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SEC.48. Title. This Title of the Provincial Water Utilities Act of 1973 shall be known and referred to as the "Local Water Utilities Administration Law". (As amended by Sec.20, PD 768) Chapter II - Purpose and Formation SEC.49. Charter. There is hereby chartered, created and formed a government corporation to be known as the "Local Water Utilities Administration" which is hereby attached to the Office of the President. The provisions of this Title shall be and constitute the charter of the Administration. (As amended by Sec.21, PD 768) SEC.50. Purposes. The Administration shall primarily be a specialized lending institution for the promotion, development and financing of local water utilities. In the implementation of its functions, the Administration shall, among others: (1) prescribe minimum standards and regulations in order to assure acceptable standards of construction materials and supplies, maintenance, operation, personnel training, accounting and fiscal practices for local water utilities ; (2) furnish technical assistance and personnel training programs for local water utilities; (3) monitor and evaluate local water standards; and (4) effect systems integration, joint investment and operations, district annexation and deannexation wherever economically warranted. (As amended by Sec.22, PD 768) Chapter III - Board of Trustees SEC.51. Composition. The Board of Trustees of the Administration shall be composed of a chairman and four other members, all of whom shall be citizens of the Philippines. One trustees at any time shall have at least ten years experience in banking, finance or business. One trustee at any time shall possess sufficient background in the field of economics; one trustee at any time shall have experience in management or systems operations. Two trustees at any time shall be civil or sanitary engineers with experience related to water supply or wastewater operations. Not more than one trustee may represent a private investor-owned utility. No elected official shall private investor to act as a trustee. At least three of the trustee must be employee of the National Government. The General Manager shall be ex-officio member of the Board. (As amended by Sec.23, PD 768) SEC.52. Appointment and Term of office. The trustees, with the exception of the ex-officio member, shall be appointed by the President of the Philippines. They shall serve a term of five years each: Provided, That of the first four initially appointed, one shall serve a term of five years, another for four years, the third for three years, and the fourth for two years. Trustees may be removed for cause only. The incumbent trustees holding office as such upon the effectivity of this amendment shall continue to hold such office until expiration of their original terms as defined in their appointments. (As amended by the Sec.24, PD 768) SEC.53.
Vacancies. Vacancies in the Board of Trustees for any reason whatsoever shall
be filled by the President of the Philippines in like manner as in the case of
new appointments but the trustees so appointed shall serve only the unexpired
portion of the term of the trustees substituted for. (As amended by Sec.25, PD
768) SEC.55. Compensation. The Trustees shall each receive a per diem as may be fixed by the Board for each meeting actually attended by them: Provided, That the total of such per diem in any one month for each Trustee, shall not exceed the equivalent of the per diems for four meetings: Provided, further, That per diems in excess of three hundred pesos per meeting shall be subject to approval of the Office of the President; and Provided, Finally, That, in addition, each Trustee shall be reimbursed his expenses incurred in connection with the performance of his functions in such amounts as may determined by the Board of Trustees. (As amended by Sec.26, PD 768) Chapter IV - By Laws SEC.56. By-Laws. The Board of Trustees shall adopt a code of by-law for the conduct of the affairs of the Administration which may be amended from time to time by the affirmative vote of four Trustees. Except as otherwise provided herein, the organizational structure and staffing pattern of the Administration, the qualification of the appointive officers and employees, the powers and responsibilities of the officers, the internal procedure of the Administration, and such other matters relative to the organization, management and conduct of the affairs of the Administration shall be as provided in by the bay-laws; Provided, That, the appointment of and disciplinary action against officers and employees of Administration shall be done and effected pursuant to guidelines established by the Board of Trustees. (As amended by Sec.27, PD 768) Chapter V - Officers and Employees SEC.58. The General Manager and Other Employees. The Trustees shall select a general manager who shall not come from the appointed trustees. The general manager shall receive compensation in a amount as may be fixed by the Board, subject to the approval of the President of the Philippines, but in no case less than fifty-four thousand pesos per annum. The general manager shall employ and appoint all additional personnel; Provided, That the appointment to personnel in the supervisory level shall be subject to confirmation by the Board. The incumbent manager holding office as such upon the effectivity of this amendment shall continue to hold such office unless sooner terminated by competent authority. (As amended by Sec.29, PD 768) Chapter VI - Powers SEC.59. General Corporate Power. The Administration shall have all the powers which are expressly