Law Summary
Powers and Functions of the Authority
- Continuous corporate existence under its name.
- Authority to prescribe bylaws and adopt a corporate seal.
- Capacity to sue and be sued.
- Construct, maintain, and operate water supply systems including mains, pipes, reservoirs, machinery.
- Purify and regulate water usage, fix rates, and collect fees.
- Operate sanitary sewers and charge equitable rates.
- Manage storm drains, artesian wells, and springs upon request, depending on city/municipal funding.
- Acquire and dispose of real and personal property as necessary.
- Authority to construct works crossing streams, roads, and railways, ensuring safety and restoration.
- Right of way over government lands and exercise eminent domain.
- Issue regulations for sanitary protection of water sources with penalties for violations.
- Contract indebtedness and issue bonds up to ₱150 million, subject to Finance Secretary approval.
- Engage in all activities necessary to fulfill statutory purposes.
Governing Board of Directors
- Five-member Board: chairman, three members, and ex officio general manager.
- Required expertise: two in waterworks/public/sanitary engineering, one in public health, one in business management/finance.
- Members appointed by the President with the Commission on Appointments’ consent for six-year terms.
- Board mandated to submit annual reports to the President and Congress.
Board Meetings and Administrative Procedures
- Chairman convenes the first meeting to adopt rules and schedule regular meetings.
- Three members constitute a quorum; two affirmative votes required for resolutions.
- Per diem compensation for members attending meetings.
- Appointment and salary determination of the Board Secretary.
Indebtedness and Bond Issuance
- Board resolution and Finance Secretary approval required to incur debt or issue bonds.
- Bonds to be sold at par, redeemable after 10 years, payable in 40 years, bearing interest as determined.
- Bonds are tax-exempt and acceptable as government securities.
- Establishment of a sinking fund managed by the Central Bank to ensure bond repayment.
- Government guarantees principal and interest; sums advanced by the government are refundable by NWASA.
Management and Staffing
- Business conducted under Board direction by appointed general manager, assistant general manager, chief engineer, treasurer, auditor, and other employees.
- Key officers appointed by the President with Commission on Appointments’ consent; removable for cause by the President.
- Other employees covered by Civil Service laws, with exceptions for certain specialized positions.
- Auditor appointed by Auditor General with presidential approval.
Duties and Salaries of Key Officers
- Salaries fixed by Board with Finance Secretary approval.
- General manager acts as corporate representative, submits reports, and performs executive functions.
- Assistant general manager acts in absence of the general manager.
- Chief engineer and treasurer perform duties assigned by Board or general manager.
- Auditor responsible for auditing and settling accounts, with supporting staff appointed by Auditor General.
Dissolution of Metropolitan Water District and Transfer of Assets
- Dissolution of Metropolitan Water District; transfer of its records, assets, liabilities, bonds, and sinking funds to NWASA.
- Transfer of all government-owned waterworks and sewerage systems properties to NWASA.
- NWASA assumes all rights and obligations previously held by the Metropolitan Water District and relevant government entities.
- All legal references to former bodies deemed to refer to NWASA henceforth.
Ownership, Control, and Rate Setting
- NWASA owns and controls all water and sewer systems within its jurisdiction.
- Authority to charge uniform rates for water and sewer services across all areas served.
- Public Service Commission has no jurisdiction over NWASA in rate fixing or property matters.
- NWASA operates as an independent government agency under the Department of Public Works and Communications for administrative purposes.
National Government Subsidy for Non-Revenue Systems
- Non-self-supporting and non-revenue water systems and sanitary works eligible for subsidies from the National Government.
- Subsidy amounts determined by Budget Commissioner on recommendation by NWASA.
- Separate accounting for subsidy-related funds.
Contracting Procedures for Public Works
- Contracts costing ₱10,000 or more require General Manager and Board approval and follow government bidding procedures.
- Exceptions allowed for urgent projects to be undertaken by NWASA by administration.
Repeals and Modifications
- All inconsistent Acts, executive orders, administrative orders, proclamations, or parts thereof are repealed or modified accordingly.
Effectivity
- The Act takes effect immediately upon approval.