SENATOR Ramon "Bong" Revilla, Jr. said yesterday the request of the Local Water Utilities Administration (LWUA) for a sharp increase in its authorized capital stock, from P 2.5 billion to P 50 billion and its foreign borrowing authority from US$ 500 million to US$ 2 billion, will be heard today (Wednesday) by the Committee on Public Works and Highways.

Revilla, chairman of the Senate Committee on Public Works and Highways, said the requested increase in capitalization and foreign currency borrowing authority for LWUA is deemed urgent in view of the need to provide safe and potable water in all towns and cities outside Metro Manila and in the expansion and modernization of various water districts in key urban and trade centers in the countryside.

The youthful senator disclosed that the proposed increases in capitalization and foreign borrowing authority are contained in Senate Bill Nos. 2165, 443 and 2468 authored, respectively, by Senators Juan Ponce Enrile, Sergio Osmena III and Ramon Magsaysay, Jr. The three bills seek to amend Presidential Decree No. 198, the 33-year old common charter of LWUA and the water districts, Revilla added.

Revilla also stressed that the requested increase in capital and foreign borrowing authority is also pursuant to a World Bank study that projects a total investment requirement of some P150 billion if the country intends to have world standard water supply systems in all towns and cities by the year 2014.

For his part, outgoing LWUA Administrator Lorenzo H. Jamora said Congress has to grant LWUA the requested authority now so that implementation of water supply development projects can be accelerated starting 2007. "It is important that Congress pass the proposed amendments so the program of President Arroyo on water for every barangay by 2010 can be given more attention and focus," he added. Jamora was recently appointed by the President as new administrator of the Metropolitan Waterworks and Sewerage System (MWSS).

Jamora revealed that the P2.5 billion authorized capitalization was fully subscribed or exhausted as early as 1991 and starting 1992 LWUA only relied on limited congressional subsidy and internally generated funds to sustain its operations and lending activities. He pointed out that the congressional subsidy was strictly used as counterpart funds for foreign loans availed by LWUA for various water districts.

Revilla said concerned sectors and government agencies were invited to today's 1:00 p.m. public hearing scheduled at the Senator Lorenzo Tanada room of the Senate.
c November 15, 2006