Quezon City--- Boosted by advanced payments of long-term receivables by the giant Metro Cebu and Metro Iloilo water districts, the Local Water Utilities Administration (LWUA) posted a record-high P2.8 billion collection from borrower water districts as payment for loans used in the improvement and expansion of their water supply systems.

This was reported by LWUA Administrator Orlando C. Hondrade who said that in view of higher net income for 2006, LWUA released P5 million in dividends to the national government as its share in the agency's net earnings for the year.

Hondrade said that even without counting the total of P1.333 billion in advanced payments by 20 water districts including the P1.246 billion remitted by the Metro Cebu Water District and the P65.69 million by the Metro Iloilo Water District, both of which were proceeds of the two water districts' approved loan refinancing by the Development Bank of the Philippines (DBP), LWUA still collected P1.456 billion out of its targeted P 1.505 billion regular collections for the year for a high 97 percent collection ratio.

Other water districts that paid off their loan principal of portion thereof included those of Alaminos and Villasis in Pangasinan; Tuguegarao City; Hagonoy and San Miguel in Bulacan; Munoz City, Nueva Ecija; Naujan, Tanauan and Lian, all in Batangas; Gen. Emilio Aguinaldo and Trece Martirez in Cavite; Nabua, Camarines Sur; Catbalogan, Samar; San Francisco and Bunawan, both in Agusan del Sur; President Roxas, Cotabato City and Kabacan, all in Cotabato.

Meanwhile, LWUA granted an additional P483.31 million in new loans to finance the water supply system improvement and expansion of twenty water districts during the year. Biggest loan was approved for Cagayan de Oro City Water District amounting to P391.1 million which was used to finance its bulk water supply project in partnership with a private water consortium, Hondrade said.

Overall, LWUA has already granted a total of P22.691 billion in loan assistance to various water districts throughout the country since it started its specialized development lending operations in 1973, with P19.11 billion already availed of and used in various water supply projects.

Hondrade said that in support of the present policy of the national government to raise additional revenues, LWUA paid earlier this month the Bureau of Treasury the amount of P5 million in dividends as its share in the agency's net earnings for 2006. This he said was done notwithstanding the existing provision of the law that exempt government-owned and controlled corporations (GOCCs) with net income but with negative retained earnings from payment of dividends, Hondrade said.

LWUA acting deputy administrator for finance Wilfredo Feleo said for 2006, LWUA posted a net profit after tax of P449.3 million but with a negative retained earnings of P794.5 million. He explained that these negative retained earnings were on account of the "paper losses" the agency had to incur due to the revaluation of its foreign loans and the inclusion of the same in the agency's financial statement in accordance with the new accounting procedures prescribed by the Commission on Audit (COA) starting in 2004 yet.
c March 26 , 2007