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