is a Water District (WD)?
water district is a local corporate entity that operates and maintains
a water supply system in one or more provincial cities or municipalities.
It is established on a local option basis and, like LWUA, is classified
as a government-owned and controlled corporation or GOCC. A WD is
run by a five-man Board of Directors through a General Manager.
types of loans are open to Water Districts?
offers four loan windows to water districts (Check out LWUA's new lending rates).
Window 1 is open to Level III (individual household connection)
and Level II (communal faucet) projects intended for the comprehensive
development, repair or rehabilitation of new or existing water supply
systems with interest rates ranging from 8.5-15 % p.a. and a 25-year
repayment scheme that includes a 4-year grace period. Available
loan is from 40-100 % of project cost.
Window 2 is open to projects intended to generate new service connections
or for watershed management, and to special loans intended for emergency
purposes. Available loan is from 50-100 % of project cost and interest
rates are based on prevailing applicable rates.
Window 3 is open to projects intended to enhance water supply facilities
or commercial operations. Maximum loan available is set to 100%
of project cost while the repayment period is either the equivalent
to the life of asset acquired or repayment period contracted with
the fund source.
Window 4, also called the Project Development and Efficiency Improvement
Fund (PDEIF), is intended for project development and for efficiency
improvement activities such as non-revenue water reduction. The
former is available to all water districts and is offered at 6.56
% annual interest, the latter only to semi-creditworthy
and pre-creditworthy water districts at interest rates
of 8.2-8.7 % p.a.
Loan Window is the latest lending facility of LWUA. It is intended
for water district expansion projects, well drilling and development
of water sources. Maximum loan amount is P10 million and carries
a 7.5% p.a. interest rate for a 10-year loan and 9% p.a. for a 15
to 20-year loan.
How is a Water District formed?
duly-organized water district is formed through the following process:
One: LWUA conducts preliminary talks and consultations with interested
local government entities.
Two: The local government conducts public hearings to arrive at a consensus
on whether to form a water district or not. (LWUA Board Resolution
No. 147, Series of 2009, amended the Guidelines for the Formation
of Water Districts in Communities Without Existing Water System,
and states that "LWUA shall no longer require a public hearing
on water district formation as a requisite for the filing of the
Three: The local legislative body (the Sangguniang Bayan/Lungsod or Sangguniang
Panlalawigan, as the case may be) secures nominations for candidates
for the water district board of directors from business, civic,
professional, education and women sectors of the community concerned.
Four: The Sanggunian secretary collates all nominations and forwards the
same to the appointing authority.
Five: The Mayor or Governor appoints the directors.
Six: The local legislative body deliberates and enacts a resolution to
form a water district stating therein the name and terms of office
of the duly appointed board of directors.
Seven: The Mayor or Governor approves resolution, submits the same to LWUA.
Eight: LWUA reviews the resolution to determine compliance with Presidential
Decree No. 198 (Provincial Water Utilities Act of 1973) and LWUA
Nine: If the resolution complies with requirements, LWUA issues a Conditional
Certificate of Conformance (CCC), a water district is born and becomes
eligible to avail of LWUAs comprehensive assistance program.