Franchise for Water Supply in Calapan

The grantee can acquire land by grant, lease, or purchase for reservoirs, dams, buildings, and storage tanks.
May obtain rights of way up to 10 meters wide for connecting reservoirs to the municipality's strong-material zone.
Authorized to institute expropriation proceedings in courts to acquire necessary land portions.

Water mains and pipes within the strong-material zone must be installed at least 45 cm below ground.
Pipes between reservoirs and supply sources can be above ground on the grantee's right of way, except when crossing public areas.
Construction must comply with Public Service Commission-approved plans and be executed professionally.
Grantee must adjust infrastructure to avoid interference with public sewers or drains as directed.
Obligation to supply water to applicants within 15 days, respecting system capacity.
Required to expand system capacity upon increased demand, subject to Commission's approval.
Distribution limited to designated streets and public places.
Connection charges must be fair and regulated by the Public Service Commission.

All equipment must be modern and first-class.
Installation must not obstruct or interfere with public streets and places.
Operations subject to reasonable regulations imposed by the Public Service Commission.

Grantee must promptly restore sidewalks and public thoroughfares after installation or repair works.
Obliged to remove all construction debris and return areas to original conditions.
Must relocate mains or pipes at own expense if required by provincial or municipal authorities due to road or street extensions.

Grantee is liable for damages to government property arising from non-construction or negligence.
Responsible for compensating individuals or entities for damages caused by faults or negligence in operation.

Written acceptance must be filed within 120 days after certificate issuance.
Work commencement must occur within 6 months of acceptance under district engineer supervision.
System must be operational within 18 months of acceptance.
Required to maintain a first-class water system and service thereafter.
Obligated to pay quarterly to the municipal treasury: 1% of gross earnings for the first 15 years, 2% for the last 10 years.

An earnest money deposit of 1,000 pesos or approved securities must be made upon acceptance as guarantee.
Failure to commence operations within specified timelines, except for force majeure, results in forfeiture of deposit to the provincial government.
Deposit and interest to be returned upon timely commencement and operation, with time extensions allowed for force majeure delays.

Upon franchise termination, all lands, rights, and properties revert to the government entities that owned them pre-franchise.
All properties used under this franchise also become government property.

Grantee's books and accounts are open to inspection by the provincial treasurer or authorized representatives.
Semiannual reports on gross and net receipts and business condition must be submitted in duplicate.
Standard real estate and personal property taxes apply to grantee’s assets.

Franchise transfer or lease to others requires prior approval by Congress.
Any such agreements must bind transferees to comply with all franchise terms.
Government reserves the right to take possession and operate the system during national emergencies affecting safety and order.

Public Service Commission may declare franchise forfeiture for non-compliance except for causes of force majeure.
The grantee may seek remedies consistent with provisions in Commonwealth Act No. 146 if forfeiture is declared.

Government may require grantee to surrender the franchise for the government to operate the water system.
Equipment and system to be transferred at cost minus reasonable depreciation.