Privatization of MWSS Operations

Executive Order No. 311 is premised on the need for urgent and effective measures to address the nationwide water crisis.
Executive Order No. 311 implements the state policy encouraging the private sector—as the nation’s main engine for growth and development—to engage in financing, construction, operation and maintenance of infrastructure and development projects, including water supply and sewerage.
Executive Order No. 311 directs the privatization framework for the Metropolitan Waterworks and Sewerage System (MWSS) to enable the MWSS to become more effective, efficient, and responsive to the need for potable water.

Executive Order No. 311 is issued by the President by virtue of the powers vested in Republic Act No. 8041, the National Water Crisis Act of 1995.
Executive Order No. 311 is anchored on Republic Act No. 8041 authorizing the President to enter into negotiated contracts for projects under Build-Operate-Transfer (BOT) and related schemes for a limited period after the effectivity of Republic Act No. 8041, or until 15 July 1996.
Executive Order No. 311 implements the authorization in Republic Act No. 8041 to revamp executive leadership and reorganize the MWSS, including privatization of any or all segments, operations, or facilities as necessary.
Executive Order No. 311 references the earlier Executive Order No. 286 (6 December 1995), issued pursuant to Republic Act No. 8041, as the reorganization framework that prepared the ground for eventual privatization.

Executive Order No. 311 orders that the Metropolitan Waterworks and Sewerage System (MWSS) shall enter into arrangements that involve or enable private sector participation in any or all of the MWSS segments, operations, and/or facilities.
Executive Order No. 311 allows private sector participation to include, without limitation, franchising, concession, management, or other arrangements.
Executive Order No. 311 allows private sector participation through privatization.
Executive Order No. 311 allows project contracts under Build-Operate-Transfer (BOT) and/or related schemes for financing, construction, repair, rehabilitation, improvement, and operation of water facilities and projects related to consumers.

Executive Order No. 311 provides that MWSS may carry out responsibilities under the Executive Order subject to approval of the President.
Executive Order No. 311 identifies the legal authorities and governing bases for Presidential approval, including:
- The provisions of Republic Act No. 8041 (National Water Crisis Act of 1995).
- Proclamation No. 50, as amended, and its related statutes and implementing rules and regulations; for this purpose, the inclusion of the MWSS in the list of government-owned or controlled corporations for retention under Executive Order No. 37 is hereby revoked.
- Republic Act No. 6957, as amended by Republic Act No. 7718, and its implementing rules and regulations.
- Such other laws, rules, orders, and/or proclamations that the MWSS may deem appropriate.

Executive Order No. 311 revokes, amends, or modifies all executive issuances, orders, rules and regulations, and/or similar issuances that are inconsistent with the Executive Order.
Executive Order No. 311 expressly revokes the effect of Executive Order No. 37 as it relates to the retention list insofar as it included the MWSS, consistent with the Proclamation No. 50 framework.