Question & AnswerQ&A (Commonwealth Act No. 125)
The purpose of Commonwealth Act No. 125 is to create a revolving fund of two million pesos for the construction of provincial and municipal waterworks systems in the Philippines.
The expenditure of the revolving fund is supervised by the Secretary of Public Works and Communications.
The cost of waterworks systems constructed shall be reimbursable within a period not exceeding twenty years with interest at the rate of four percent per annum, payable annually.
The National Waterworks Board is created to administer said waterworks and fix the rates to be collected from water consumers.
The Board is composed of the Secretary of Public Works and Communications as chairman, the Secretary of Finance, and the Secretary of the Interior as members.
No, the rates fixed by the National Waterworks Board shall not be subject to revision by the Public Service Commission.
The Director of Public Works is tasked to examine possible sources of water supply, make surveys and investigations to determine feasibility, and recommend projects to the National Waterworks Board.
The municipality or province concerned shall bear the cost of preliminary surveys and investigations.
The construction shall not start until the concerned provincial board or municipal councils adopt a resolution guaranteeing annual reimbursement payments, or if insufficient funds exist, a special assessment on real estate benefited is levied.
The provincial treasurer or municipal treasurer of the place where the waterworks is constructed is in charge of collecting water charges.
The provincial board or municipal councils must appropriate the necessary funds to cover the deficiency.
The district engineer of the province concerned is in charge of operation, subject to regulations by the Director of Public Works and the National Waterworks Board.
The National Waterworks Board certifies this to the President, who then, through an Executive Order, turns over the system to the province or municipality for administration and operation.
Yes, they may totally reimburse at any time after completion and before the twenty-year reimbursement period expires.
The revolving fund, including accrued interest and earnings, shall revert to the general funds in the Treasury of the Philippines.
Funds shall be released only upon certification by the Auditor General and Secretary of Finance to the President that there are sufficient funds derived from current revenues in excess of authorized appropriations.
The President is authorized to issue bonds in the amount of two million pesos to fund the construction of waterworks systems.
The sinking fund is created for the payment of the bonds issued, ensuring that sufficient amounts are set aside annually for bond redemption.
It is charged against the receipts and collections from the waterworks system.