Amendment to Metropolitan Waterworks Charter

MWSS implemented an interim program for water supply continuity up to 1973.
A long-range construction and improvement program began in 1974 to meet growing water demand.
Expansion includes service to population and industrial/commercial entities.
Sewerage system maintenance recognized as vital, necessitating fiscal projections and capitalization.

MWSS authorized a capital stock of one billion pesos divided into 10 million shares (par value of 100 pesos each).
Shares are non-transferable and non-negotiable, subscribed and paid by the Government.
Subscription includes conversion of bonded indebtedness, organizational loans, reparations-related costs, and possible future capital contributions.

MWSS empowered to construct water-related works across streams, canals, roads, railways, public or private property.
Works must ensure safety, restoration of crossed properties, and avoid impairing usefulness.
Right-of-way granted on government lands with due notice; entry into private property allowed with fair compensation.
Compensation includes fair market value based on tax declarations and value of improvements.
Claims for compensation must be filed within five years of establishment; no suit thereafter.

MWSS required to prevent environmental pollution in projects and promote conservation and development of resources.
Provision for beautification and tourism promotion at reservoirs and treatment facilities.
Necessary corporate funds allocated for these purposes.

Board composed of five members: Chairman, three Trustees (appointed by President), and General Manager as ex officio Vice-Chairman.
Members serve three-year terms; must be licensed professionals with 10+ years experience.
Board powers include policy formulation, budget adoption, staffing determination (excluding WAPCO rules), appointments of General Manager and assistants, suspension/removal of personnel, employment guidelines, and rulemaking for sanitary protection and operations.

General Manager appointed by President; term at President’s pleasure; minimum compensation fixed.
Four Assistant General Managers assigned to key functional areas, appointed by Board, with minimum salaries.
Temporary designation of acting officers during absences specified.

Execute Board policies and ensure efficient management.
Recommend policies and measures to Board.
Direct operations and administrative functions; delegate duties.
Appoint, promote, suspend, or remove personnel subject to Board approval and Civil Service law.

Board may incur domestic indebtedness or issue bonds with required approvals.
Bonds exempt from all taxes and acceptable as government security.
Sinking fund established under Treasurer of the Philippines; funds invested with approvals.
Philippine government guarantees bond payment and reserves appropriations for defaults.
Annual reserve of 5% net operating revenues set aside as sinking fund, ceasing when reserve exceeds advances.
Domestic indebtedness capped at one billion pesos.
Foreign loans up to two hundred million US dollars authorized; President authorized to negotiate and guarantee.
Exemptions from taxes and import restrictions for loans and related procurements.

Works costing 75,000 pesos or more require public bidding and approval by Board.
Bonds required from contractors for performance and obligations.
Exceptions exist for emergency work and projects below the threshold.

Malicious destruction or interference with MWSS property punishable by fines (1,000 to 5,000 pesos), imprisonment (1 to 5 years), or both.
Damage to water or sewage flow systems likewise penalized.
Illegal connections subject to fines (up to 1,000 pesos), imprisonment (up to six months), or both.
MWSS authorized to disconnect illegal connections pending court action.

Prior limitation that salaries and benefits not exceed 35% of gross income removed.

MWSS declared a nonprofit entity, reinvesting all returns into expansion and improvement.
Exempt from all national and local taxes, duties, fees, imposts, charges, including income, franchise, and real property taxes.
Exempt from taxes on imported foreign goods for operations and projects.