Title
Rationalization of LWUA Functions and Structure
Law
Executive Order No. 421
Decision Date
Apr 13, 2005
Executive Order No. 421 mandates the restructuring of the Local Water Utilities Administration to enhance efficiency in water supply and sewerage services while providing options and benefits for affected employees.
A

Q&A (EXECUTIVE ORDER NO. 421)

The main policy objective is to adopt institutional reforms and effect functional, operational, and organizational adjustments in LWUA to improve the quality and efficiency of public service delivery and transform it into an efficient and results-oriented structure.

LWUA shall provide institutional development services, strengthen lending practices and policies based on sound development banking principles to graduate water districts and service providers, extend technical assistance, and address the need for an increased number of water districts/service providers.

It includes the Board of Trustees (a chairman and four members, with DOF representation and LWUA Administrator as ex-officio vice-chairman), the Administrator appointed by the President, Deputy Administrators for Water Development Groups (Luzon and Visayas/Mindanao), Water Finance Group, and Administrative Service Group.

The major groups are the Water Development Group (WDG), Water Development Finance Group (WDFG), and Administrative Services Group (ASG).

Affected personnel can either remain in government service with CSC attestation or avail of retirement/separation benefits provided under the Executive Order.

They may be placed in other government agencies requiring staff or transferred to the Civil Service Commission (CSC) until placement is found. Rejection of new assignment without justifiable cause results in separation and applicable benefits.

Affected personnel may avail retirement gratuity under RA 1616, or benefits under RA 660 or RA 8291 with additional incentives based on years of service, including up to 12 months basic salary per year of service for less than 20 years, more for longer service, plus refunds for Pag-IBIG contributions and commutation of unused leave credits.

Personnel who opt to retire or separate shall not be rehired in any agency of the Executive Branch, except for educational institutions and hospitals, within five years; reemployment in other branches counts as new civil service entry.

Funds shall come from available LWUA corporate funds subject to accounting rules; in case of deficiency, National Government assistance may be provided.

The Order took effect immediately upon its signing on April 13, 2005.

The Technical Assistance Department provides technical support to water districts and service providers, including project-related assistance to GFIs and WDs/WSPs on a competitive or value-threshold basis and extends assistance to non-creditworthy and pre-creditworthy water providers.


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