granted to it under this Title, or which are necessary, implied from, or incident to the power and purposes herein stated. SEC.60. Borrowing and Security Thereof. The Administration may borrow funds as authorized in Section 72 of this Title, and issue as security thereof debentures of other evidence of indebtedness constituting lien on any and all securities, covenants and obligations of local water utilities held by the Administration as security for loans made to such local water utilities. (As amended by Sec.30, PD 768) SEC.61. Loans. Administration may make loans from its Revolving Loan Funds to qualified local water utilities, upon the following condition and pursuant to the following procedures: (a) Qualification of Borrow. Before any loan may be granted, the local water utility shall (1) hold a valid certificate of conformance or a condition certificate of conformance form the Administration, and (2) meet such other and further loan qualification requirements as the trustees may establish; (b) Feasibility Study. A feasibility study which may be required by the Administration for any proposed project for which loan funds are sought may be undertaken by the water district, the Administration or by a consultant pre-qualified by the Administration; (As amended by Sec.31, PD 768) (c) Security. The Administration may take as security for such loans the authorized bonds or other evidence of debt by the water district and a mortgage on its properties; (As amended by Sec.31, PD 768) (d) Loan Documents and Procedure. The Board of Trustees shall adopt rules, loan documents and procedures to be used in the granting of loans. Such rules shall include provision of security, payment and default. (As amended by Sed.31, PD 768) (e) Default. In the event of default by the local water district in the payment of principle or interest on its outstanding bonds or other obligation to the Administration, the latter may, without the necessity of judicial process, take over and operate the facilities or properties of the district. For this purpose, the Administration may designate its employees or any person or organization to assume both the policy-making authority and the power of management, including but not limited to, the establishment of water rates and service charges, the dismissal and hiring of personnel, the purchase of equipment, supplies or materials and such other actions as may be necessary or operate the water district efficiently. Such policy-making and management prerogatives may be returned to the Board of Directors and the General Manager of the water district, respectively, when all of its overdue accounts have been paid, all its reserve requirements have been satisfied and all causes of default have been met. (Sec.31, PD 768) (f) Funding of Loan. When a loan is made to local water utility, the necessary amount of such loan shall be programmed to assure completion of the project for which loan was granted. (As amended by Sec.10, PD 1479) SEC.62. Regulations. Administration shall have the power and duty to established standard for local water utilities and adopt rules and regulations for the enforcement thereof. The Administration shall vigorously consult and coordinate its actions with all government agencies active in the areas of public work and all other concerned agencies in the promulgation of these standards. Said standards and regulations shall include the following: (a) Water Quality. Minimum drinking water standard including a uniform testing and reporting system. Said standard shall include bacteriological, chemical and physical parameters; (b) Design and Construction. Minimum criteria for the design and construction of new or additional facilities for water supply, treatment, transmission and distribution, and for wastewater collection, treatment and disposal; (c)
Equipment, Materials and Supplies. Standards for the optimum selection and effective
utilization of equipment, materials and supplies by local water and sewer utilities; (e) Personnel. The training personnel who operate or manage local water utilities. For this purpose at least a majority of the personnel of local water district must have satisfactorily completed appropriate training courses, programs or seminars conducted by the Administration, and must be holders of a certificate of completion of conformance is issued to the water district. For certain positions which the Administration may specify, only those persons possessing, or in the case of subsequent appointments, only persons who will undergo training and shall have obtained within six months, a certificate of completion or competence, as the case may be, shall be appointed; (As amended by Sec.31, PD 768) (f) Organization. Organizational and institutional criteria to assure independent operation and funding of local water utilities; (g) Accounting. A uniform accounting system with uniform chart of accounts. Said standards and regulations shall also include stipulated levels of internal reporting to local water utility management. SEC.63. Rate Review. Any publicly-owned local utility holding a Certificate of Conformance from the Administration is hereby declared exempt from the jurisdiction of the Public Service Commission or its successor. Any rates or charges established by such local water utility shall be adequate to provide for: (a) Reimbursement from all new water customer for the cost of installing new services and meters; (b) Revenue from all water deliveries and services performed by the district; (c) Annual operating expense of the district; (d) The maintenance and the repair of the works; (e) A reasonable surplus for