Press Release
December 13, 2011

Senate approves additional budget for NPC

The Senate today approved on third and final reading a resolution granting the National Power Corporation (NPC) a supplemental budget of P6.39 billion to cover its operating expenses and debt servicing.

Senator Franklin Drilon, sponsor of Senate Joint Resolution No. 13, said the additional budget was necessary to allow the state-owned firm to continue servicing its off-grid areas.

As of September this year, Drilon explained, NPC had spent P7.07 billion of its total budget of P7.58 billion, leaving only P503, 281 for its operational expenses.

"Additional budget of P6.39 billion is necessary to cover NPC's requirements for fuel, purchasing power, rental of generating sets, new power provider subsidy, debt service and capital expenditures," Drilon said in his sponsorship speech.

Likewise, he said NPC needed to settle its debt amounting to P3.22 billion, which it incurred in 2009 and due for payment.

"It is necessary for the Senate and the House of Representatives to increase NPC's operating budget for fiscal year 2011 from P7.58 billion to P13.97 billion," Drilon stressed.

According to Drilon, the approval of the supplemental budget shall be subjected to certain conditions. For instance, he explained, NPC will not be allowed to augment or realign its budget for the current year. It shall "enter into obligations only to the actual cash receipts" and shall prioritize expenses for fuel and purchases power cost, generating set rental, net subsidy, capital outlay and other expenditures.

He said NPC will immediately settle its debt amounting to P3 billion as soon as it will receive money from the national government.

"In no case shall (NPC's) supplemental budget or any savings be used for the payment of salaries, advances of representation and transportation expenses or other personal allowances and benefits," Drilon stressed. Drilon said the proposed supplemental budget has the bi-partisan support of the Chamber in view of its necessity.

"This is a certified measure. Last Dec. 8, the President certified that this is an urgent measure and urged the immediate enactment of Senate Joint Resolution 13, together with House Joint Resolution 27. The majority and minority had signed the committee report and as Senate records will show, there are no less than 20 of our colleagues who signed the measure," Drilon said.

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