THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
4 
OF THE PHILIPPINES 
) 
First Regular Session 
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S E N A T E  
s. No. 
29 
Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
The attached bill seeks to create the Cebu Water Resources 
Development and Management Authority primarily to integrate, plan, develop and 
manage all water supply and distribution services in Metro Cebu and Cebu 
Province. 
Cebu's burgeoning economic development and population growth demand 
a corresponding effective and efficierlt water supply both for domestic and 
commercial purposes. To achieve this goal, there is a need to integrate the 
planning, development, and management, embracing all the concerns and 
activities of various agencies which have to do with water supply, from the 
conservation of the watersheds, maintenance of ecological and environmental 
factors for preserving the potability of water to the distribution services of water to 
users. 
For Cebu to fulfill its role as the major catalyst of development, as a 
trading center for the Central Philippines and Northern Mindanao, this pressing 
and critical problem of adequate water supply must be solved expeditiously. The 
integration of the direction and activities of all the agencies having a stake in this 
crucial concern is necessary to attain an accelerated and cost-effective solution 
to this urgent problem. 
With those grave considerations in mind, it is felt that a system of 
integrated planning, development and management of water supply and 
distribution services could best be achieved by a separate agency specifically 
established and tasked for the purpose. 
Accordingly, the approval of this bill is earnestly sought. 
A4 
SERGIO OSMENA Ill 
Senator 


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THIRTEENTH CONGRESS OF THE REPUBLI 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
S E N A T  
S. No. 29 
Introduced by Senator S. R. OsmeAa 111 
AN ACT 
CREATING THE CEBU WATER RESOURCES DEVELOPMENT AND 
MANAGEMENT 
AUTHORITY, 
CHARGED 
WITH 
INTEGRATING 
AND 
COORDINATING 
VARIOUS 
AGENCIES 
AND 
ORGANIZATIONAL 
INSTRUMENTALITIES DIRECTLY OK INDIRECTLY HAVING TO DO WITH 
THE WATER SUPPLY AND SERVICES FOR METRO CEBU AND CEBU 
P ROVl N C E. 
Be it enacted by.the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION I. 
Title. - This Act shall be known and cited as the “Charter of 
the Cebu Water Resources Development and Management Authority.” 
SEC. 2. Creation of the Cebu Water Resources Development and 
Management Authority. - There is hereby established a body corporate to be 
known as the Cebu Water Resources and Management Authority which shall be 
attached to the Department of Environment and Natural Resources for the 
purpose of policy coordination. The principal office of the Authority shall be 
located in Cebu City. 
The Authority may have such branches, agencies or subsidiaries as it may 
deem proper and necessary. 
SEC. 3. 
Primary Purpose and Objectives. - 
The Authority shall 
principally undertake the economical, efficient and effective control for the 
protection 
of watersheds, 
including the 
ecological 
and 
environmental 
requirements for safe water supply; likewise the planning, construction, and 
management of water impounding structures, reservoirs and extraction of water 
from natural aquifers; further, the supervision of water supply 
services to be 
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undertaken in Metro Cebu, as well as the entire Cebu Province. In addition, it 
shall have the following objectives: 
a) To encourage and promote the conservation and development 
of all watershed areas of the Province in line with the objectives of 
ecological and environmental protection in general, and, the maintenance 
of unpolluted and safe potable water supply, in particular. 
b) To develop and upgrade surface water resources, as well as, to 
monitor and control the exploitation of underground aquifers. 
c) To upgrade the water supply system to effectively render 
efficient water service to domestic and commercial consumers. 
SEC. 4. Funcfions, Powers and Dufies. - The Authority shall have the 
following functions, powers and duties: 
a) To formulate a comprehensive and integrated development 
policy and program for the over-all water resources of Metro Cebu and 
Cebu Province and to implement, review and update such policy and 
program periodically; 
b) To control, supervise and construct, maintain, and operate all 
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infrastructure and facilities attendant to the services of providing efficiently 
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adequate water supply to the Cebu Metropolis and Province. 
c) To promulgate rules and regulations governing the planning, 
development, maintenance, operation, and improvements of water 
sourcing facilities and to control and supervise its construction of any 
structure or distribution system rendering any water service in Metro Cebu 
and Province; 
d) To exercise all powers of a corporation under the Corporation 
Code of the Philippines, insofar as those powers are not inconsistent with 
the provisions of this Act. 
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e) To acquire, purchase, own, administer, lease, mortgage, sell or 
otherwise dispose of any property granted, ceded or purchase pursuant to 
its business functions and services; 
f) To exercise the power of eminent domain in the pursuit of its 
purposes and objectives; 
g) To control and service the levying and collecting of dues, 
charges, fees or assessments for the services of providing water system 
and use of water by consumers and for any other services provided by the 
Authority. 
h) To retain and appropriate dues, fees and charges collected by 
the Authority relative to the supplying of water for such measures as may 
be necessary to make the Authority more effective and efficient in the 
discharge of its assigned tasks; 
i) To invest its idle funds, as it may deem proper, in government 
securities and other evidences in indebtedness; and 
j) To provide services, whether on its own or otherwise, in the 
watersheds, water supply source areas, and water distribution system as 
may be necessary or in connection with the maintenance and operations 
of supplying water systems and other facilities. 
