PD 198 Chapter 7 — Financial Provisions

Operating Budget and Expenses.

Section 67

SEC. 67. Operating Budget and Expenses. — The annual general operating budget and all expenses of the Administration shall be provided for in the General Appropriations Act from year to year.

Charges.

Section 68

SEC. 68. Charges. — To the extent that the Administration performs services, gives technical assistance, or reviews feasibility studies for the benefit and at the request of any particular local water utility, Administration shall establish charges therefore designed (within the reasonable capability of such local water utility to pay) to recover the costs of such services.

Revolving Loan Fund.

Section 69

SEC. 69. Revolving Loan Fund. — There is hereby created and established a Revolving Loan Fund, under the administration, control and supervision of the Board of Trustees, initially to consist of twenty million pesos; which is hereby appropriated out of any funds of the National Treasury, not otherwise appropriated, for such purpose. The sum of twenty million pesos is likewise authorized to be appropriated in the General Appropriations Act every fiscal year for the next nine years, beginning with the Fiscal Year 1973-1974, to augment and form part of said fund. All funds acquired by the Administration by grant, appropriation, borrowing or otherwise, for purposes of making loans to local water utilities shall be deposited in said Revolving Loan Fund, and may be used only for such purpose. As principal on said loans is repaid, the same including all earnings thereof shall inure to and become a part of the Loan Fund for use solely as part thereof and for no other purpose except for debt services of the Administration.

Appropriations.

Section 70

SEC. 70. Appropriations. — There is hereby appropriated for the organization of the Administration and its initial operations the sum of one million pesos from the general funds of the National Government, not otherwise appropriated. Thereafter, the annual general operating budget and all expenses of the Administration shall be included in the General Appropriations Act as provided for in

Borrowing Authority.

Section 71

SEC. 71. Borrowing Authority. — Subject to prior approval by the President of the Philippines, the Administration shall have the right and power to borrow additional sums: Provided, That the loans outstanding at any one time shall not exceed the principal sum of five hundred million pesos to domestic sources both Government and private and the principal sum of one hundred million dollars in United States currency or its equivalent in other currencies, to supplement said Revolving Loan Fund from: (a) Agencies of the Government of the Philippines, including, but not limited, to the Social Security System, Government Service Insurance System and Development Bank of the Philippines. (b) International Loan Sources, both public and private. The Secretary of Finance is authorized to assist with and underwrite such loans, with the approval of the President of the Philippines. Said underwriting shall include the increase obligation that may accrue to the Administration relative to foreign borrowing based upon unfavorable changes in the rate of currency exchange. Any and all loan obligations incurred by the Administration in virtue of this Section shall be fully and unconditionally guaranteed both as to principal and interest by the Government of the Republic of the Philippines which guaranty shall be expressed on the face of any document, note, bond, debenture, or other securities evidencing said loan obligations. Such guaranty shall be without compensation in any form whatsoever to the Government. SEC. 72. Depository for Reserves. — Any local water utility which is accumulating reserves for capital improvements may make specified time deposits of the same to the Administration in the manner authorized for banks in handling trust funds. Such funds shall not become a part of the Revolving Loan Fund, nor shall they be used for operating purposes by the Administration. GENERAL PROVISIONS

Separability of Provisions.

Section 73

SEC. 73. Separability of Provisions. — If any provision of this Decree, or the application of such provision to any person or circumstances, is declared invalid, the remainder of the Decree or the application of such provisions to other persons or circumstances shall not be affected by such declaration.

Effect on Other Acts.

Section 74

SEC. 74. Effect on Other Acts. — All acts or parts of acts, decrees, general orders, executive orders, proclamations, or rules and regulations inconsistent herewith are repealed or modified accordingly.

Effectivity.

Section 75

SEC. 75. Effectivity. — This Decree shall take effect immediately. Done in the City of Manila, this 25th day of May, in the year of Our Lord, nineteen hundred and seventy-three. (Sgd.) FERDINAND E. MARCOS President Republic of the Philippines By the President: (Sgd.) ALEJANDRO MELCHOR Executive Secretary In order to facilitate the implementation of this Presidential Decree No. 198, the Office of the President issued the following: Memorandum Order No. 363, dated June 22, 1973, creating the Task Force to lay the groundwork; and Memorandum Circular No. 364, dated July 20, 1973, designating the Officer-in-Charge of the Administration.

Section 67

Section 67 thereof.