Core Functions of LWUA
- Provide institutional development services to water districts (WDs) and water service providers (WSPs).
- Strengthen lending practices based on sound development banking principles.
- Support graduation of WDs/WSPs to efficient financial resource use.
- Extend technical assistance and address increasing demand for water service providers.
Policy Shifts and Strategic Directions
- Improve investor confidence in the water supply and sewerage sector.
- Rationalize financial resource allocation through classification and graduation of WDs/WSPs.
- Expand funding sourcing freedom for water service providers.
- Increase participation of LGUs, GFIs, and PFIs in sector financing.
- Promote financial self-sustainability and improved service quality.
- Encourage self-sufficiency initiatives (amalgamation, private participation, cost recovery tariffs).
- Grant and promote initiatives for WDs/WSPs improvements.
- Educate consumers on the economic value of water as a scarce resource.
Organizational Structure
- Board of Trustees (BOT): Policy-making body with Chairman, four members (at least three from the National Government), DOF representation mandatory, and LWUA Administrator as ex-officio Vice-Chairman.
- LWUA Administrator: Appointed by the President, serves as CEO, supervises operations, executes policies.
- Deputy Administrators: Four deputies for Water Development Group (Luzon, Visayas/Mindanao), Water Financing, and Administrative Services.
- Water Development Groups (WDGs): Two groups handling Luzon and Visayas/Mindanao regions.
- Divisions under WDGs: Corporate Governance, Cost Recovery Tariff, Special Coordination, Engineering.
- Technical Assistance Department (TAD): Provides project-related technical assistance to WDs/WSPs and GFIs on a competitive basis depending on creditworthiness.
- Water Development Finance Group (WDFG): Strengthens lending policies, loan portfolio monitoring, loan collection, and creditor payments.
- Departments under WDFG include Treasury, Loan Portfolio Management, and Accounting.
- Administrative Services Group (ASG): Supports organizational functions via Human Resources, Property Management, and General Services.
- Abolishes the Office of the Senior Deputy Administrator, redistributes functions.
Staffing and Personnel Management
- Staffing pattern submission to Department of Budget and Management (DBM) within 30 days.
- Staffing flexibility allowed, maintaining plantilla count, subject to DBM approval.
Options for Personnel Affected by Rationalization
- Option to remain in government service with CSC attestation or temporary appointment tenure.
- Option to avail retirement/separation benefits.
Personnel Remaining in Government Service
- Placement by CSC in other agencies requiring personnel or transfer to CSC if no placement.
- Compensation transfers accordingly.
- Objection to reassignment without merit leads to separation and appropriate benefits without incentives.
Retirement/Separation Benefits
- Eligibility for permanent, temporary, casual, or contractual personnel.
- Choice between retirement gratuity under RA 1616 (without incentives) or retirement/separation benefits under RA 660/8291 with incentives.
- Incentives based on years of service (12 months to 34 months basic salary per year).
- Service after age 59 not counted for incentives.
- Portability of service under RA 7699 applies.
- Separation gratuity minimum aggregate P50,000.
GSIS Role and Government Share of Retirement Premiums
- GSIS to return government share of retirement premiums with interest for employees ineligible for RA 660 or RA 8291 benefits.
Additional Benefits for Retired/Separated Personnel
- Refund of Pag-IBIG contributions.
- Commutation of unused vacation, sick leave, and monetization of compensatory time-off.
Deployment and Transition
- LWUA management responsible for careful deployment of competent personnel compliant with civil service rules.
- Transition plan with step-by-step action to ensure smooth implementation and proper turnover documentation.
Funding
- LWUA corporate funds to cover rationalization and separation benefits.
- National Government assistance may be provided if LWUA funds are insufficient.
Effectivity and Option Period
- Retirement/separation package option available up to two months after DBM approval of staffing pattern; extensions only in exceptional cases.
- Affected personnel who opt for benefits excluded from new staffing selection.
- Retirement/separation is effective upon receipt of benefits.
Reemployment Restrictions
- Retired or separated personnel barred from reappointment/hiring in Executive Branch agencies (except education and hospitals) for five years.
- Reemployment in other government branches treated as new civil service entry.
Repealing Clause
- All inconsistent issuances, orders, and regulations are repealed, amended, or modified accordingly.
Immediate Effectivity
- The Order takes effect immediately upon issuance.