Philippines President Benigno Aquino III has signed a law that will grant a private company, a 25-year franchise to handle the local government-managed power distribution utility in Olongapo City.

Under Republic Act 10373, Olongapo Electricity Distribution has been allowed to construct, install, establish, and maintain a distribution system for the conveyance of electric power to the end-users in the City of Olongapo and its suburbs.

The bill said that all electric distribution facilities, lines and systems for electric services owned, maintained, operated or managed by the grantee, its successors or assigns, shall be operated and maintained at all times in a superior manner.

It also said that it shall be the duty of the grantee, its successors or assigns, whenever required to do so by the Energy Regulatory Commission or the Department of Energy to modify, improve and change such facilities or systems.

Under the law, the company will have to supply electricity to its captive market in a cost-effective manner, reported Philippines Information Agency.

The franchise might be revoked in the event the grantee fails to operate continuously for two years.