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PD 198 Chapter 6 — Powers

Section 59–66 · 8 provisions

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗

General Corporate Powers.

Section 59

SEC. 59. General Corporate Powers. — The Administration shall have all the powers which are expressly granted to it under this Title, or which are necessary, implied from or incidental to the powers and purposes herein stated.

Borrowing and Security Therefor.

Section 60

SEC. 60. Borrowing and Security Therefor. — Administration may borrow funds as authorized in Section 71 of this Title, and issue as security therefor debentures constituting a lien on any and all securities, covenants and obligations of local water utilities held by Administration as security for loans made to such local water utilities.

Loans.

Section 61

SEC. 61. Loans. — Administration may make loans from its Revolving Loan Fund to qualified local water utilities, upon the following conditions and pursuant to the following procedures: (a) Qualification of Borrower. — Before any loan may be granted, the local water utility shall (1) hold a valid certificate of Conformance or a Condition Certificate of Compliance from the Administration, and (2) meet such other and further loan qualification requirements as the trustees may establish; (b) Feasibility Study. — A feasibility study of any proposed project for which loan funds are sought shall be made by a consultant prequalified by the Administration; (c) Security. — The Administration may take as security for such loans the authorized revenue bonds or other evidence of debt by the local water utility; (d) Loan Document and Procedures. — The trustees shall adopt uniform rules, loan documents and procedures to be used in the granting of loans. Such rules shall include provisions for security, payment and default, and shall authorize the Administration to act as receiver in the event of court proceedings for enforcement. (e) Funding of Loan. — When a loan is made to a local water utility, the entire amount of such loan shall be funded and set aside to assure completion of the project for which such loan was granted.

Regulations.

Section 62

SEC. 62. Regulations. — The Administration shall have the power and duty to establish standards for local water utilities, and adopt rules and regulations for the enforcement hereof The Administration shall vigorously consult and coordinate its actions with all governmental agencies active in the areas of public works and all other concerned agencies in the promulgation of these standards. Said standards and regulations shall include the following: (a) Water Quality. — Minimum drinking water standards including a uniform testing and reporting system. Said standards shall include bacteriological, chemical and physical parameters; (b) Design and Construction. — Minimum criteria for the design and construction of new or additional facilities for water supply, treatment, transmission and distribution, and for wastewater collection, treatment and disposal; (c) Equipment, Materials and Supplies. — Standards for the optimum selection and effective utilization of equipment, materials and supplies by local water and sewer utilities; (d) Operations and Maintenance. — Standardized procedures for operating and maintaining equipment and facilities; (e) Personnel. — The training of personnel who operate or manage local water utilities; (f) Organization. — Organizational and institutional criteria to assure independent operation and funding of local water utilities; (g) Accounting. — A uniform accounting system with uniform chart of accounts. Said standards and regulations also shall include stipulated levels of internal reporting to local water utility management.

Rate Review.

Section 63

SEC. 63. Rate Review. — Any publicly-owned local utility holding a Certificate of Conformance or a Conditional Certificate of Conformance from the Administration is hereby declared exempt from the jurisdiction of the Public Service Commission or its successor. Any rates or charges established by such a local water utility shall be adequate to provide for: (a) Reimbursement from all new water customers for the cost of installing new services and meters; (b) Revenue from all water deliveries and services performed by the district; (c) Annual operating expense of the district; (d) The maintenance and repairs of the works; (e) A reasonable surplus for replacement, extension and improvements; and (f) Payment of the interest and provide a sinking or other fund for the payment of debts of the district as they become due. The rates or charges established by such a local water utility shall be subject to review by the Administration to establish compliance with the above-stated provisions. Said review of rates or any charges therein shall be by the trustees, and in writing. Any party aggrieved by such review may within 30 days appeal in writing to the Public Service Commission or its successor which shall decide such appeal within 60 days thereafter. Failure of the Public Service Commission or its successor to promulgate its decision on such appeal within such period shall be deemed an affirmation of Administration's review.

Technical Assistance.

Section 64

SEC. 64. Technical Assistance. — Administration shall provide technical assistance to local water utilities; their boards, management and operating personnel, to aid in meeting the standards and criteria established by the Administration, and to encourage the upgrading of the operations and management of such local water utilities. Said technical assistance should consist of those matters which are practical to finance or develop on a national basis but are beyond the capability of the individual local water utility, as such.

Training Programs.

Section 65

SEC. 65. Training Programs. — Administration shall establish training programs and seminars for personnel of local water utilities. Programs shall include the areas of utility management, operations, maintenance and customer service. Administration shall have the power to issue Certificate of Completion for the satisfactory completion of a specified course of instruction. In the case of operational personnel, Administration may conduct appropriate examinations and issue corresponding Certificates of Competence to assist local water utilities to meet the personnel standards set pursuant to Section 63 (d) of this Title.

Certificate of Conformance.

Section 66

SEC. 66. Certificate of Conformance. — Administration may require report from all water utilities, conduct field investigations and review all available information to determine whether there has been conformance to its standards and procedures established pursuant to Section 63 of this Title. Upon a finding that said standards are met, the Administration shall issue a Certificate of Conformance to any such local water utility. Said Certificate maybe revoked after due notice and hearing as to any local water utility which thereafter fails to continue conformance with such standards. A Conditional Certificate of Conformance may be issued where procedures and practices have been adopted to assure conformances and a reasonable time schedule has been adopted. Failure to reach conformance as contemplated shall be cause for revocation of such Conditional Certificate, without hearing or other cause.

Back to PD 198 — full text

Provisions on this page are reproduced verbatim from official open data. See the attribution line.

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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