QuestionsQuestions (PRESIDENTIAL DECREE NO. 198)
To create, operate, maintain, and expand reliable and economically viable and sound water supply and wastewater disposal systems for population centers of the Philippines, through independent, locally controlled public water districts, with national-level support for standards, technical advisory services, and financing.
It is known as the “Provincial Water Utilities Act of 1973.” It also includes within the decree the “Local Water District Law” (Title II) and the charter for the “Local Water Utilities Administration Law” (Title III).
The Metropolitan Waterworks and Sewerage System (MWSS) and any system operated by the Bureau of Public Works as successor to the Wells and Springs Department of the National Waterworks and Sewerage Authority.
To acquire, install, improve, maintain, and operate water supply and distribution systems for domestic, industrial, municipal, and agricultural uses; to provide wastewater collection, treatment, and disposal facilities; and to conduct other incidental functions for water resource development, utilization, and disposal within the district.
The district’s name (ending with “Water District”); a boundary description; intent to transfer existing waterworks/sewerage facilities to the district (subject to the contract authority under Section 31(b)); the purpose of formation (aligned with Section 5); the names of initial directors and term expiration dates; acknowledgment that dissolution can only be on grounds/conditions in Section 44; and acknowledgment of the powers/rights/obligations under Section 36.
If more than 75% of total active water service connections are within a city or municipality, the mayor appoints; otherwise, the governor appoints (for provincial districts). If multiple provinces are included and governors appoint, the power to appoint rotates among the governors involved based on the initial distribution of service connections.
Directors must be Filipino citizens, of voting age, and residents within the district. Five represent specified sectors: civic-oriented service clubs, professional associations, business/commercial/financial organizations, educational or religious institutions, and women’s organizations. No director may be an elected government official.
On or before October 1 of each even-numbered year, the district secretary contacts organizations represented by expiring directors and solicits nominations. Organizations submit one nomination on or before November 1. The secretary transmits nominees to the appointing authority by November 15; the appointing authority appoints by December 15. If not appointed by then, seated directors vote from the list.
Of the five initial directors: two serve up to 2 years, two up to 4 years, and one up to 6 years. Thereafter, directors have regular 6-year terms starting January 1 of odd-numbered years, with at least one and not more than two directors’ terms expiring on December 31 of each even-numbered year.
The Board exercises district powers through itself, but its function is policy-making only; it must not engage in detailed management. Administrative/ministerial powers are to be delegated and re-delegated by the board to officers or agents.
By-laws are adopted at the first meeting and may be amended later. Amendments require 30 days public notice and a public hearing.
No. Since the district and its employees are engaged in a proprietary function, they are exempt from the Civil Service Law. Collective bargaining is available only to personnel below supervisory levels, with a salary-related limitation relative to average net monthly revenue.
Any district holding a valid Certificate of Conformance or Conditional Certificate of Conformance from the Administration is exempt from regulation by the Public Service Commission or its successors.
The district may require buildings to connect to its sewer system within a reasonable time if within 35 meters of an existing main. After due notice and refusal, it may declare continued use/maintenance of cesspools/septic tanks as a public nuisance and—after at least 10 days written notice—deprive the property owner of any and all services provided by the district, co-extensive with the refusal period.
The Board may exclude territory by resolution after notice to landowners within the proposed area and after finding that the lands do not and will not benefit by reason of their inclusion in the district.
A district may be dissolved by Board resolution filed as in the formation process only after: (1) another public entity acquired district assets and assumed obligations/liabilities; (2) all bondholders were notified and consented; and (3) a court of competent jurisdiction determined the transfer and dissolution are in the best interest of the public.
To establish minimum standards and regulations; furnish technical assistance and training; monitor and evaluate standards; effect system integration/joint investments and operations, and annexation/deannexation when economically warranted; and provide specialized lending expertise.