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‘ I &  1 
FOURTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
I 
First Regular Session 
COMMITTEE REPORT NO. 
(3 4 
Submitted by the Committees on Public Works; Public Services; and Finance on 
3yp 
Re: Senate Bill No. ;?4136. 
Recommending its approval in substitution of Senate Bill Nos. 589, 737, 1623, 1804, 
1823 and 2011. 
Sponsors: Senators Revilla, Jr., Enrile, Ejercito Estrada, Zubiri, Lapid and Legarda 
MR. PRESIDENT: 
The Committees on Public Works; Public Services; and Finance, to which were referred 
Senate Bill No. 589, introduced by Senator Ejercito Estrada, entitled: 
“AN ACT 
FURTHER 
AMENDING 
PRESIDENTIAL 
DECREE 
NO. 
198, 
OTHERWISE KNOWN AS THE PROVINCIAL WATER UTILITIES ACT, 
AS AMENDED, PROVIDING FUNDS THEREFOR AND FOR OTHER 
PURPOSES” 
Senate Bill No. 737, introduced by Senator Revilla, Jr., entitled: 
”AN ACT 
FURTHER 
AMENDING 
PRESIDENTIAL 
DECREE 
NO. 
198, 
OTHERWISE KNOWN AS THE PROVINCIAL WATER UTILITIES ACT, 
AS AMENDED, PROVIDING FUNDS THEREFOR AND FOR OTHER 
PURPOSES” 
Senate Bill No. 1623, introduced by Senator Zubiri, entitled: 
“AN ACT 
FURTHER 
AMENDING 
PRESIDENTIAL 
DECREE 
NO. 
198, 
OTHERWISE KNOWN AS THE PROVINCIAL WATER UTILITIES ACT, 
AS AMENDED, PROVIDING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES” 
Senate Bill No. 1804, introduced by Senator Enrile, entitled: 
“AN ACT 
FURTHER 
AMENDING 
PRESIDENTIAL 
DECREE 
NO. 
198, 
OTHERWISE KNOWN AS THE PROVINCIAL WATER UTILITIES ACT, 
AS AMENDED, PROVIDING FUNDS THEREFOR AND FOR OTHER 
PURPOSES” 


Committee Report on SBNs 589, 737, 1623, 1804, 1823, and 2011 -Local Wafer Ufilities Act. 
2 
Senate Bill No. 1823, introduced by Senator Lapid, entitled: 
“AN ACT 
FURTHER 
AMENDING 
PRESIDENTIAL 
DECREE 
NO. 
198, 
OTHERWISE KNOWN AS THE PROVINCIAL WATER UTILITIES ACT, 
AS AMENDED, PROVIDING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES” 
and Senate Bill No. 201 1, introduced by Senator Legarda, entitled: 
“AN ACT 
FURTHER 
AMENDING 
PRESIDENTIAL 
DECREE 
NO. 
198, 
OTHERWISE KNOWN AS THE PROVINCIAL WATER UTILITIES ACT, 
AS AMENDED, PROVIDING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES” 
have considered the same and have the honor to report them back to the Senate with 
the recommendation that the attached bill, Senate Bill No. 2 
4 8 6 , prepared by the 
Committees, entitled: 
“AN ACT 
FURTHER AMENDING PRESIDENTIAL DECREE NO. 198, AS 
AMENDED, OTHERWISE KNOWN AS “THE PROVINCIAL WATER 
UTILITIES ACT OF 1973”.” 
be approved in substitution of Senate Bill Nos. 589, 737, 1623, 1804, 1823 and 2011, 
with Senators Ejercito Estrada, Revilla, Jr., Zubiri, Enrile, Lapid and Legarda as authors 
thereof. 
Respectfully submitted: 
Chairmen: 
/ 
Committee on Finance 
ittee on Finance 


