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

SECTION 1. Subject to the conditions imposed by this Act, there is hereby granted to Bayani Pingol, hereinafter referred to as the grantee, a franchise to construct, operate and maintain an ice plant and cold storage in the City of Naga for the purpose of manufacturing and distributing ice and supplying cold storage within the said city and in the municipalities of Calabanga, Pili, Camaligan, Sipocot and Basacao, all in the Province of Camarines Sur and to charge and collect a schedule of prices and rates for the ice and cold storage so furnished.  Schedule of prices and rates shall at all times be subject to regulation by the Public Service Commission.

SEC. 2. The grantee shall manufacture and supply ice up to the limit of the capacity of his plant.

SEC. 3 All the apparatus and appurtenances to be used by the grantee shall be modern, safe and first class in every respect.  The grantee shall change or alter any of the apparatus and appurtenances of his expense, whenever the public interest reasonably requires it.

SEC. 4. The franchise shall continue for a period twenty-five years from the date said plant and cold storage shall be placed in operation and shall commence the manufacture and distribution of ice in the City of Naga and is made subject to the express condition that the same shall be null and void unless construction of said plant and cold storage shall commence within two years from the date of approval of the Act and completed within three years from said date, except when prevented by an act of God, or force majeure, martial law, riot, civil commotion, usurpation by military power or any other cause beyond the grantee's control.

SEC. 5. The grantee shall be liable to pay the same taxes, unless exempted therefrom, on his business, real estate, buildings and personal property, exclusive of this franchise, as other persons or corporations are now or hereafter may be required by law to pay.

SEC. 6. The books, records and accounts of the grantee shall be open to the inspection of the provincial treasurer or his authorized representatives, and it shall be the duty of the grantee to submit to the provincial treasurer, quarterly reports in duplicate, showing the gross receipts for the quarter past, one of which shall be forwarded by the provincial treasurer to the Auditor General, who is shall keep the same on file.

SEC. 7. This franchise is granted subject to the provisions of Commonwealth Act Numbered One hundred forty-six and with the understanding and upon the condition that it shall be subject to amendment, alteration or repeal by the Congress of the Philippines when public interest so requires.

SEC. 8. The grantee, with the approval of the Congress of the Philippines first had, may sell, lease, grant, convey, assign, give in usufruct, or transfer this franchise and all properties, equipment and rights acquired thereunder to any qualified individual, association of persons or corporation competent to operate the business hereby authorized: Provided, however, That the grantee may mortgage the said franchise and all property, equipment and rights acquired and operated thereunder in favor of any government-owned or controlled financing institution, with the prior approval of the Public Service Commission.

SEC. 9. In consideration of the franchise and rights hereby granted, the grantee shall pay a franchise tax equal to five per centum of the gross earnings under this franchise, three per centum shall accrue to the National Government and two per centum to the city where the franchise is in operation.

SEC. 10. This Act shall take effect upon its approval. 

Enacted without the Executive approval, July 22, 1972.