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

SECTION 1. Subject to the terms and conditions established in Act Numbered Thirty-six hundred and thirty-six, as amended by Commonwealth Act Numbered One hundred and thirty-two and to the provisions of the Constitution, there is granted to Restituto Palma Gil, for a period of twenty-five years from the approval of this Act, the right, privilege and authority to construct, operate and maintain an electric light, heat and/or power for sale within the Municipality of Caraga, Province of Davao Oriental.

SEC. 2. In the event that the grantee shall purchase and secure from the National Power Corporation electric heat and power, the latter is hereby authorized to negotiate and transact for the benefit and in behalf of the public consumers with reference to rates.

SEC. 3. 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. 4. It is expressly provided that in the event the Government should desire to operate and maintain for itself the system and enterprise herein authorized, the grantee shall surrender his franchise and turn over to the Government all serviceable equipment therein, at cost, less reasonable depreciation.

SEC. 5. In consideration of this franchise the grantee shall pay a tax equivalent to five per cent of his gross income.

SEC. 6. This Act shall take effect upon its approval.

Enacted without Executive approval, August 4, 1969.