This preview shows page 1. Sign up to view the full content.
Unformatted text preview: In the Grant of rights, privileges and concessions covering the national economy and patrimony, State shall give preference to qualified Filipinos; and 5. Franchise, certificate or any other form of authorization for the operation of a public utility; only to Filipino citizens or entities with 60% owned by Filipinos; Note: Such franchise, etc., shall neither be exclusive, nor for a period longer than 50 years and subject to amendment, alteration or repeal by Congress; All executive and managing officers must be Filipino citizens. c. EXPLORATION, DEVELOPMENT AND UTILIZATION OF NATURAL RESOURCES Q: What is the State policy regarding exploration, development and utilization of Natural Resources? A: The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State. The State may directly undertake such activities, or it may enter into co‐production, joint venture, or production‐
sharing agreements with Filipino citizens, or corporations or associations at least 60 per centum of whose capital is owned by such citizens. (Sec. 2, Art XII, 1987 Constitution) Q: Section 2 speaks of “co‐production, joint venture, or production sharing agreements” as modes of exploration, development, and utilization of inalienable lands. Does this effectively exclude the lease system? A: Yes, with respect to mineral and forest lands (Agricultural lands may be subject of lease). (Bernas, The 1987 Philippines Constitution: A Reviewer ‐ Primer, 2006) Q: Who are qualified to take part in the exploration, development and utilization of natural resources? A: Filipino citizens and corporations or associations at least sixty percent (60%) of whose capital is owned by Filipino citizens. Note: However, that as to marine wealth, only Filipino citizens are qualified. This is also true of natural resources in rivers, bays, lakes and lagoons, but with allowance for cooperatives. (Bernas, The 1987 Philippines Constitution: A Reviewer ‐ Primer, 2006) Q: If natural resources, exc...
View Full Document