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Quezon City---
The bid of the Local Water Utilities Administration for an overdue
increase in its authorized capital stock and domestic as well
as foreign borrowing capacities has gained support from the Senate
with five Senators, including one from the opposition, having
filed proposed enabling legislations for its realization to help
LWUA sustain the government's potable water supply projects in
the countryside.
Recently,
Senators Juan Miguel Zubirri, Juan Ponce Enrile and Lito Lapid
filed Senate Bills No. 1623, 1804 and 1863, respectively all of
which sought to further amend the LWUA Charter, Presidential Decree
No. 198 issued in 1973, to allow the increase in LWUA's authorized
capitalization from P2.5 Billion to P25 Billion and the agency's
domestic and foreign borrowing capacities from P1 Billion to P10
Billion and from US$500 Million to US$700 Million, respectively.
Earlier,
opposition Senator Jinggoy Ejercito Estrada and administration
Senator Ramon "Bong" Revilla filed Senate Bill Nos.
589 and 737, respectively, that proposes amendments to PD 198
to increase the authorized capital stock of LWUA and allow government
financial institutions to invest in LWUA. The Estrada and Revilla
bills both sought to increase LWUA's capitalization to P50 Billion
which shall be subscribed by the National Government and opened
to subscription by government financial institutions and private
investors through public offering of shares. Both bills propose
to increase LWUA's foreign borrowing ceiling to US$ 1 Billion
while maintaining the current domestic borrowing cap at P1 Billion.
However,
the Estrada bill also sought to provide for the privatization
of water districts through their conversion either to stock cooperatives
under the Cooperative Code or stock corporations under the Corporation
Code with a five-year period from the passage of the bill into
law.
Public Works
and Highways Secretary Hermogenes Ebdane has already endorsed
to the Office of the President for certification as priority administration
bill, the Senate measure filed by Sen. Zubirri supporting the
contention that LWUA needs urgent funding upgrade for the agency
to perform its mandate and help in realizing the "Tubig Para
sa Barangay" program of the Arroyo administration.
c
November
22 , 2007
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