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MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ ADMINISTRATIVE ORDER NO. 14, August 06, 2001 ]

ORGANIZING THE INTER-AGENCY COMMITTEE TO REVIEW ALL CONTRACTS ENTERED INTO BY THE GOVERNMENT WITH INDEPENDENT POWER PRODUCERS AND REPEALING ADMINISTRATIVE ORDER NO. 10 DATED MAY 26, 2001

WHEREAS, an Inter-Agency Committee was created pursuant to Administrative Order (A.O.) No. 10 dated May 26, 2001, to review all contracts entered into by the National Power Corporation with Independent Power Producers (IPP);

WHEREAS, subsequently, an inter-agency committee was created pursuant to Section 68 of the Electric Power Industry Reform Act of 2001 (Republic Act No. 9136) to undertake a thorough review of all IPP contracts;

WHEREAS, in view of the inter-agency committee created under the Electric Power Industry Reform Act of 2001, there is no longer a need for the Inter-Agency Committee created under A.O. 10;

WHEREAS, there is a need to organize the inter-agency committee created under the Electric Power Industry Reform Act of 2001.1aшphi1

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Organization of the Inter-Agency Committee. – The Inter-Agency Committee (“Committee”) created pursuant to Section 68 of the Electric Power Industry Reform Act of 2001, shall be organized as follows:

a. Composition. – The Committee shall be composed of the following:

Secretary of Finance Chairman

Secretary of Justice Member

Director-General, National Economic and Development Authority Member

b. Secretariat. – The Committee shall establish and maintain a Secretariat which shall provide technical and administrative support to the Committee.

The Secretary of Finance is hereby directed to convene the Committee upon the effectivity of this Order.

Section 2. Functions. – The Committee shall have the following functions:

a. Undertake a thorough review of all IPP contracts;

b. In cases where the IPP contracts are found to contain provisions which are grossly disadvantageous, or onerous to the Government, cause the appropriate government agency to file an action under the arbitration clauses provided in said contracts or initiate any appropriate action under Philippine laws;

c. Submit reports to the Office of the President on the results of the review of the IPP contracts and any action taken thereon, if any, within six (6) months from the effectivity of this Order and every six (6) months thereafter until the functions of the Committee are fully discharged; and

d. Perform such other functions as may be necessary and appropriate to achieve its objectives.

Section 3. Rules of Procedure. – The Committee shall adopt its own rules of procedure in the performance of its functions.

Section 4. Abolition and Repeal. – The Inter-Agency Committee created under Administrative Order No. 10 dated May 26, 2001 is hereby abolished and its records shall be transferred to the Committee herein organized. Administrative Order No. 10 dated May 26, 2001 is hereby repealed. All other orders, rules, regulations and issuances, or parts thereof, which are inconsistent with this Administrative Order, are hereby repealed or modified accordingly.

Section 5. Effectivity. – This Order shall take effect immediately upon approval.

City of Manila, July 18, 2001.

(Sgd.) GLORIA MACAPAGAL-ARROYO
President of the Philippines

By the President:

(Sgd.) ALBERTO G. ROMULO
Executive Secretary

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