Immediate Acquisition of Coal Conversion Equipment Through the Standard Bidding Procedure

December 9, 1980

LETTER OF INSTRUCTIONS NO. 1094

 

WHEREAS, the approved National Plan on the Development, Production and Utilization of Coal prescribed the timetable for the conversion into coal-firing of suitable industrial plants, particularly cement plants; cd

WHEREAS, the Development Bank of the Philippines has been made responsible for providing funds to finance the program of conversion of cement plans to coal burning; acd

WHEREAS, the Philippine Cement Industry Authority has undertaken a standard bidding procedure for the supply of coal conversion equipment and the construction of these works to facilitate the immediate and economical implementation of the coal conversion of cement plants;

NOW, THEREFORE, in confirmation of the authority granted to the Ministry of Industry and the Development Bank of the Philippines under Letter of Instructions No. 752 in support of the coal development and utilization program, I hereby direct:

1. The Minister of Industry as Chairman of the Philippine Cement Industry Authority to effect immediate acquisition of the coal conversion equipment through the standard bidding procedure undertaken by the Authority for and in behalf of the cement plants; cdt

2. The Development Bank of the Philippines to provide the financing for the coal conversion equipment, including the funds for the downpayment of these coal conversion systems to be debited against the loan accounts of the cement plants with the Bank;

3. The Philippine Cement Industry Authority to take measures to stabilize the distribution of cement in the domestic market and expand the export market for Philippine cement to ensure that the installed capacity of the industry is economically utilized. In this respect, the Authority is directed to take all measures to enforce the strict implementation of the export assistance scheme established to insure equitable sharing of the benefits and burdens arising out of cement exports, including such measures as the curtailment of fuel oil supply or immediate closure of cement plants for refusal to cooperate in the attainment of the objectives of the government as enunciated under Presidential Decree No. 94.

This Letter of Instructions shall take effect immediately.

DONE in the City of Manila, this 9th day of December, in the year of Our Lord, Nineteen Hundred and Eighty. cdt