Repub+ic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
House Bill No.
8660
Introduced by Hon. Atty. Margarita lgnacia a. Nograles
EXPLANATORY NOTE
7                    The  state is directly responsible for providing water security to all the citizens
8       and   inhabitants   of  its   territory.   Water   nurtures   and   sustains   life.   Civil   societies
9      worldwide  can  neither  endure  nor  survive  without  property  managing  their  water
0      resources for the effective use of their people.
2                     The  philippines  is  a  water-rich  country.  According  to  the world  Bank  (2015),
3       the annual available water volume per capita  in the country is twice that of Asia and
4       six  times  the  global  scarcity  threshold.  Yet,  many  of  our  people  are  deprived  of
5       efficient   access   to   affordable,   safe,   and   reliable   potable   water  and   to   proper
6      sanitation  services.  This  is  because the governance and  maintenance of our water
7      resources   remains  fragmented   and   uncoordinated.   To  date,   there   are  over  30
8      government agencies at both  the  national and tocaJ  teveJs  inpJementing  separate
9       and  disharmonized  policies,   plans,  and   programs  to  develop  and  operate  water
0      facttities  and  related  infrastructure  for  various  uses,  and  to  regulate  water  use,
1       monitor water-related financial and technical parameters, and set water tariffs.
To this end,  this  bill  proposes to create the  Department of Water to serve as
4       the   primary   agency   responsible   for   national   policy-making,    coordination,    and
5      management of all the water resources in the philippines. Under this Department, all
6       government   agencies   related   to   water   shall   be   rationalized.   Integrated   Water
7      Resources  Management (lwRM) shat+  be  adopted  as  the  strategie  framewock  for
8       water management  policy-making  and  planning  in  the  country.  IWRM  promotes  the
9      coordinated development and management of water, land, and related resources in
0       order  to  maximize  economic  and  social  welfare  in  an  equitable  manner  without
1       compromising  the  sustainability  of  vital  ecosystems  and  the  environment.  This  bill
2      also proposes to create an independent water Regulatory commission to ensure the
3       effective  and  adequate  delivery  of  water  and  sanitation  services  throughout  the
4      country under a  credible,  transparent,  and accountable regulatory framework.  This
5       Commission shall always  protect the consumer welfare and  reject abusive practices
6      in the water industry. Finally, this bill seeks to create the Nafronat water corporation
7       as the corporate arm of the  Department of water to institutionalize the collaboration
8      between  the  government  and  the   private  sector  for  the  provision  of  accessible,
9       reliable,  and affordable water supply,  distribution,  and  sanitation services throughout


i      the country via established arrangements such as Joint ventures and public-Private
2       Partnerships (PPPs).
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4                     In view of the foregoing,  I, therefore, seek the urgent approval of this bill,
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Congw. Arty, Marg
y. Migs" 8. Nograles


Reptlb+ic Of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
House Bill No.
8660
Introduced by Hon. Atty. Margarita lgnacia 8. Nograles
AN ACT
TO ENSURE WATER SECURITY BY ORDAINING INSTITUTIONAL AND REGULATORY
REFORMS IN WATER THROUGH THE CREATION OF THE DEPARTMENT OF WATER,
THE WATER REGULATORy cOMMissioN, AND THE NATroNAL WATER
CORPORATION, AND FOR OTHER PURPOSES
Be  it enacted  by the  Senate  and  House of Representatives of the  Philippines in Congress
assembled-.
CHAPTER I
TITLE AID POLICY
SECTION  1.  Short  I/.t/e. -This Act shall  be  known  as "The Water Security Act of
2019.„
SEC. 2. Dec/araljon of Po/I.ey and Ob/-ec fives. - ]t is hereby declared the policy of
the State to ensure the provision Of safe, adequate, affordable, and sustainable water supply
and  sanitation  services,  while  maintaining  the  protection,  preservation,  and  revival  of the
quality   of  the   county's   water   resources   and   attaining   ecological   balance   through   the
application of the Integrated Water Resources Management (lwRM) system.
In pursuit of this pohoy, this Act shalt have the following objectives:
a)          To  ensure  and  accelerate  the  total  access  to  water  supply  and  sanitation
services in the entire country;
b)           To ensure the quality, reliability, security, and affordability of water supply and
sanitation services;
c)          To provide for an organizedt efficient and systematic process for discoveringt
harnessing, conveying, distributing, treating and recycling water throughout the country;
d)          To  ensure transparent and  reasonable  prices  of water supply and  sanitation
services  in  a  regime  of free  and  fair  competition  and  full  public  accountability  to  achieve
greater  operatiena+  and  economie  effieiency  and  enhance  the  competitiveness  Of  the
Philippines in the global market;


