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PRESIDENTIAL DECREE NO. 1479
PRESIDENTIAL DECREE NO. 1479 -
FURTHER AMENDING PRESIDENTIAL DECREE NO. 198 OTHERWISE KNOWN AS THE
"PROVINCIAL WATER UTILITIES ACT OF 1973", AS AMENDED BY PRESIDENTIAL
DECREE NO. 768
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WHEREAS,
Presidential Decree No. 198, as amended by Presidential Decree No. 768,
declares as a national policy the local operation and control of water
system; authorizes the formation of local water districts; provides for
the administration of such districts and charters a national
administration to facilitate improvement of local water utilities.
WHEREAS, in order to accelerate the development and expansion of
domestic water systems, there is a need to further amend certain
provisions of Presidential Decree No. 198, as amended. chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree the further amendment of Presidential Decree No. 198,
as follows:cralaw:red
Section 1. The first paragraph of Section 6 of
Presidential Decree No. 198, as amended, is hereby amended to read as
follows:cralaw:red
"Sec. 6. Formation of District. — This Act is
the source of authorization and power to form and maintain a district.
For purposes of this Act, a distinct shall be considered as a
quasi-public corporation performing public service and supplying public
wants. As such, a district shall exercise the powers, rights and
privileges given to private corporations under existing laws, in
addition to the powers granted in, and subject to such restrictions
imposed, under this Act. chanroblesvirtualawlibrary
xxx
xxx
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(c) A statement completely transferring any and all
waterworks and/or sewerage facilities managed, operated by or under the
control of such city, municipality or province to such district upon
the filing of resolution forming the district.
Section 2. A new sentence is hereby added to
Section 8 of the same decree to read as follows:cralaw:red
"Sec. 8. Number and Qualifications. —.
Provided, however, that if the district has availed of the financial
assistance of the Administration, the Administration may appoint any of
its personnel to sit in the board of directors with all rights and
privileges appertaining to a regular member, for such period as the
indebtedness remains unpaid, in which case the board shall be composed
of six members." chanroblesvirtualawlibrary
Section 3. Section 25 of the same decree is
hereby amended.
Section 4. Section 26 of the same decree is hereby
amended to read as Section 25 as follows:cralaw:red
"Sec. 25. Authorization. — The district may exercise
all the powers which are expressly granted by this Title or which are
necessarily implied from or incidental to the powers and purposes
herein stated. For the purpose of carrying out the objectives of this
Act, a district is hereby granted the power of eminent domain, the
exercise thereof shall, however, be subject to review by the
Administration." chanroblesvirtualawlibrary
Section 5. Section 27, 28, 29, 30 and 31
of the same decree are hereby amended to read as Section 26, 27, 28, 29
and 30, respectively.
Section 6. Section 32 of the same decree is
hereby amended to read as Section 31.
"Sec. 31. Protection of Waters and Facilities of
District. — A district shall have the right to
xxx
xxx
xxx
(e) take over the management, administration,
operation and maintenance of all watersheds within its territorial
boundaries."
Section 7. Sections 33, 34, 35, 36, 37, 38,
39, 40 and 41 of the same decree are hereby amended to read as Section
32, 33, 34, 35, 36, 37, 38, 39 and 40, respectively.
Section 8. A new section is hereby inserted to
be known as Section 41 which shall read as follows:cralaw:red
"Sec. 41. Disposition of Income. — The income
of the district shall be disposed of according to the following
priorities:cralaw:red
"First to pay its contractual and statutory obligations and to meet its
essential current operating expenses.
"Second, to allocate at least fifty percent (50%) of the balance
exclusively as a reserve for debt service and operating and
maintenance, to be used for such purposes only during periods of
calamities force majeure or unforeseen events.
"Third, to allocate the residue as a reserve exclusively for expansion
and improvement of its physical facilities."
