SENATOR Edgardo J. Angara has expressed strong support to the bid of the Local Water Utilities Administration (LWUA) to have its 33-year old charter be amended by Congress foremost of which is the proposed increase in its authorized capital stock and borrowing authority from P 2.5 billion to P50 billion.

Angara made known his position on Senate Bill No. 2165, authored by Sen. Juan Ponce Enrile and containing the proposed 11-point amendment to Presidential Decree No. 198, in a letter to Sen. Ramon "Bong" Revilla, Jr., chairman of the Senate Committee on Public Works and Highways which is slated to conduct a public hearing on the matter this month.

Earlier, Senate Minority Leader Aquilino Pimentel, Jr. also expressed his support for the proposed amendment to P.D. 198, also known as the Provincial Water Utilities Act, saying the measure is long overdue and assured LWUA Administrator Lorenzo H. Jamora of his help once it is brought for deliberations on the floor.

Angara further recommended that an additional provision allowing private investors or other government institutions to subscribe into the authorized capital stock of the water agency. The authorized capital stock of LWUA was fully subscribed as early as 1992.

"LWUA has always lamented that it depended heavily on equity releases or contributions from the government which led to budgetary constraints in the implementation of its projects. Allowing investors, especially funds of the Overseas Filipino Workers, would do well to address this persistent predicament," Angara pointed out.

Administrator Jamora stressed that the need to increase the water agency's authorized capital stock and borrowing authority has become urgent in order for it to meet the millennium development goal (MDG) of the government.

The LWUA chief said that the proposed investment program for the provincial water supply sector for the period 2005-2015 will amount to P97.6 billion, of which an estimated 40% or P39.0 billion represents the required peso counterpart to be sourced from the inadequate capitalization of the agency.

Jamora noted that in the absence of general appropriations act (GAA) funds, LWUA also intends to source the peso requirements (or counterpart funds) from other local funding sources to enable the agency to avail of foreign grants and loan packages.

Jamora appreciated the endorsement of Sen. Angara and lauded the solon's timely support to the government's provincial water supply program.

Angara also proposed individual amendments/comments with regard to the following: deadline of nominations of the board of directors of the water districts, remedy of appeal, appointment of the members of the Board of Trustees of LWUA, exemption from the Salary Standardization Law (SSL) and authorized capital stock.

Angara also supported LWUA's proposal that it should be allowed to make or issue production assessment on water extractions by private corporations and individuals and/or increase water rates and the same shall only subject to appeal before the National Water Resources Board (NWRB), which decision shall be immediately executory.

"The decisions of LWUA shall be appealed before the NWRB, and in turn, NWRB's decision shall be appealed before the Regional Trial Court where the petitioners reside," Angara also recommended.
c August 11 , 2006