparation goods
that may be allocated in the future and surpluses of the Corporation as well as
from such sums as shall be appropriated annually out of any funds in the
National Treasury not otherwise appropriated, be they collections from any or
all taxes accruing to the general funds or proceeds from loans, the issuance of
bonds, treasury bills or notes which are hereby authorized to be incurred or to
be issued by the Secretary of Finance for the purpose, such annual appropriation
to be programmed and released by the Budget Commission in accordance with the
schedule of cash requirements to be submitted by the Corporation until the
balance of the unpaid subscription of the Government to the capital stock of the
Corporation shall have been paid in full.”

SECTION 2. This Decree shall take effect immediately.

DONE IN THE CITY OF MANILA, this 11th day of June in the Year of Our Lord,
Nineteen Hundred and Seventy-eight.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JACOBO C. CLAVE
		Presidential Executive Assistant