Question & AnswerQ&A (Republic Act No. 806)
Republic Act No. 806 grants Carlos Nable a franchise to install, operate, and maintain a water supply system in the Municipality of Calapan, Oriental Mindoro for distributing water for sale.
The franchise is granted for a period of twenty-five years from the approval of the Act.
The grantee is granted the rights to construct, maintain and operate water mains, pipes, conduits, reservoirs, tanks, and dams; to install equipment above or below ground in public thoroughfares; to supply, sell and furnish water; to purify water sources; and to regulate water use and prevent waste, all subject to applicable regulations.
The grantee must obtain a certificate of public necessity and convenience from the Public Service Commission within three months from the approval of the Act and file it with the Secretary of Public Works and Communications.
Water mains and pipes within the strong-material zone must be placed at least 45 centimeters below the surface and above ground piping must be on the grantee’s right of way except where crossing public places. Construction must be approved by the Public Service Commission.
The grantee shall supply water to applicants within fifteen days of application in order of application, up to the system’s capacity, and must expand capacity as needed under the Public Service Commission’s direction.
The grantee shall pay quarterly to the municipal treasury one percent of gross earnings during the first fifteen years and two percent during the remaining ten years of the franchise.
The grantee must deposit one thousand pesos or negotiable government bonds or approved securities of equivalent value as a guarantee to begin and maintain operation according to the franchise terms.
The deposit made shall be forfeited to the provincial government as damages for breach of the implied contract involved in the franchise acceptance, unless prevented by force majeure or other excusing causes.
The Public Service Commission may declare forfeiture of the franchise and all rights inherent in it after hearing, unless failure is caused by act of God, public enemy, or force majeure.
No, not without the approval of Congress, and any lease/sale must bind the transferee to comply with all existing terms and conditions of the franchise.
The government may take possession and operate the water system until the emergency passes.
All lands, rights of use, and properties acquired shall revert to the National, provincial, or municipal governments, and all franchise property becomes the property of the National Government.
The grantee is required to pay taxes on real estate, buildings, plant, machinery, and personal property as required by law from other persons.
The grantee must maintain a first-class water system, furnish first-class service, place and maintain equipment so as not to interfere with public use, and comply with reasonable regulations of the Public Service Commission.