LETTER OF INSTRUCTION NO. 744

Office of the President of the Philippines
Malacañang

Letter of Instruction No. 744

Relative to Reliable Water Supply
at Reasonable Rates in Countryside

TO: The Minister of Public Works, Transportation and Communications
The Chairman and Members, National Water Resources Council
The General Manager, Local Water Utilities Administration
The Chairman and General Managers of Water Districts
All Others Concerned

WHEREAS, the provision of adequate water supply at reasonable rate is a primary objective of the New Society;

WHEREAS, the implementation of a national program for improve water supply is the responsibility of local organizations particularly Water Districts and local government units, assisted by the National Water Resources Council and the Local Water Utilities Administration;

WHEREAS, there is need to improve planning, monitoring and implementing activities at all levels, and to reduce water rates to minimum levels;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby order and instruct:

1. The Local Water Utilities Administration and Water Districts shall immediately review the facilities design, implementing plan and rates and fees charged, with the objective of:

Reducing water rate to minimum levels;

Eliminating unnecessary fees and regulatory measure;

Implementing expansion plans in phases so as to keep in step with growth in demand without resulting in excess capacity;

Reducing cost of construction to a minimum

2. The National Water Resources Council shall eliminate all unnecessary regulatory measures and fees particularly on privately owned and dug wells.

3. The Local Water Utilities Administration and each Water Districts shall prepare a public education program which shall concentrate on the need and methods for water conservation, water rates, water facilities requirements and need for financing, and other related aspects of Water District operations. They, shall, in addition, prepare a comprehensive program and system of public consultation, both formally in hearings and informally through an education program, when considering increases in water rates, particularly at the time when Water Districts initiate operation.

4. The Local Water Utilities Administration shall review the composition of the Board of each Water District to make sure that consumers are properly and fully represented. It shall initiate the necessary changes.

5. The Local Water Utilities Administration shall assess the terms of loans extended to Water Districts, including maturity, amortization schedule, and interest rates, for the purpose of enabling Water District to meet their obligations without charging excessive water rates to consumers.

6. The Committee on National Aid to Local Government Units shall study and recommended to the President a program for communal water pumps to serve areas not covered by Water District of which do not otherwise have an adequate water supply. The program shall provide for a sharing of construction cost among national and local government units, whereby the national government shall provide counterpart-funding assistance charged to the funds provided as Aid to Local Government Units under PD No. 144.

Done in the City of Manila, this 28th day of September, nineteen hundred and seventy-eight.

(SGD) FERDINAND E. MARCOS
President of the Philippines

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