Memorandum Order No. 348 (1973)

MALACAÑAN PALACE

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ MEMORANDUM ORDER NO. 348, February 23, 1973 ]

CONSTITUTING A PANEL TO FORMULATE THE TERMS AND CONDITIONS UNDER WHICH THE MERALCO MAY QUALIFY FOR A LOAN GUARANTEE WITH THE NATIONAL GOVERNMENT.

There is hereby constituted a Panel which shall, in consultation with the management of the Manila Electric Company, formulate the terms and conditions under which the MERALCO may qualify for a loan guarantee with the National Government. The Panel shall he composed of the following:

Mr. Ramon Ravanzo National Power Corporation | Chairman Mr. Arthur Alvendia Development Management Staff | Member Mr. Gabriel Y. Itchon Central Bank of the Philippines | Member Mr. Roberto de Ocampo National Electrification Adm. | Member Mr. Victor Macalincag Department of Finance | Member Atty. Roque Sorioso National Economic and Development Authority | Member Dr. Jose Almonte National Computer Center | Member

The terms and conditions to be formulated by the Panel shall reflect the following basic considerations:

1. Compliance with the provisions of R.A. 4860, as amended, on the requisites for a national government guaranty on foreign loans;

2. The rationalization/reform program formulated by the Inter-Agency Audit Team (created under Memorandum Order No. 318) designed to re-orient the operations of Meralco towards efficient public service at a minimum cost.

3. The necessary financial and administrative safeguards to protect the Government’s capital exposure in Meralco.

4. The necessary guidelines/specifications of the financial plan to be undertaken by Meralco to restructure its obligations and normalize its cash flows.

The Panel is likewise charged with the duty to determine the manner of implementation of such terms and conditions as may be promulgated and to implement the same. It may also call upon the Inter-Agency Audit Team and other pertinent government agencies for technical and other assistance it may need in the accomplishment of its task.

This Memorandum Order takes effect immediately.

By authority of the President:

(Sgd.) ALEJANDRO MELCHOR

Executive Secretary

Manila, February 23, 1973