Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Subject to the provisions of the Constitution and to the terms and conditions established in Act Numbered Thirty-six hundred and thirty-six, as amended, and insofar as the latter law is applicable to, and not inconsistent with this Act, there is hereby granted to the Negros Electric Power Corporation, hereinafter known as the grantee, for a period of twenty-five years from the approval of this Act, the right, privilege and authority to develop, construct, maintain and operate a hydroelectric power plant at a suitable place along the Bago River, for the purpose of generating and distributing electric light, heat, and power for sale within the Province of Negros Occidental. The grantee shall complete the building of the hydroelectric power plant herein authorized within five years from the approval of this Act and charge and collect a schedule of prices and rates for the use of electric current, which schedule of prices and rates shall at all times be subject to regulation by the Public Service Commission.

SEC. 2. Said grantee shall be exempt from the payment of all internal revenue taxes directly payable by it.

SEC. 3. It is expressly provided that, in the event the Government should desire to maintain and operate for itself the hydroelectric power plant herein authorized, the grantee shall surrender its franchise and will turn over to the Government all installations and serviceable equipment therein, at cost, less reasonable depreciation.

SEC. 4. This Act shall take effect upon its approval.

Approved, August 23, 1956.