Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1479)
A water district under Presidential Decree No. 1479 is considered a quasi-public corporation performing public service and supplying public wants, exercising powers granted to private corporations subject to restrictions under the Act.
If a water district avails of financial assistance from the Administration, the Administration may appoint any of its personnel to sit on the board of directors with full rights and privileges as a regular member for the period the indebtedness remains unpaid, resulting in a six-member board.
Water districts are granted the power of eminent domain for carrying out their objectives, subject to review by the Administration.
Water districts have the right to take over the management, administration, operation, and maintenance of all watersheds within their territorial boundaries.
The income must first pay contractual and statutory obligations and essential current operating expenses; second, allocate at least 50% of the balance exclusively as reserve for debt service and maintenance for calamities or unforeseen events; third, allocate the remaining balance for expansion and improvement of physical facilities.
No franchise shall be granted for domestic, industrial, or commercial water service within the district unless the board of directors of the district consents by resolution, which is subject to review by the Administration.
The loan amounts must be programmed to assure the completion of the project for which the loan was granted.
Rates set by a local district are subject to review by the Administration after a hearing. The review is executory after 7 days of public posting. An appeal can be taken to the National Water Resources Council within 30 days after posting period, and from the Council to the Office of the President. The Council must decide within 30 days.
Two billion five hundred million pesos, divided into twelve million five hundred thousand shares with a par value of two hundred pesos per share, subscribed by the National Government and opened to private investors or government financial institutions.
The Act includes national government aid or subsidy for the development of water supply systems of financially non-viable water districts, not exceeding the cost of source development and main transmission line, with funds released directly to the Administration.