Section 9. Section 47 of the same decree is
hereby amended to read as follows:cralaw:red
"Sec. 47. Exclusive Franchise. — No franchise
shall be granted to any other person or agency for domestic, industrial
or commercial water service within the district or any portion thereof
unless and except to the extent that the board of directors of said
district consents thereto by resolution duly adopted, such resolution,
however, shall be subject to review by the Administration." chanroblesvirtualawlibrary
Section 10. Section 61 of the same decree is
hereby amended to read as follows:cralaw:red
"Sec. 61. Loans. —chanroblesvirtualawlibrary
xxx
xxx
xxx
(f) Funding of Loan. — When a loan is made to
local water utility, the necessary amount of such loan shall be
programmed to assure completion of the project for which such loan was
granted."
"Sec. 63. Rate Review. —chanroblesvirtualawlibrary
xxx
xxx
xxx
Section 11. The last paragraph of Section 63
of the same decree is hereby amended to read as follows: chanroblesvirtualawlibrary
The rates or charges established by such local district, after hearing
shall have been conducted for the purpose, shall be subject to review
by the Administration to establish compliance with the abovestated
provisions. Said review of rates or charges shall be executory and
enforceable after the lapse of seven calendar days from posting thereof
in a public place in the locality of the water district, without
prejudice to an appeal being taken therefrom by a water concessionaire
to the National Water Resources Council whose decision thereon shall be
appealable to the Office of the President. An appeal to the Council
shall be perfected within thirty days after the expiration of the
seven-day period of posting. The Council shall decide on appeal within
thirty days from perfection. chanroblesvirtualawlibrary
Section 12. Section 67 of the same decree is hereby
amended to read as follows:cralaw:red
"Sec. 67. Capital Stock. — The authorized capital of
the Local Water Utilities Administration is Two Billion, Five Hundred
Million Pesos divided into Twelve Million Five Hundred Thousand share
of stock with a par value of Two Hundred Pesos per share which shall be
subscribed by the National Government and opened to subscription by
private investors or government financial institutions."
Section 13. Section 68 of the same decree is hereby
amended to read as follows:cralaw:red
"Sec. 68. Payment for National Government
Shares. — All amounts.at par value. Whatever balance remaining of
said subscription shall be paid from a continuing appropriation which
is hereby made out of any funds in the National Treasury not otherwise
appropriated, such annual appropriation to be programmed and released
in accordance with pertinent budget laws: Provided, That this
continuing appropriation shall remain in force until the balance of the
unpaid subscription of the government to the capital stock of the
administration have been paid in full."
Section 14. New sections are hereby inserted
to be known as Section 76 and 77, respectively, which shall read as
follows:cralaw:red
"Sec. 76. Government Assistance to Non-Viable
Districts. — There shall be included in the General Appropriations Act
an outlay in the form of National Governmentd or subsidy to meet the
financial requirements in the development of water supply systems of
water districts which are determined by the Administration to be
financially non-viable in such amount as the Administration may
recommend, but not exceeding the cost of source development and main
transmission line. Releases of such funds shall be made directly to the
Administration. In the development of such water supply systems, the
Administration shall exert all efforts to bring the levels of service
within the cost repayment capacity of the beneficiaries." chanroblesvirtualawlibrary
"Sec. 77. Special Projects. — Whenever required by
the National Government to provide funding requirements for the
development of waterworks and sewerage systems in municipalities,
cities or provinces, or portions thereof not yet covered by a duly
formed water district, an outlay shall be provided in the General
Appropriations Act, upon the request of the Administration, separate
from its capitalization, for the purposes of meeting the financial
requirements of the project: Provided, however, That in the event that
funds for the project have already been appropriated by the National
Government, such funds shall by released directly to the
Administration. Expenses incurred by the Administration for the service
rendered may be drawn from such account as provided in Section 70 of
this Title."
Section 15. Sections 76, 77, 78 and 79 of the same
decree are hereby amended to read as Sections 78, 79, 80 and 81,
respectively.
Section 16. This Decree shall take effect
immediately.
Done in the City of Manila,
this 11th day of June, in the year of Our Lord, nineteen hundred
and seventy-eight.
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