Commiitee Report on SBNs 589, 737, I623, 1804, 1823, and 2OII - Local Water Utilities Act. 
3 
Vice-Chairmen: 
SEN. EDGAR~O‘J. ANMRA 
Committee on Finance 
Member, Committee on Public Works 
SEN. MIRIAM DEFENSOR SANTIAGO 
Committee on Finance 
Member, Committee on Public Works 
JOKER P. ARROYO 
Committee on Public Service 
Committee on Finance 
Member, Committee on Public Works 
D J. GORDON 
on Public Works 
on Public Services 
ommittee on Finance 
MANUEL “LITO” M. LAPID 
Committee on Public Works 
Commiftee on Public Services 
Committee on Finance 
Committee on Finance 
MIGUEL F. ZUBlRl 
ommittee on Public Works 
Committee on Public Services 
Committee on Finance 
BENIGN0 SIMEON C. AQUINO 111 
Committee on Public Works 
RODOLFO G. BIAZON 
Committee on Public Works 
Committee on Public Services 
Committee on Finance 
PAN &W 
IL M.LACSON 
d m m i t t e e  on Public Works 
Committee on Public Services 
Committee on Finance 


Committee Report 011 SBNs 589, 737, 1623, 1804, 1823, and 2011 - Loerrl Wafer Ufiiifies Act. 
4 
ANTONIO “SONNY” F. TRILLANES IV 
CAYETANO 
Commiffee on Public Works 
Committee on Public Services 
Committee on Finance 
FRANCIS G. ESCUDERO 
Committee on Finance - 
LOREN B. LEGARDA 
Committee on Finance 
Ex-Officio Members: 
P 
AQUlLl ?%?i 
0 .PI ENTEL JR. 
Leader 
Hon. MANNY VILLAR 
Senate President 
Senate of the Philippines 
Pasay City 


Comntilfce Report OII SBNs 589, 737, 1623, 1804, 1823, und 2011 -Local Wafer Utilities Act. 
4 
CAYETANO 
Committee on Public Works 
Committee on Public Services 
Committee on Finance 
FRANCIS G. ESCUDERO 
Committee on Finance 
Committee on F i n h e  - 
LOREN B. LEGARDA 
Committee on Finance 
Ex-Officio Members: 
A 
ent Pro-Tempore 
/Minority Leader 
Hon. MANNY VILLAR 
Senate President 
Senate of the Philippines 
Pasay City 


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8 Jill- 2U 
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FOURTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
1 
First Regular Session 
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S E N A T E  
Prepared by the Committees on Public Works, Public Services and Finance with 
Senators Ejercito Estrada, Revilla, Jr., Zubiri, Enrile, Lapid and Legarda as authors 
AN ACT 
FURTHER AMENDING PRESIDENTIAL DECREE NO. 198, AS AMENDED, 
OTHERWISE KNOWN AS “THE PROVINCIAL WATER UTILITIES ACT OF 1973“ 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1, Section 67 of Presidential Decree No. 198, as amended, is hereby 
further amended to read as follows: 
“SEC. 67. Capital Stock. - The authorized capital of the Local Water Utilities 
Administration is [Two] TWENTY-FIVE Billion [, Five Hundred Million] Pesos 
(P25,000,000,000.00) 
divided into [Twelve] SIXTY-TWO Million Five Hundred 
Thousand (62,500,000) shares of stocks with a par value of FOUR [Two] Hundred 
Pesos (P400.00) per share which shall be subscribed by the National Government AND 
GOVERNMENT FINANCIAL INSTITUTIONS and opened to subscription by private 
investors [or government financial institutions.] SUBJECT TO THE APPROVAL BY 
THE 
DEPARTMENT OF FINANCE: 
PROVlD€D, 
THAT 
ALL 
SUBSIDIES 
PREVIOUSLY PROVIDED BY THE NATIONAL GOVERNMENT TO LWUA AFTER 
THE FULL SUBSCRIPTION OF THE NATIONAL GOVERNMENT OF THE ORIGINAL 
CAPITAL STOCK OF TWO BILLION FIVE HUNDRED MlLLtON PESOS 
(P2,500,000,000.00), WHICH WERE USED AS LOANS OUTLAY TO WATER 
DISTRICTS SHALL BE CREDITED AS PART OF THE NATIONAL GOVERNMENT 
PAYMENT FOR SUBSCRIPTION TO THE ADDITIONAL CAPITAL STOCK OF THE 
ADMINISTRATION: 
PROVIDED, 
FURTHER, 
THAT 
PRIVATE 
SECTOR 
INVESTMENTS SHOULD NOT BE MORE THAN FORTY PERCENT (40%) OF THE 
TOTAL SUBSCRIBED CAPITAL STOCK.” 
“SEC. 2. Section 72 of Presidential Decree No. 198, as amended, is hereby 
further amended to read as follows: 