I                   e)         To pfroritize and seek the immediate attainment of un+versal aeeess to safe,
2       adequate,  affordable,  and  sustainable  water supply and  sanitation  services  in  the  country,
3       and  adopt all  necessary  measures  directed  towards the  realization  of the  human  right to
4       water;
5                    f)           To accelerate the expansion, improvement,  and uttimately,  efficient provision
6       of  water  supply  systems  and  sanitation  services  for  the   entire  countryt  in  a  manner
7       consistent with the  protection,  preservation,  and  revival of the quality of the country's water
8       resources and in accordance with lwRM;
9                     g)          To encourage and enable private sector pahicipation in the continued growth
10      and  development  Of  water  origination,  conveyance,  distribution,  supply,  treatment  and
11        sanitation services;
12                     h)           To  create  a  business  and  regulatory  environment that  is  level,  transparent,
13       and  conducive for public and  private domestic and foreign  investments in water supply and
14       sanitation servfoes;
15                      i)            To  provide  incentives  and  support  to  encourage  investments,  and  take  all
16       steps   necessary  for  the   provision   of  affordable  access  to  water  supply  and   sanitation
17       services in unserved and underserved areas;
18                    j)           To ensure fair, just, and reasonable tariffs, rates, and other charges for water
19       supplyand sanitation services;
20                     k)           To  protect  the  legal  and  other  interests  of consumers  of water  supply  and
21        sanitation services rendered by licensees;
22                     1)            To establish an administrative process for economic regulation that is stable,
23      transparent, and fair, g+ving due emphasis to techhicaJ, legal, envirormental, econorfuc, and
24       financial  considerations and with  due regard to the observance of due process at all times;
25       and
26                     in)         To establish  a  strong  and  independent  economic  regulatory  body to  ensure
27      consumer  protection,  promote  good  business  practises  and  competition  among  serviee
28       providers,   and   full   public   accountability   to   achieve   greater   operational   and   economic
29        efficiency.
30                     SEC. 3. Scape. -This Act shall provide a framework to ensure water security in the
31       country through the creation of the Department of water, the water Regulatory commission,
32       and the National water corporation,
33                     SEC. 4. Deri.n/.1/`on of Te/ms. -The following terms as used  in this Act are defined
34       as follows:
35                      a)          Bu/k water swpp//.er shall  mean  any entity,  natural or juridical, whether public
36      or private, supplying or intending to supply large quantities of raw or treated water to buyers
37       who   will   use   it  for  their  own   consumption,   such   as   industrial   companies,   or  for  retail


1       distribution  to  consumers,  such  as  a  wafer  distrfet  or  a  stlbdivisien  managing  its  own
2        distribution network.
3                     b)          Capf/.ve  marker  shall  mean  end-users  who  do  not  have  the  choice  of  a
4       provider of water supply and sanitation services, as may be determined by the commission
5       jTi accordance with this Act.
6                    c)          Commi.ssi.on shall mean the water Regulatory commission created under this
7        Act.
8                     d)          Concess/.on confracf shall  mean the award  by the government to a qualified
9       private  entity  of  the   responsibility  for  financfng,   operating,   expanding,   maintaining,   and
10      managing specific government-owned assets.
11                      e)          Oeparfmenf shall mean the Department of water created under this Act,
12                    i)           Department of Environment and  Natural  Resouroes  (DENR)  shall mean the
13       Department of Environment and  Natural  Resources  under Executive  order No.  292  (1987)
14      or the Administrative code of 1987, as amended.
15                     g)          Deparfmenf  of Hea/th  /DOH/  shall  mean  the  Department  of  Health  under
16       Executive order No. 292 (1987) orthe Administrative code of 1987, as amended.
17                     tr)          Department   of   Public   Works   and   Hkyhways   (DPWH)   shall   mean   the
18       Department of Public Works  arid  Highways under Executive  Order No.  292  (1987) or the
19       Administrative code of 1987, as amended.
20                      i)            D/.sir/.bwf/.on   or  sewerage   I/i/'//.fy  shall   mean   any  entity,   whether   public   or
21        private,  which  has an exclusive license to operate a water distribution or sewerage pipeline
22       system in accordance with this Act.
23                   j)           End-{Aser shall mean any person, whether natural or juridieal, requiring water
24       supply and sanitation services for its own use.
25                     k)           F/ood cor}£ro/ shall  mean the  methods,  acts,  and  protocols to be observed  in
26       order to  prevent and  reduce the detrimental  and  catastrophic effects of flood waters,  which
27      include sediment-laden or turbid floes, and hyper-concentrated flows or debris flows.
28                     I)            F/ood and  drought r7.ck management shall  mean  such  acts  of defining  and
29       determining the appropriate  methods,  acts,  and  protocols aimed to prevent and  reduce the
30       risk of incurring  loss  of both  life  and  property  due  to flood  waters  and  drought.  Flood  and
31       drought   risk   management   consists   of   a   eycte   of   prevention,   mitigation,   adaptation,
32      preparedness, early warning+ and response and recovery. The elements include integrating
33       land-use  planning,  coastal  zone  management  into  water  management,  adopting  a  holistic
34       approach   so   that   it   is   part  of  a   wider  risk  or  multi-hazard   management  (earthquake,
35       landslides,  storm  surge,  etc.),  managing  risk and  uncertainty as a whole to encompass  not
36      only hydrologieal uncertainties but also social, economic, and pditica+ uncertainties in view
37       of human behavior and cultural dimensions.


