QuestionsQuestions (Republic Act No. 1383)
RA 1383 aims to consolidate and centralize all waterworks, sewerage, and drainage systems in the Philippines under one control, direction, and general supervision by creating NAWASA.
The domicile and place of business of the Authority is in the City of Manila.
Its jurisdiction includes all territory embraced by the Metropolitan Water District and all areas served by existing government-owned waterworks and sewerage and drainage systems within the boundaries of cities, municipalities, and municipal districts, including those served by the Waterworks and Wells and Drills Sections of the Bureau of Public Works.
The Board of Directors may extend NAWASA’s territory by admitting or including areas served by the Authority’s works located in other cities, municipalities, or municipal districts, in the interest of the public service.
NAWASA has jurisdiction over the construction, maintenance, operation, and control of non-self-supporting and/or non-revenue producing water systems and sanitary works, whether undertaken at the Authority’s expense or through National Government subsidy as provided in Section 10.
Examples include: (1) to construct, maintain, and operate waterworks and supply water and fix water rates; (2) to construct, maintain, and operate sanitary sewer systems and collect equitable charges; (3) to construct storm drains and administer storm drains, artesian wells, and springs; (4) to acquire/hold/lease/mortgage/dispose of real and personal property and rights/franchises; (5) to exercise eminent domain; (6) to issue regulations for sanitary protection and penalize violations; and (7) to contract indebtedness/issue bonds subject to conditions.
NAWASA may cross or intersect streams, watercourses, canals, ditches, flumes, streets, avenues, highways, or railways if constructed securely and with restoration of usefulness. Entities whose right of way is affected must not obstruct and must grant authority upon payment of just compensation; NAWASA also has the right to locate and maintain works over government lands.
The Board has five members: a chairman, three other members, and the general manager as ex officio member. Two members must have knowledge of waterworks/public works/sanitary engineering; one must have knowledge of public health; and one must have knowledge of business management and finance.
The chairman and the three other Board members are appointed by the President with the consent of the Commission on Appointments for a term of six years.
The Board must render annual reports to the President and Congress of the Philippines.
Not less than three members constitute a quorum, and two affirmative votes are necessary for the adoption of any resolution or motion, unless otherwise provided in the Act.
The general manager, assistant general manager, chief engineer, and treasurer are appointed by the President with the consent of the Commission on Appointments. The Auditor is appointed by the Auditor General with the approval of the President; the Auditor acts as ex officio Auditor for the Authority.
Bonded indebtedness of all classes cannot exceed P150,000,000 at any time. Bond issuance requires a Board resolution passed by at least three members and approved by the Secretary of Finance. Bonds must not be sold below par, are redeemable after 10 years at the Board’s pleasure, payable after 40 years, bear interest as determined by the Secretary of Finance, and are in registered form and transferable at the National Treasurer’s office.
The bonds are declared exempt from taxation by the Government of the Republic of the Philippines or any of its authorities, branches, divisions, or political subdivisions.
A sinking fund is created to ensure sufficient amounts to retire the bonds at maturity. The sinking fund is under the custody of the Central Bank of the Philippines and is invested as approved by the Monetary Board and the Secretary of Finance (per applicable law). The Government guarantees payment of principal and interest; if NAWASA fails, the Government pays and can require refund, with authorization to retain necessary amounts from revenues of included local government units if refund is not made within 30 days.
MWD is dissolved and its records, assets, and liabilities are transferred to NAWASA. Existing government-owned waterworks and sewerage systems, including springs and water sources, as well as waterworks and sewerage bonds, sinking funds, and indebtedness of MWD, are transferred to NAWASA.
No. While NAWASA charges and collects uniform rates, RA 1383 states that the Public Service Commission shall exercise no control, supervision, or jurisdiction whatsoever over NAWASA in fixing of rates or over its properties.