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‘‘ Sec. 72. Domestic AND FOREIGN Borrowing Authority. - The Administration 
shall have the authority to borrow money from all domestic AND FOREIGN loan 
sources whether government or private: Provided, That its loans outstanding BOTH 
from domestic AND FOREIGN sources [at any one time] shall not exceed [One Billion 
Pesos] AN AGGREGATE CEILING OF NINE HUNDRED MILLION U.S. DOLLARS 
(US$900,000,000.00): 
PROVIDED, 
THAT 
ALL 
DOMESTIC 
AND 
FOREIGN 
BORROWINGS OF LWUA SHALL BE APPROVED BY THE DEPARTMENT OF 
FINANCE (DOF), BANGKO SENTRAL NG PILIPINAS (BSP) AND OTHER ENTITIES 
AS REQUIRED BY PERTINENT LAWS AND REGULATIONS.” 
SEC. 3. Paragraph 1 of Section 73 of Presidential Decree No. 198, as amended, 
is hereby further amended to read as follows: 
“SEC. 73. Authority to Contract Foreign Loan.- The Administration is hereby 
authorized to contract loans, credits, in any convertible foreign currency or capital 
goods, and to incur indebtedness from time to time with foreign governments, or any 
international financial institutions or fund sources, including supplier‘s credits or deferred 
payment arrangements, the total outstanding amount of which, excluding interests, shall 
not exceed [five hundred million US$] ITS AGGREGATE DOMESTIC AND FOREIGN 
BORROWING AUTHORITY 
OF 
NINE HUNDRED MILLION 
US DOLLARS 
(US$900,000,000.00) or the equivalent thereof in other currencies, on terms and 
conditions promulgated by the Secretary of Finance and the Monetary Board for the 
accomplishment of its objectives; and to enter into and execute contracts and other 
documents specifying such terms and conditions. 
“The President of the Philippines, [by himself,] or [through] his OR HER duly 
authorized representative, is hereby authorized to negotiate and contract with foreign 
governments or any international financial institution or fund sources in the name and 
on behalf of the administration, one or several loans, for the purpose of implementing 
the Administration’s program for the promotion and development of local water utilities 
through the Administration’s financing or lending operations. 
“The President of the Philippines, [by himself] or [through] his OR HER duly 
authorized representative, is hereby further authorized to guarantee, absolutely and 
unconditionally, as primary obligor and not as mere surety, in the name and on behalf of 
the Republic of the Philippines, the payments of the loans, credits and indebtedness up 
to the amount herein authorized, over and above the amounts which the President of 
the Philippines pursuant to loan agreements entered into with foreign governments or 
any international financing institution or fund sources. 
“The loan credits and indebtedness contracted under this section shall be in 
accord with the provisions of [the] REPUBLIC ACT NO. 4860, OR THE Foreign 
Borrowing Act as amended [.I (As amended by Sec. 36, PD 768); THE PROVISIONS 
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OF SECTION 123 OF REPUBLIC ACT NO. 7653, OTHERWISE KNOWN AS THE 
NEW CENTRAL BANK ACT; THE PROVISIONS OF SECTION 23 OF CENTRAL 
BANK CIRCULAR NO. 1389, AS AMENDED; SECTION 20, ARTICLE VI1 AND 
SECTION 21, ARTICLE XI1 OF THE 1987 CONSTITUTION AND OTHER PERTINENT 
LAWS AND REGULATIONS.” 
SEC. 4. Repealing Clause - All or any provisions of the Provincial Water Utilities 
Act of 1973 which are contrary or inconsistent with any provision hereof are hereby 
deemed repealed or modified accordingly. 
SEC. 5. - Effectivity. - This Act shall take effect after fifteen (1 5) days following its 
publication in two (2) newspapers of general circulation. 
Approved, 
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