Creation of Metropolitan Waterworks and Sewerage System

Establishment of the Metropolitan Waterworks and Sewerage System (MWSS) within 30 days after enactment.
Principal office located in Manila with branches as necessary.
MWSS has jurisdiction over waterworks and sewerage systems in specified cities and municipalities within Metro Manila and surrounding provinces.
Local governments may opt to separate from the MWSS under certain conditions.
Wells and Springs Department is transferred to the Bureau of Public Works.
Local waterworks systems retain control over water sources within their jurisdictions.

MWSS exists for 50 years, renewable automatically for another 50 years.
Power to adopt by-laws, use a corporate seal, sue and be sued.
Authority to build, operate, and maintain water infrastructure and sewerage systems.
Regulate the use and prevent wastage of water.
Fix water rates and sewerage fees.
Acquire and dispose of properties necessary for its purposes.
Exercise eminent domain for system-related purposes.
Contract indebtedness and issue bonds with presidential approval.
Supervise commercial, industrial, and governmental waterworks in its jurisdiction.
Exclusive rights regarding water meter installation and maintenance.
Required to render annual reports to the President and Congress.

Board consists of a Chairman, General Manager (ex-officio Vice-Chairman), and three members.
One member nominated by the labor union representing the majority of rank-and-file employees.
Members must have expertise in engineering, business management, finance, law, or labor relations.
Appointed by the President with Commission on Appointments' consent.
Members serve staggered three-year terms.

Trustees may be suspended or removed by the President upon the Secretary of Justice's recommendation after due process.

Board adopts its procedural rules.
Majority constitutes a quorum; affirmative vote of three required for decisions.
Members receive per diem for attendance, capped monthly.

Management vested in General Manager, assisted by four Assistant General Managers and department heads.
General Manager appointed by the President for six years with a specified salary.
Assistant General Managers appointed by the Board and approved by the President with defined salaries.
Appointments and promotions have qualifications and are subject to Board approval.

General Manager authorized to discipline subordinate employees for various causes.
Disciplinary actions include removal, demotion, suspension, or fines.
Transfer without salary reduction is not disciplinary.
Board approval required for disciplinary actions.

Water rates and fees fixed to ensure net return does not exceed 12% on rate base.
Rates effective 15 days after publication.
Public Service Commission has exclusive jurisdiction on rate disputes.
Complaints must be filed within 30 days; do not stay rates.
Commission to complete proceedings within specified timeframes.
Excess payments reimbursed or credited if rates found excessive.

Income allocated first to obligations and operating expenses.
At least 50% of the balance reserved for system expansion and improvement.
Remaining funds used to enhance operation and maintenance, including employee benefits.

MWSS may provide technical and management assistance to local waterworks upon request.
Charges may include actual expenses plus 10% overhead.

National Waterworks and Sewerage Authority (NWSA) abolished upon MWSS organization.
Assets, liabilities, personnel, and records transferred to MWSS.
Inventory and valuation of NWSA assets conducted by Auditor General.
Employees absorbed by MWSS with merit-based personnel movement.
No reduction in salaries due to personnel movement.
Salary expenses capped at 35% of gross income.

NWSA personnel not appointed or who refuse appointment compensated for accumulated leave and retirement benefits.
Lump-sum payments for non-qualified employees under retirement laws.
Appropriations made for gratuities, subject to reimbursement by MWSS.
Wells and Springs Department personnel compensated from Congressional funds if not absorbed.
Refund required if employee reinstated in government after gratuity payment.

Local governments exercising separation rights receive transfer of local systems' assets, personnel, records, and liabilities.
Disagreements on liabilities settled by arbitration.
Severed employees paid gratuities as per provisions.
Wells and Springs Department transferred to Bureau of Public Works.
Systems transferred to local governments depending on service area.
Outstanding obligations assumed by local government; bond debts guaranteed by national government.
Conflicts among local governments resolved by a board of mayors, treasurers, and Auditor General's representative.

MWSS and local governments exempt from import duties and taxes on articles used exclusively for waterworks and sewerage systems.

If any provision is declared unconstitutional, the rest of the law remains unaffected.