SEC. 5. Police Authority, - The Authority shall have the power to 
exercise such police authority as may be necessary to maintain the security of 
watershed areas, dams and water reservoirs, water extraction facilities and 
supply systems or areas of operation to carry out its functions and attain its 
purpose and obligations: Provided, That the Authority may request assistance of 
law enforcement agencies, including request for deputization as may be required. 
Such police authority shall be exercised in connection with the following, among 
others: 
a) Control of habitation and farming activities in watershed areas; 
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b) Prevention of human-caused damage to the ecological and 
environmental conditions of reserved areas for purposes of water 
conservation, safety and anti-pollution measures; 
c) Guarding and supervising the security of pipe lines and water 
distribution systems against vandalism and illegal tapping; 
d) Regulation and supervision of private security agencies 
operating within areas of jurisdiction of the Authority; 
e) Enforcement of rules and regulations promulgated by the 
Authority pursuant to law; and 
f) In case of emergencies or imminent danger involving threat to 
the infrastructure of the water supply and water systems caused by natural 
calamities as well as deeds of terrorism. 
SEC. 6. Board of Directors. - The Board shall be composed of eleven 
(1 1) members. The chairman shall be the Secretary of Environment and Natural 
Resources. The vice-chairman shall be the General Manager of the Authority. 
The following shall be the members: 
a) Chairman of LWUA; 
b) Secretary of the Department of Finance or his duly authorized 
representative; 
c) Secretary of the Department of Justice or his duly authorized 
representative ; 
d) Secretary of the Department of Interior and Local Government 
or his duly authorized representative; 
e) A representative from the MCWD; 
9 Three (3) members from the private sector recommended by the 
Governor of the province of Cebu who shall serve for a term of three (3) 
years. 
g) The Governor of Cebu or his duly authorized representative. 
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The Board shall promulgate its rules relative to meetings, quorum 
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requirements and compensation or allowances of the members of the Board. 
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SEC. 7. Functions, Powers and Duties of the Board. - In addition to 
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the powers vested in the Board under the other sections of this Act, the Board 
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shall have the following functions, powers and duties: 
a) To define and approve the programs, plans, policies, 
procedures and guidelines of the Authority for the development and 
management of the water supply and distribution system of Metro Cebu 
and the Province; 
b) To approve the Authority’s organizational and administrative 
structure, staffing patterns, operating and capital expenditures, and 
financial budgets, upon recommendation of the General Manager, subject 
to existing laws, rules and regulations; 
c) To approve salary ranges, benefits and other terms and 
conditions of service for all officers and employees of the Authority, upon 
recommendation of the General Manager, which shall, as far as possible, 
be competitive with those offered in the private sector, subject to existing 
laws, rules and regulations; 
d) To fix the rate of dues, charges, fees and assessments for the 
supply and use of water upon recommendation by the General Manager; 
and 
e) Generally, to exercise all the function and powers necessary or 
incidental to attain the purposes and objective of this Act. 
SEC. 8. Functions, Powers and Duties of the General Manager. - 
The General Manager shall be directly responsible to the Board and shall have 
the following functions, powers, and duties: 
a) To direct and supervise the day-to-day management, operation 
and administration of the Central office of Water Resources Supply 
Development and Distribution System; 
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b) To implement and enforce decisions, orders, rules and 
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c) To undertake research, studies, investigations and other 
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activities related to the integrated operation and future improvements of 
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watershed management, development of water supply and distribution 
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system, 
and to submit 
comprehensive 
reports 
and appropriate 
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d) To appoint, transfer, suspend, remove or otherwise discipline 
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and subordinate officer or employee of the Authority, subject to the 
approval of the Board and in accordance with the existing rules and 
regulations of the Civil Service Commission and the Commission on Audit. 
e) Within the limits of the authority delegated to him by the Board, 
to execute contracts, incur obligations, acquire and dispose of assets, and 
deliver documents on behalf of the Authority. 
regulations issued, prescribed or adopted by the Board; 
recommendations to the Board for proper actions; 
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Act. 
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SEC. 9. Capifal. - The Authority shall have an authorized capital stock 
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b) The value of such real estate owned and/or ceded by the Cebu 
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City 
Government, 
Cebu 
Provincial 
Government, 
other 
political 
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c) Government contributions in such amount as may be deemed 
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an appropriate initial balance. 
Such initial amount approved by the 
9 To perform such other duties as the Board may delegate or 
assign, and such acts as may be necessary and proper to implement this 
equal to and consisting of: 
a) The value of fixed assets acquired for the establishment of the 
Central Office and such other properties, movable and immovable, as may 
be ceded from agencies and institutions integrated or merged with or 
which come under the direct management of the Authority as valued on 
the date of the effectivtity of this Act; 
subdivisions, and other government instrumentalities and agencies. 
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President of the Philippines which shall be more or less equivalent to six 
(6) months working capital requirement of the Authority, is hereby 
authorized to be appropriated in the General Appropriation’s Act of the 
year following its enactment into law. 