replacement, extension and improvement; and (f) Payment of the interest and principal and provide a sinking fund for payment of debts of the district as they become due and establish fund for reasonable resources. The rates or charges established by such local district, after hearing shall have been conducted for the purpose, shall be subject to review by the Administration to establish compliance with the above-stated provisions. Said review of rates or charges shall be executory and enforceable after the lapse of seven calendar days from posting thereof in a public place in the locality of the water district, without prejudice to an appeal being taken there from by a water concessionaire to the National Water Resources Council whose decision thereof shall be appealable to the Office of the President. An appeal to the Council shall be perfected within thirty days after the expiration of the seven-day period of posting. The council shall decide an appeal within thirty days from perfection. (As amended by Sec.11, PD 1479) SEC.64. Technical Assistance. Administration shall provide technical assistance to local water utilities their boards, management, and operating personnel, to aid in meeting the standards and criteria established by the Administration, and to encourage the upgrading of the operations and management of such local water utilities. Said technical assistance should consist of those matters which are practical to finance or develop on a national basis but are beyond the capability of the individual local water utility, as such. SEC.65. Technical Programs. Administration shall establish training programs and seminars for personnel of local water utility. Programs shall include the areas of utility management, operation, maintenance and customer service. Administration shall have the power to issue Certificate of Completion for the satisfactory completion of a specified course of instruction. In the case of operational personnel. Administration may conduct appropriate examinations and issue corresponding Certificate of Competence to assist local water utilities to meet the personnel standards set pursuant to Section 62(e) of this Title. SEC.66. Certificate of Conformance. Administration may require report from all water utilities, conduct field investigation and review all available information to determine whether there has been conformance to its standards and procedures established pursuant to Section 62 of the Title. Upon a finding that said standards are met, the Administration shall issue a Certificate of Conformance to any such water utility. Said Certificate may be revoked after due notice and hearing as to any local water utility which therefore fails to continue conformance with such standards. A Conditional Certificate of Conformance may be issued where procedures and practices have been adopted to assure conformances and reasonable time schedule has been adopted. Failure, to each conformance as contemplated shall be cause for revocation of such conditional certificate, without hearing or other cause. Chapter VII - Financial Provision SEC.67. Capital Stock. The authorized capital of the Local Water Utilities Administration is Two Billion Five Hundred Million Pesos divided into Twelve Million Five Hundred Thousand shares of stock with a par value of Two Hundred Pesos per share which shall be subscribed by the National Government and opened to subscription by private investors or government financial institution. (Sec.34, PD 768; as amended by Sec.12, PD 1479) SEC.68.Payment for National Government Shares. All amounts previously released by the National Government to the Revolving Fund of the Administration shall be credited as payment for subscription to shares of stock at par value. Whatever balance remaining of said subscription shall be paid from a continuing appropriation which is hereby made out of any funds in the National Treasury nor otherwise appropriate, such annual appropriation to be programmed and release in accordance with pertinent budget laws Provided, That this continuing appropriation shall remain in force until the balance of the unpaid subscription of the government to the capital stock of the Administration have been paid in full. (Sec.34, Pd 768; as amended by Sec.13, Pd 1479) SEC.69. Operational Expenses. The Board of Trustees is hereby authorized to appropriate out of any funds of the Administration, such amounts as it may deem necessary for the operational and other expenses of the Administration including purchase of necessary equipment. (Sec.34, PD 768) SEC 70. Charges. To the extent that the Administration performs services for the benefit and at the request of a local water district or utility or umber of water districts, utilities or organizations, it may levy fees or charges for such service rendered. Charges may include an assessment against water districts or utilities to finance those functions of the Administration which are of general benefit to water district or utilities including, but not limited to, general administration and supervision. (Sec.34, PD 768) SEC.71. Receipt and Investment of Funds. Whenever the Administration receives money whether as payment for subscriptions to shares of stock, principal repayments, interest income, payment for service rendered or for any purpose whatsoever, it shall issue its own receipts and provide for their safekeeping and investments under policy guidelines as may be established by the Board of Trustees in accordance with Department of Finance regulations. (Sec.34, PD 768) SEC.72. Domestic Borrowing Authority. The Administration shall have the authority to borrow money from