1                   in)        Franchf.se  area  shall  mean  a  geographieal  area  exclusively  assigned  or
2       granted to a distribution or sewerage utility for water supply and sanitation services.
3                      n)           Ger}der equa//.fy shall  mean  the  principle  asserting  the  equality  of  men  and
4       women  and  their  right  to  enjoy  equal  conditions  realizing  their  full   human   potentials  to
5       contribute to and benefit from the results of development, and wth the state recognizing that
6       all human beings are free and equal in dignity and rights`
7                      o)           /nrrasfnL/cfure  and  pwb//.c  wonks  shall  mean  only  wholly  or  primarily  water-
8       related  projects and shall not be considered to incorporate projects that would  not otherwise
9       fall within the purview of this Act.
LO                    p)          Integrated water Resoulees Management (!WRM) shal+ mean a s:ys;tematie,
11        collaborative,  and  multi-stakeholder process,  which  promotes the coordinated  development
12       and  management  of water,  land,  and  related  resources  within  geophysical  boundaries  in
13       order  to  maximize  the  resultant  economic  and  social  welfare  in  an  equitable  manner  and
14      without compromising the sustainability of v+tat ecosystems and the environment.
15                     q)          Leve/ of water supp/y servi`ce shall mean as follows:
16                                     i.            Level I (point source) -a protected well or a developed spring with an
17                      outlet but without any distribution system. A Level  1  facility usually serves an average
18                     of 15 households.  This is generally adaptable for rural and upland areas where the
19                     houses are thinly scattered.
20                                    ii.             Level   11   (communal   faucet   system   or   stand   posts)   -   a   system
21                     composed of a water source, a reservoir, a piped distribution network, and communal
22                      faucets. Usual]y, one faucet serves four to six households in a Level ll facility. This is
23                   general+y  suitable  for  rural  and  urban  fringe  areas  where  houses  are  clustered
24                      densely to justify a simple piped system.
25                                    iii.             Level   Ill  (waterworks  system  or  individual   house  connections)  -a
26                     system with a water source, a  reservoir,  a  piped distribution  network,  and  household
2 7                   taps. This is generally suitable for densely populated urban areas.
28                      r)           i/.cense shall mean the water supply and sanitation services operating license
29       that the commission is authorized to grant and issue to service providers under this Act.
30                     s)           Licensee  shall  mean  the  service  provider  to  whom  a  license  is  granted  or
31       issued bythe commission.
32                    t)           Loco/ Govemmenf unj.f /LGuj shall mean a territorial and political subdivision
33        of the philippines, which may be a province, city,  municipality, or barangay.
34                     u)          Local  water  utilities  Administration  (LWUA)  shall  mean  the  Local  water
35       Utilities Administration under presidential Decree No.198, as amended.
36                  v)         Mefrope//farl  waferwocks  and  sewerage  system  /MWSS)  shall  mean  the
37       Metropolitan waterworks and sewerage system under Republic Act No. 6234, as amended.


I                    wl         National  Disaster  Risk  Reduction  Marlagement  Council  {NDRRMC)  shat+
2       mean  the  National  Disaster  Risk  Reduction  Management  Council  under  Republic Act  No.
3        10121  orthe philippine DisasterRisk Reduction and ManagementActof2010.
4                     x)           National   Economic   and   Development   Authority   (NEDA)   she+A   mean  the
5       National Economic Development Authority under presidential Decree No.107, as amended.
6                     y)          National    Water    Corporation    (NWC)    shall    mean    the    National    Warfer
7       Corporation created underthisAct.
8                     z)          Ivafi.ona/  Wafer  Resouroes  Board  /rvwRB/  shall  mean  the  National  water
9       Resources Board under presidential Decree No. 424, as amended.
10                   aa)       Phjlippjne      Atmospheric,      Geophysical      and      Astronomical      Services
11        Adm/'n/.sfraf/.on    /PAGASA/    shall    mean    the    Philippine    Atmospheric,    Geophysical    and
12       Astronomical   Services   under   the   Department   of   Science   and   Technology   (DOST)   in
13        Executive order No. 292 (1987) orthe Administrative code of 1987, as amended.
14                    bb)        Philippine   Competition   Cofrrmission   (PCC)   shat+   mean   the   Phihiiptyine
15        Competition commission under Republic Act No.10667 or the philippine competition Act.
16                     cc)        Philippine  Development  plan  (PDP)  shall  mean  the  cour\try's  med.ium-term
17       development plan published by NEDA.
18                      dd)        Ph7./;.pp;.ne   Economi.c   Zone   Authorrib7   (PEZA/   shalt   mean   the   Philippine
19       Economic zone Authority under Republic Act No. 7916 or the special Economic zone Act of
20       1995, as amended.
21                     ee)        Pub/t.a-Prt.vats parfnersh;.p /PPP/ shall mean public-Private partnership under
22       RepublicActNo. 6957, as amended by RepublicActNo. 7718.
23                   ff)         Regu/afory unf`f /RU) shall mean the regulatory offiee under the commission
24       authorized  to  issue   licenses  for  the  operation  of  water  supply  and  sanitation  services;
25       provide,  review,  determine,  fix,  and  approve  water  and  sanitation  tariffs,  rates,  and  other
26       charges that licensees may impose; and exercise such other powers and functions under the
27        law.
28                      gg)        R/.ver    Bas/.n     Organ/.zaf/.on     /RBOJ     shall     mean     the     multi-stakeholder
29       organization that plans, coordinates, and monitors activities within a river basin cluster.
30                     hh)        San/tat/.on shall mean sewage, sewerage, and septage management.
31                     ii)           Sed/.mer}f  mar)agemenf  shalt  mean  the  control  of  sediment  erosion  and
32       deposition  jn  riverst  reservoirs,  and  coastal  zones  though  nQn-structural  and  structural
33       measures and control works.
34                     jj)           Sepfage   management   shall    mean   the    provision    of   proper   collection,
35       treatment, and disposal of septage.
36                   kk)       Sepfage  shall   mean   sludge   produced   on   individual  onsite   wastewater
37       disposal systems, principally septic tanks and cesspools.