Thereafter, the government contribution to the capital of the 
Authority, shall be provided for in the General Appropriation’s Act. 
SEC. I O .  
Auditor. . 
The Commission on Audit shall appoint a 
representative who shall be the auditor of the Authority, together with the 
necessary personnel to assist said representative in the performance of his 
duties. The number and salaries of the auditor and said personnel shall be 
determined by the Chairman of the Commission on Audit, subject to the rules 
and regulations of the Commission on Audit. 
The auditor shall, as soon as possible, but not later than three (3) months 
after the accounts have been submitted for audit, send an annual report to the 
Board. The auditor may also submit such periodic or special reports as the 
Board may deem necessary. 
SEC. 11. Annual Report, - The Board shall submit to the President of 
the Philippines through the Secretary of the Department of Environment and 
Natural Resources and to the both Houses of the Congress of the Philippines, 
together with the audit report on the relevant accounts, an annual report 
generally dealing with the activities and operations of the Authority. 
SEC. 12. Applicability of Civil Sewice Laws. = The Authority and its 
officials and employees shall be subject to Civil Service law and its rules and 
regulations. 
SEC. 13. Borrowing Power, - The Authority may, in accordance with 
Section 21, Article XI1 of the Constitution and other existing laws, rules and 
regulations on local or foreign borrowing, raise funds, either from local or 
international sources by way of loans, credit or securities, and other borrowing 
instruments with the power to create pledges, mortgages and other voluntary 
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loans or encumbrances on any of its assets or properties, subject to the prior 
approval of the President of the Philippines. 
All loans contracted by the Authority under this section, together with all 
interests and others sums payable in respect thereof, shall constitute a charge 
upon all the revenues and assets of the Authority and shall rank equally with one 
another, but shall have priority over any other claim or charge on the revenue 
and assets of the Authority: Provided, That this provision shall not be construed 
as a prohibition or restriction on the power of the Authority to create pledges, 
mortgages and other voluntary liens or encumbrances on any assets or property 
of the Authority. 
The payment of the loans or other indebtedness of the Authority shall be 
guaranteed by the National Government subject to the approval of the President 
of the Philippines. 
SEC. 14. Tax Exemptions. - The Authority shall be exempt from realty 
taxes imposed by the National Government or any of its political subdivisions, 
agencies and instrumentalities: Provided, That no tax exemption herein granted 
shall extend to any subsidiary which may be organized by the Authority. 
SEC. 15. Transfer of Existing Facilities and Intangible Assets. - All 
existing land, building and other properties, movable and immovable, belonging 
to or presently administered by MCWD and all assets, powers, rights, interests 
and privileges relating to water sourcing and supply, including all equipment 
which are necessary for their operations, likewise the authority and prerogatives 
of LWUA, WRB and Watershed Management Agency pertaining and relevant to 
the development of water resources and supply in Cebu Province and Metro 
Cebu including a share of the annual appropriations for the purposes and 
projects of these entities intended for Cebu Province and Metro Cebu with all 
their pertinent records and personnel of their respective branch offices are 
hereby transferred to the Authority: Provided, however, That the operation and 
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services of MCWD be maintained under a management team subject to the 
Authority. 
SEC. 16. Projects in Progress. - All planned and on-going projects 
related to water sourcing development and supply of MCWD as well as those of 
LWUA intended for the Cebu Province and Watershed Rehabilitation and 
Restoration Projects of these and other government agencies shall be 
administered and undertaken by the Authority. 
SEC. 17. Transfer of Liabilities and Debts. - Upon the transfer to and 
acceptance by the Authority of the existing physical facilities, intangible assets 
and completed projects referred to in the preceding sections, all debts, liabilities, 
and obligations of government agencies or entities concerned with respect to 
such physical facilities, tangible assets and completed projects within Metro 
Cebu and Province shall likewise be assumed by the Authority. 
SEC. 18. Abolition or Taking Over of Entities. - The PAWS and 
provincial watershed units of PENRO, CENRO, LWUA Provincial Office and such 
other agencies having supervision and control of the watershed rehabilitation and 
restoration are hereby abolished. 
The powers, functions, responsibilities of 
MCWD taken over by the Authority, as well as the determination of personnel are 
to be retained: Provided, That all officials and employees whose service are 
terminated shall, if not eligible for retirement be given gratuities equivalent to one 
(I) 
month salary for every year of continuous satisfactory service on the basis of 
the highest salary received in addition to other benefits accorded by them by 
existing laws. 
SEC. 19. Repealing Clause. . All laws, executive orders, letters of 
instruction, rules and regulations, or provisions thereof which are inconsistent 
with the provisions of this Act are hereby repealed, amended or modified 
accordingly. 
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SEC. 20. Separability Clause. - If any portion hereof shall be held 
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invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the 
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other provisions which shall remain in full force and effect. 
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SEC. 21. Eflecfivify, - This Act shall take effect fifteen (15) days after 
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its publication in at least two (2) national newspaper of general circulation. 
Approved, 
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