all domestic loan sources whether government or private Provided, That its loans outstanding from domestic sources at any one time all not exceed One Billion Pesos. (As amended by Sec.36, PD 768) SEC.73. Authority to Contact Foreign Loan. The Administration is hereby authorized to contract loans, credits, in any convertible foreign currency or capital goods, and to incur indebtedness from time to time with foreign governments, or any international financial institutions or fund sources, including supplier's credits or deferred payment arrangements, the total outstanding amount of which, excluding interests, shall not exceed five hundred million US$ or the equivalent thereof in the other currencies, on terms and conditions promulgated by the Secretary of Finance and the Monetary Board for the accomplishment of its objectives; and to enter into and execute contracts and other documents specifying such terms and conditions. The President of the Philippines, by himself, or through his duly authorized representative, is hereby authorized to negotiate and contract with foreign governments or any international financial institution or fund source in the name and on behalf to the administration, one or several loans, for the purpose of implementing the Administration's program for the promotion and development of local water utilities through the Administration's financing or lending operations. The President of the Philippines, by himself or through his duly authorized representative, is hereby further authorized to guarantee, absolutely and unconditionally, as primary obligor and not as mere surety, in the name and on behalf of the Republic of the Philippines, the payment of the loans, credits and indebtedness up to the amount herein authorized, over and above the amounts which the President of the Philippines pursuant to loan agreement entered into with foreign government or any international financing institution or fund sources. The loan credits and indebtedness contracted under this section shall be in accord with the provisions of the Foreign Borrowing Act as amended. (As amended Sec.36, PD 768) SEC.74. Depository for Reserve. Any local water utility which is accumulating reserves for capital improvement may make specified time deposit of the same to the Administration in the manner authorized for banks in handling trust funds. Such funds shall not be used for operating purposes by the Administration. (As amended by Sec.37, PD 768) SEC.75. Control and Supervision over all Release of Appropriations for Waterworks and Sewerage Systems. Since the Administration is charged with the development of local water utilities, funds from prior and future appropriations of the National Government for waterworks and sewerage system in cities, municipalities, and provinces that are covered by duly formed water district shall be released directly to the Administration for the account of the water district concerned. The Administration may, however, draw from such account fees and charges for services rendered to the water district concerned as specified in Section 70 of this Title. (Sec.38, PD 768) SEC.76. Government Assistance to Non-Viable Water District. There shall be included in the General Appropriations Act an outlay in the form of National Government aid or subsidy to meet the financial requirements in the development of water supply systems of water districts which are determined by the Administration to be financially nonviable in such amount as the Administration may recommend, but not exceeding the cost of source development and main transmission line. Release of such funds shall be made directly to the Administration. In the development of such water supply systems, the Administration shall exert all efforts to bring the levels of service within the cost repayment capacity of the beneficiaries. (Sec.14, PD 1479) SEC.77. Special Projects. Whenever required by the National Government to provide funding requirements for the development of waterworks and sewerage systems in municipalities, cities or provinces or portions thereof not yet covered by a duly formed water district, an outlay shall be provided I the General Appropriations, separate from its capitalization, for the purpose of meeting the financial requirements of the project; Provided, however, That in the event that fund for the project have already been appropriate by the National Government, such funds shall be released directly to the Administration. Expenses incurred by the Administration for the service rendered may drawn from such account as provided in Section 70 of this Title. SEC.79. Exemption from All Taxes, Duties, Fees, Imposts and Other Charges by the Government. To enable the Administration to pay its indebtedness and obligations, and in furtherance and effective implementation of the policies and objectives of this Decree, the Administration is hereby declared exempt: (a) From the payment of all taxes, fees, imposts, charges, costs and restriction by the Government of the Republic of the Philippines, its provinces, cities, municipalities, and other government agencies and instrumentalities, and filing and service fees and other charges or costs in any or administrative proceedings in which it may be a party. (b) From all income taxes, franchise taxes and realty taxes to be paid to the National Government, its provinces, cities, municipalities and other government agencies and instrumentalities; and (c) From all import duties, compensating taxes, wharfage fees on import of foreign goods and equipment required for its operations and projects. (Sec.38, PD 768; as amended by Sec.15, PD 1479) NEXT TOP | ||