Release of Additional Funds to PNOC for Purchase of Tankers ( Letter of Instructions No. 254 )
February 20, 1975
February 20, 1975
LETTER OF INSTRUCTIONS NO. 254
| TO | : | The Commissioner of the Budget |
| The Treasurer of the Philippines | ||
| The President of the Philippine National Oil Company |
The joint study of the Department of Finance and the Philippine National Oil Company (PNOC) shows that the additional Twenty-Five Million Pesos (P25,000,000) released to PNOC pursuant to Letter of Instruction No. 239 dated 11th January 1975 is inadequate for the purpose for which intended. In view hereof, you are hereby further directed to incorporate in the Budget and set aside out of the Special Fund created under Section 7(j) of Republic Act No. 6173, as amended, so much of the payments to the Special Fund starting January 1st, 1975, equivalent to one centavo per liter of refined petroleum product and release the same to PNOC and/or any of its subsidiaries as designated by PNOC.
The foregoing amounts and/or the earnings therefrom shall be utilized for the purposes specified in Letter of Instruction No. 239 and shall be subject to the reporting and accounting requirements therein.
DONE in the City of Manila, this 20th day of February, in the year of Our Lord, Nineteen Hundred and Seventy-Five.
ESTIMATED SUPPLEMENTED FUNDING
|
|
SUBSIDY
|
ADDITIONAL
|
|
|
YEAR
|
INCOME
|
EQUITY
|
TOTAL
|
|
1975
|
57.7
|
-
|
57.7
|
|
1976
|
58.1
|
27.5
|
85.6
|
|
1977
|
50.3
|
43.8
|
94.1
|
|
1978
|
42.4
|
43.8
|
86.2
|
|
1979
|
34.6
|
43.8
|
78.4
|
|
1980
|
26.6
|
43.8
|
70.4
|
|
1981
|
18.6
|
43.6
|
62.2
|
|
TOTAL
|
288.3
|
246.3
|
534.6
|
Note: Above assumes PNOC will secure a 7-year loan at a total interest cost of 12.5% to finance acquisition of tankers.