National Power Corporation (2)

June 30, 2009 FIRB RESOLUTION NO. 009-09 SUBJECT MATTER : National Power Corporation (2) WHEREAS, the National Power Corporation (NPC) is mandated to undertake the development of hydroelectric generation of power and the production of electricity from nuclear, geothermal and other sources, as well as the transmission of electric power on a nationwide basis under its original charter and to perform the missionary electrification function under the Electric Power Industry Reform Act of 2001; WHEREAS, the conduct of these functions has resulted in the accumulation of value-added tax liabilities for the NPC for the years 2006 and 2007; WHEREAS, the NPC does not have the financial resources to settle these tax obligations with the Bureau of Internal Revenue; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to grant tax subsidy to the NPC to cover its VAT liabilities for 2006 and 2007 in the amount of FIVE BILLION THREE HUNDRED FORTY TWO MILLION THREE HUNDRED FORTY FIVE THOUSAND FOUR HUNDRED TWENTY ONE AND 56/100 PESOS (P5,342,345,421.56) only per Annex A: Provided, that such availment shall be in accordance with the terms and conditions of Section 13 of the 2009 General Appropriations Act, subject to the availability of funds therefor, pursuant to the terms and conditions of the Rules and Regulations to Implement the Subsidy Provision under Executive Order No. 93. (SGD.) GIL P. MONTALBO Director Department of Budget and Management (SGD.) ELMER C. HERNANDEZ Undersecretary Department of Trade and Industry (SGD.) MARGARITA R. SONGCO Deputy Director-General National Economic and Development Authority (SGD.) JAMES H. ROLDAN Assistant Commissioner Bureau of Internal Revenue (SGD.) REYNALDO V. UMALI Deputy Commissioner Bureau of Customs (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat National Tax Research Center (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer FIRB ANNEX A NATIONAL POWER CORPORATION's VAT LIABILITY 2006 and 2007 (In Pesos) 2006 VAT Payable 7,088,963,932.45 Less: Total Tax Credit 1,903,608,951.86 VAT Payment through Tax Subsidy (FIRB Resolution No. 3,573,389,996.71 (5,476,998,948.57) 3-09) 2006 Deficiency VAT 1,611,964,983.88 2007 VAT Payable 3,730,380,437.68 TOTAL VAT LIABILITY 5,342,345,421.56 ============