Law Summary
Composition and Powers of the Board of Directors
- The Administration may appoint its personnel to the board if the district avails financial assistance.
- Board composed of six members when Administration appoints personnel.
Powers and Authorization of Water Districts
- Districts may exercise all powers expressly granted or necessarily implied by the Act.
- Granted power of eminent domain, subject to review by the Administration.
Protection and Management of Watershed Areas
- Districts have the right to protect waters and facilities.
- Authorized to take over management, administration, operation, and maintenance of watersheds within their boundaries.
Disposition of Income
- Income application prioritized as follows:
- First, pay contractual, statutory obligations, and essential operating expenses.
- Second, allocate at least 50% of remaining balance as reserve for debt service and operation/maintenance for calamities or unforeseen events.
- Third, use residual income as reserve for expansion and facility improvement.
Exclusive Franchise for Water Service
- No other franchise granted for domestic, industrial, or commercial water services within district unless board consents by resolution.
- Such resolution is subject to review by the Administration.
Loan Provisions
- Loan amounts programmed to ensure project completion for which loan is granted.
Rate Review and Appeals
- Local district rates or charges subject to review by the Administration after a hearing.
- Review becomes executory 7 calendar days after public posting.
- Water concessionaire may appeal to the National Water Resources Council within 30 days after posting period.
- Council decision appealable to the Office of the President.
- Council must decide within 30 days from appeal perfection.
Capitalization and Subscription
- Authorized capital of the Administration is Two Billion Five Hundred Million Pesos.
- Capital divided into 12,500,000 shares at 200 Pesos par value.
- National Government subscribes shares and may open subscription to private investors or financial institutions.
Payment for National Government Shares
- Balance of government subscription paid from a continuing appropriation from the National Treasury.
- Appropriation programmed and released as per budget laws until fully paid.
Government Assistance to Non-Viable Districts
- General Appropriations Act to include funds for financially non-viable districts as recommended by the Administration.
- Subsidy covers financial requirements but not exceeding source development and main transmission costs.
- Funds released directly to the Administration.
- Administration strives to align service levels with beneficiaries’ repayment capacity.
Special Projects Funding
- National Government to provide funds for waterworks/sewerage systems not yet covered by formed districts.
- Funds appropriated on request of the Administration, separate from capitalization.
- Existing funds released directly to the Administration.
- Administration expenses may be drawn from the specified account per Section 70.
Renumbering of Sections and Effective Date
- Sections 27-41 renumbered accordingly.
- Provisions take effect immediately upon signing.
This amendment reinforces the local control and development of water systems through enhanced administrative oversight, financial mechanisms, and exclusive rights, ensuring sustainable and efficient operation of water utilities in the Philippines.