1                    11)          Servfoe area shat+ mean the area covered by the water supply and sanitaton
2       services license.
3                      mm)     SeM.ce prov/.der shall mean any entity,  natural of juridical, whether private or
4       public,  providing or intending to  provide water supply and sanitation services,  including  bulk
5      water supplier,  sewerage,  and  septage  treatment  and  disposal  services  for  domestic  or
6       residential, industrial or commercial use, in any service area.
7                      nn)        Sevrage shall  mean  water-carried  waste  in  solution  or suspension,  including
8       domestic  waste   (waste   products  of  normal   living),   commercial  waste,   industrial  waste,
9       agricultural  waste,  and  surface  runoff  conveyed  by  a  sewerage  system  for  treatment  or
10      disposal.  For purposes Of this Act, the definjtien of septage shad be included in the use of
11        sewage.
12                      oo)        Sewershall mean  pipe or such other works or structures, which are built and
13       constructed to treat, carry, transport, and dispose sewage.
14                   pp)       Sewerage shall mean any system or netwot.k of sanitary pipelines,  ditches,
15        channels  or  conduits,   including  pumping  stations,   lift  stations  and  force   mains,   service
16       connections,   including   other  constructions,   devices,   or  appliances   appurtenant  thereof,
17       which  includes  the  collection.  sanitary  piping  transport,  pumping,  and  treatment  of water-
18       bone human or animal waste removed from residences, buildings, institutions, industrial and
19       commercial establishments to point of sewage treatment plant disposal.
20                     qq)        Soc/.a/   /.nc/us/'on   shall    mean   the    process   of   improving   the   terms   for
21        disadvantaged individuals and groups to take part in society.
22                     rr)          Subic   Bay   Metropolitan   Authority   (SBMA)   shall   mean   the   Sub.ic   Bay
23      Metropolitan   Authorfty   under   Republie   Act   No.   7227   or  the   Bases   Conversion  and
24       DevelopmentActof 1992, asamended.
25                     ss)        Susfa/.nab/e   Deve/apmenf  Goa/s  /SDGs/  shall   mean  the   United   Nation's
26       Sustainable Development Goals program.
27                    tt)          TarJ.ff shall  mean  such  amount that may be charrged by licensees of water
28       supply  and   sanitation   services   for  their   services   based   on   principles,   standards,   and
29       guidelines established bythe commission.
30                     uu)        Tourism Infrastructure and Enterprise zone Authorfty (TIEZA) shall mear\ the
31       Tourism  ]nfrastTucture  and  Enterprise Zone Authority under Republic Act No.  9593  or the
32       Tourism Act of 2009.
33                    w)        Water demand  management  shall  mean  any  method  -whether  technical,
34       economic,   administrative,  financial,  or  social  -  that  will  accomplish  one  or  more  of  the
35       following things:  (i.) reduce the quantity or quality of water required  to  accomplish  a specific
36      task,  (ii.)  adjust  the  nature  of  the  task  or  the  way  it  is  undertaken  so  that  it  can  be
37       accomplished  with  less  water or with  lower quality water,  (iii.)  reduce the  loss  in  quantity or


1       quality of water as +t flows from source through use to disposal, {iv.) shift the tin+ng of use
2       from peak to off-peak periods, and (v.) increase the ability of the water system to continue to
3       serve society during times when water is in short supply.
4                     ww)       Water d/.sfr/.cts shall mean the government-owned and controlled corporations
5       organized  under Presidential  Decree  No.  t98,  as  amended,  created primarity to  acquire,
6       install,  operate, maintain, and  improve water supply and distribution systems for domestic.
7       industrial,  and  municipal  uses of residents;  and  provide,  maintain,  and  operate waste water
8       collection, treatment, and disposal facilities within the boundaries of the district.
9                    xx)        Water Resources Beg;`ona/ Offce  rwRRoj shalf mean the field offroe of the
10      Department to be established in accordance with the identified water resources regions in
11        thecountry.
12                     yy)         Water supp/y and  san;.fafi.on  servi.ces  shall  mean  any  activity  comprising  of
13       water supply,  including  biilk supplies,  supplies to subdMsions,  and other service providers,
14      or sewage, sewerage, and septage treatmettt and disposal services, or both.
15                     zz)        Water supp/y and san/.far/.on serv/.ces code shall mean a compilation of rules
16       and  regulations  governing  water  supply  and  sanitation  services,  which  includes,  among
17       others, the standards for service and performance.
18
19
CHAPTER 11
ORGANIZATION OF THE WATER INDUSTRY
22                    SEC.5.  Organjzaljon.  -  To  create  a  favorable  environment  for  the  attainment  of
23      complete  coverage  Of  water  supply  and  sanitation  serviees  for  the  whole  country  at
24       reasonable  rates  in  an  orderiy,  rational,  efficient,  and  vigorous  manner,  the  water  industry
25       shall be organized into the following sectors:
26                     a)          Water source/generation;
27                   b)         Water and sewage treatment; and
28                      c)           Water distribution/sewerage pipeline (conveyance).
29                     All  three  sectors of the  water industry are  public services  and  businesses  affected
30       with  public  interest  and  shall  therefore  be  supervised  by  the  Government  through     the
31       Department   of   Water,   the   Water   Regulatory   Commission,    and   the   National   Water
32       Corporation  (created  hereunder),  and  therefore  open  tQ  private  sector  participation  under
33        well-defined  guidelines;   Provided,  that all three  sectors shall  be considered as  public  utility
34       operations,  and  therefore all assets under these  sectors shall  be   considered  properties of
35       the  State,  to  be  utilized  solely  by  Government  or  contracted  to  private  parties  either  as
36      operations and maintenance concessions  for a fixed  term,  stryiect to extension;  or Joint
37       Venture projects, or as public-Private partnerships.


I                    The  Department  of  Water  shat+  have  full  authoffty  over  a#  three  water  industry
2       sectors  to  harness,  store,  convey/transport,  distribute,  supply,  treat  and  recycle  all  water
3        resources inthe philippines.
4                   SEC.6.  Wafer Sowrce/Generafi.on  Sector.  -The  water  source/generation  sector,
5       jnctuding bulk water supply for various uses, shalt be competitive and open to stand-atone
6       Government development and operations or through Joint venture partnerships and public-
7       Private partnerships, through its corporate arm, the National water corporation.
8                     Every  water  source/generation  entity  shall  secure  from  the  Commission  a  license
9       pursuanttothisAct.
10                   Sates of water by the water source/generation sector shall be value-added tax zero-
ll        rated.
12                   SEC.7.    Water and sewage Treatment sector. -The water and sewage treatment
13       sector   shall   be   competitive   and   open   to   stand-alone   Government   development   and
14      operations or through Joint venttire arrangements and public-Private partnerships, through
15       the National watercorporation.
16                     Every  water  and/or  sewage  treatment  plant  shall  secure  from  the  Commission  a
17        license pursuantto thisAct.
18                    Sales  Of treated water by the water andfor sewage treatment  plant sector sha[r be
19       value-added tax zero-rated.
20                   SEC.8.   Water Distribution/Sewage pipeline system sector. -The d.istr.ibulion of
21        water to all  users,  including end-users,  or the collection of sewage from all  users through a
22       pipeline  system  shall  be  a  regulated  common  water carrier  requiring  a  franchise  from  the
23      Department and a tieense from the commission pursuant to this Act. Distribution of water to
24       all  users,  including  end-users,  or  collection  of  sewage  from  all  users  through  a   pipeline
25       system   owned   entirely   by  government  but   may   be   developed   by  the   National   Water
26       Corporation  either as  stand-alone  projects  or through concession  contracts  undertaken  by
27      private  distribution  or  sewerage  utilities  through  Joint  Venture  Arrangements  or  through
28        Public-Private partnerships.
29                   SEC.9.   Function   of  Distribution   or   Sewerage   utilities.   ~  Under  ire  Water
30       Supply/Waste Treatment contract, a distribution or sewerage utility shall  have the obligation
31       to provide distribution  or sewerage services and  connections to its pipe fine system for any
32       user  within  its  franchise  area  consistent  with  the  Water  Supply  and  Sanitation  Services
33       Code.  Any  entity  engaged  therein  shall  provide  open  and  nonrdiscriminatory  access  to  its
34       distribution orsewerage system to all users.
35                     Under its water supplyITreatment contract, any distribution or sewerage utility shall
36      be  entitled  to  impose  and  collect  tariffs,  rates,  and  other  charges  from  sueh  users  as
37       approved and licensed bythe commission.


I                    And  finally,  under  its  Water  Supply/Waste  Tfeatfnent  Contract,  a  distribution  of
2       sewerage utility shall  have the obligation to supply water or collect sewage in the  least cost
3       manner to  its  captive  market.  Distribution  or sewerage  utilities  shall  prepare  and  submit to
4       the Department,  through their respective water Resources  Regional  offices (WRRO), their
5       amual distribution development plans. Fatfure to submit a feasible and credible plan and to
6       implement the  same,  shall  serve  as  grounds  for the  imposition  of  appropriate  sanctions.
7       fines,orpenalties.
8                       Distribution  or sewerage utilities shall  provide  universal  service within their franchise
9       area, over a reasonable time from the requirement thereof, including unviable areas, as part
10      of their social obtjgations, in a manner that shalt sustain the econorfuc vfabi+ity Of the utility.
11        To  this  end,  distribution  or sewerage  utilities  shall  submit to  the  Department their  plans  for
12       serving such areas as  part of their distribution or sewerage development plans.  Franchised
13       areas  which  a   distribution  or  sewerage   utility  cannot  or  does   not  find  viable   may  be
14      transferred to anotherdistributien or sewerage utitfty, if any is avaltabte, who wit+ provide the
15       service.  In  case  where  franchise  holders  fail  and  refuse  to  service  any  area  within  their
16       franchise territory and allowed  another utility to service the  same, then the status quo shall
17       berespected.
18                   SEC.10.  raffls, Rates, and Other Cf]a/ges. -Tariffs, rates, and other charges for
19       water supply and  sanitation services  shall  be  filed with and approved  by the  Commission.
20       Such  rates  charged  by service  providers shall  be  subject to  regulation  by the  Commission
21        based on the principle of full recovery of prudent and reasonable economic costs incurred, or
22       such other principles that wil] promote efficiency as may be determined by the commission.
23                   SEC.11. Related Btlsi-messes. -Service providers for water supply and sanitation
24       services   may,   directly  or  indirectly,   engage   in  any  related   business   undertaking   which
25        maximizes the utilization of their assets;  Provided, That a  portion of the  net income derived
26       from  such  undertaking  utilizing  assets  which  form  part  of the  rate  base  shall  be  used  to
27      reduce their tariffs, rates, and other charges as determined by the Commission; Provided,
28       Further, That such portion of net income used to reduce their tariffs, rates, and other charges
29       shall  not  exceed  fifty  percent  (50%)  of  the  net  income  derived  from  such  undertaking;
30       Provided, Finally, That separate accounts are maintained for each business.
31                    SEC.12. MJ`ssi.onary servJ'ces. -The Department of water, upon taking a complete
32      inventory of all possible sources of water nationwidet shall identify those local districts in the
33       country  with   little  or  no  access  to  regular  and   systematic  water  supply  and   sanitation
34       services in the foreseeable future. Contiguous unserved districts/areas shall be bundled into
35       Special water lncentivized  Missionary (SWIM) Zones and  auctioned  off to qualified  parties
36      at  specia+  tariff  rates  and  other  incentives  to  be  determined  and  established  by  the
37       Commission, as recommended by the National water corporation.


1                   SEC.13. Sfrucfwra/ and qperatfofial Reforms. -To achieve eeononrfes of scale in
2        utility operations,  distribution  or sewerage  utilities  may,  after due  notice and  public hearing,
3       pursue structural  and operational  reforms,  such as,  but not limited to, joint actions  between
4       or among the distribution  or sewerage  utilities,  subject to the  guidelines  issued  pursuant to
5       this  Act.   Sucti  joint  actions  shaft   result  in  inproved  effictencies,   retiabitity  of  service,
6       reduction of costs, and compliance to the performance standards pursuant to this ACL
7                       Distribution   or   sewerage   utilities   shall   submit   to   the   Commission,   through   the
8       National water corporation, a statement of their compliance with the technical specifications
9       prescribed   in   the  Water   Supply   and   Sanitation   Services   Code   and   the   performance
10      standards  prescribed  by  the  Commission.  Distribution or sewerage  utilities whieh do  not
11        comply with any of the  prescribed  technical  specifications and  performance standards shall
12       submit to the commission, through the National water corporation, a  plan to comply, within
13       three  years,  with  said  prescribed  technical  specifications  and  performance  standards.  The
14      Commission shaft, within 60 days upon receipt Of such plan, evaluate the same and notify
15        the proponentof its decision.
16
17
CHAITEFt 111
DEPAITMENT OF WATER
20                    SEC.  14.  Deparfmenf  of  Wafer.  -  There  is  hereby  created  and  established  the
21       Department of water,  hereinafter referred to as the Department. The Department shall have
22       the  organizational  structure,   powers,  and  functions   needed  to   perform   its   mandate  as
23       provjdedinthisAct.
24                     SEC.  15.    Mandate  of the  Deparfmenf.  -  The  Department  shall  be  the  primary
25       agency  responsible  for the  comprehensive  application  of the  Integrated  Water  Resources
26       Management system (lwRM) for the philippines.  It shall exercise such powers and functions
27      needed to review, revise, harmonize, and +ntegrate potieies and regtltatiens for the discovery
28       and  conservation  of water  resources  nationwide  and  the  effective  management  of  water
29       supply,    sanitation,    irrigation,    hydropower,    flood    control    and    flood    and    drought    risk
30       management,  and storm water and urban drainage. The Department shall be guided  by the
31       lwRM  framework,  take  climate  risks  into  account,   arid  erisure  sustainabitity  of  natural
32      ecosystem  functions  and  services,  ln  managing  water  resources,  the  Department install
33       water   infrastructure   to   improve   water   conservation,   increase   system   efficiencies,   and
34       optimize  the  use  of  all  freshwater  in  the  country,   including  groundwater,  surface  water,
35       rainwater,  run-offs,  floods,  storm  water,  urban  drainage,  and  treated  wastewater,  to  meet
36      various needs.
37                      Consistent with its mandate, the Department shall have the following objectives:


I                   a)         To phoritize and seek the inrnediate attainfnent of universal aeeess to safe,
2       adequate,  affordable,  and  sustainable water supply and  improved  sanitation services for all
3       inhabitants  of  the  country  in  a  manner  consistent  with  the  protection,  preservation,  and
4       revival of the quality of the country's water resources, and to adopt all needed measures to
5       advance  the  rigtit  of the  people  to  a  balanced  and  heathfut  ecotogy in  accord  witti  the
6       rhythm and harmony of nature;
7                      b)           To  strengthen  and  coordinate  lwRM  planning  and  policy-making  to  ensure
8       sustainable and fair allocation and  efficient  use of water resources  among  competing  uses
9       and  users,  including  but  not  limited  to  domestic  and  municipal  use,  agriculture  (irrigation,
10      farming, and fisheries), power generation, commercial, and industrial use;
11                      c)           To ensure that lwRM is strongly coordinated with land use and cover, coastal
12       zone  and  multi-hazard  planning  and  management,  including  flood  control  and  flood  and
13        drought risk management;
14                   d)         To promote state participation in information sharing and education around
15       best practices  in  the  international  movement to achieve universal access to safe water and
16       improved sanitation and the integration of water, energy, food security and environment;
17                      e)           To    strengthen    and    coordinate    policy-making    and    planning    for    flood
18       management,  integrated witti storm water and urban  drainage and appropriate retention or
19       retarding   basins   in  order  to   plan   against,  prevent,  and   minimize   the   detrimental  and
20       catastrophic effects offlooding;
21                      f)            To encourage and enable private sector participation  in the continued growth
22       and development of the water sector, particularly in the origination, conveyance, distribution,
2 3      treatment and sanitation of water assets nationwide;
24                     g)          To  promote  and  adopt  water  demand  management  as  a  national  policy  to
25       ensure that water is optimized, that water efficiency and conservation become a way of life,
26       that the recycling and reuse of water and treated wastewater are widely practiced, that water
27      fs  property  priced  to  encourage  efficient use  and conservation  and  that  rainwater,  flood
28       waters, and run-offs are captured and harvested, stored, and treated for future use;
29                      h)           To ensure that the  planning and  design  of water infrastructure considers the
30       highest  efficiency  and  most  appropriate  quality,  in  accordance  with  national  development
31        objectives;and
32                    i)           To   ensure   that  gender  equality,   social   inclusion7   climate   resiliency  and
33        disaster risk reduction are integrated into any lwRM planning,  policy-making, and the design
34       and construction of water infrastructure;
35                     j)            To ensure and oversee the effective implementation of all water-related laws,
36      including Presidentie+ Decree No.1067 or the Water Code Of the Philippines and Repub+ic
37       ActNo. 9275orthe philippinecleanwaterActof2004.


I                  SEC.16. Poners ar}d funeffons of fAe Dapaflmenf. -The Department shaft have
2       the following powers and functions:
3        I.             Policy-making and planning
4                    a)          Ensure   that   lwRM   is   adopted   as   the   strategic   framework   for   water
5       management polity-making and planning in the country and coordinate the imptementation,
6       promotion, revision, and enhancementof [WRM plans;
7                      b)           Provide  policy  direction,  strategies,  and  targets  in   coordination  with  other
8       relevant  entities  to  meet  the  goals  and  objectives  for  water  supply  and  sanitation,  water
9       quaTfty,  irrigation,  hydropower,  flood  control  and  flood  and  drought  risk  management,  and
10      stormwater and urban drainage. Sueh pdicies shall, among other things, integrate the issues
11        of water and sanitation, food security, energy, environment, and flood control consistent with
12        lwRM;
13                     c)           Formulate   and   develop   policies   to   promote   universal   access   to   safe,
14      adequate,  affordabte, and sustainable water supply and sahitatfon sewices for all citizens
15        and inhabitants of the philippines;
16                      d)           Formulate  and  promulgate  rules  and  regulations  for  the  development  and
17       optimum  utilization  of  water  resources  and  its  administration  and  management,  including
18       coherent water protocols and operating rule§ for atl existing and future water infrastructure,
19      and the imposition of fees or charges as may be deemed necessary by the Department for
20       water resources development;
21                      e)           Develop,  in  consultation  with  other agencies  and  stakeholders,  the  National
22       Water Resources Management Master plan following the  lwRM framework and  building on
23      the 1998 Master plan study on water Resources Management, the phitippine water supply
24       and sanitation Master plan, and existing plans ofotheragencies;
25                     f)            Conduct continuing hydrologic surveys and studies of the country's renewable
26       water supply and  establish,  operate,  and  maintain  observation  station  networks with a view
27      towards formulating long-feTm policies to balanee the sustainabitity and optimal multiple use
28       of water resources defining the hydrologic boundaries of basins of the existing water supply
29       sources  and  developing  or  updating  and  implementing  countrywide  comprehensive  basin-
30       widemasterplans;
31                     g)          Establish,  operate,  and  maintain  a  centralized water resources  data  center
32      necessary for the scientific survey and appraisal of surface and ground water potentials of
33       the country and determine the annual renewable water available perwater resources region;
34                     h)           Assist  and  provide  the  NEDA  secretariat with  required  data  and  input from
35       and for the water sector in the formulation of the country's short-term and long-term strategic
36      development  plans  and  actions,  and  recommend  the  adoption  Of  genera+  policies  and
37       guidelines for water resources development to the NEDA secretariat;


1                   i)          Review and  approve water resources development plans  and programs of
2       any agency within the context of the National water Resource Management Master plan and
3       overall national plans and programs;
4                     j)            Regularly review regulations prescribed by any government agency pertaining
5       to  water  use,   exptojtation,   development,   conservation   or  protecfron   of  waters,   water
6       resources, and watershed or basin areas;
7                      k)           Develop and implement in coordination with other relevant agencies, effective
8       codes, standards,  benchmarks, and reasonable guidelines to ensure the safety of all public
9       and  private water structiires  in the country and assure efficiency and  proper quality in  the
10      corrstruetion   Of   water,   sanitation,   irrigation,   hydropower,   flood   contro+,   and   drainage
11         infrastructure;
12                      I)             Review existing guidelines appropriate for private sector participation in water
13       and make needed recommendations to other agencies to promote and enable more ppps in
14       water;
15                      in)          Institutionalize  the  collaboration  between  the  Government  and  the  private
16       Sector,  the  National  Water  Corporation,  in  the  generation  of  new  water  sources,  in  the
17       installation of nationwide water and sewage treatment facilities, and in the establishment of a
18       compretlensive water and sewage pipeline network to provide clean, adequate, reliable and
19        affordable waterforaLI;
20                      n)           Effect inter-sectoral,  inter-agency,  and  inter-departmental  coordination  on  all
21       aspects   of   data   gathering   for   water   resources   development   planning   and   compel
22       submissions of statistics and data on water management with the aim of operationalizing the
23      integrated approach to water resources management or +WRM;
24                     o)           Issue and  promulgate rules, regulations, and guidelines as may be necessary
25       to implementand enforce its powers and functions underthis Act.
26        11.            Resource Regulation
27                  p)         Manage,  protect,  and preserve the country's water resources to ensure the
28       optimal  use  thereof  for  water  supply  uses,  sanitation]  irrigation,   hydropower,  navigation,
29       flood  control,  and  recreation,  including  the enhancement and  maintenance of water quality,
30       conservation   of  watersheds,   control   of  water   pollution,   and   environmental   restoration,
31       without compromising the natural ecosystem functions and services consistent with lwRM;
32                    q)          Regulate and control the  utilization7  abstraction, diversiQnt and development
33       of  water  resources,  taking  into  consideration  its  equitable  distribution  among  competing
34       demands  and  determine  the  standards  of beneficial  and  priority  uses  of water in  times  of
35       crisis and national emergencies;
36                   r)          Determine, adjudicate, and grant water rights to al+ qualified persons, whether
37        natural orjuridical, in accordance with law;


1                   s)         Formutafe  and  enforce  rtlles  and  regulafroms   for  the  development  and
2       optimum  use  of water resources  and  its administration  and  management;  implement rules,
3       regulations,  and  guidelines  for the  enforcement  of  water-related  laws,  including  coherent
4       water protocols,  operating  rules  of all  existing  and  future  water  infrastructure;  and  impose
5       appropriate sanctions for. non-compliance;
6       Ill,         Administration and Management
7                      t)            Develop  guidelines,  including  rules  of  partnership  among  the  Department,
8       field  offices  of  national  government  agencies,  Local  Government  units  (LGUs)  and  other
9       stakeholders, and facilitate the establishment of multi-stakeholder River Basin organizations
10      (RBOs)  per  river  basin  and  strengthen  and  support  existing  RBOs  and  monitor  their
11         activities;
12                      u)           Develop materials for capacity building and training on RBo development and
13       conduct training and workshops for prospective river basins;
14                   v)         Authorize its representatives or any deputized agent to enter any property of
15        public  dominion  or  any  private  land,  building  or  enclave,  whether  inhabited  or  not,  for the
16       purpose   of  conducting   hydrologic   surveys   and   investigations,   including   assessing   and
17       evaluating the conditions  of water facilities  installed  and  determining  compliance  with water
18       laws and standards, in accordancewith law;
19                     w)          Provide  technical  assistance  to  water  users,   including  but  not  limited  to
20       farmers,   communities,   LGUs,   and  other  water  service  providers,  whether  directly  or  in
21        coordination with otheragencies on all aspects of lwRM;
22                     x)           Respond  to  consumer  complaints  and  ensure  the  adequate  promotion  of
23      consumer interests;
24                     y)           Deputize  agents,  whether  from  the  public  or  private  sector,  to  assist  in  the
25       performance of any of the powers and functions of the Department;
26                     z)           Appoint,   hire,   and   maintain  adequate   staff  and   personnel,   advisers,   and
27      consultants with sthtabte qualifieations and experience, as necessary;
28        lv.          Coordination
29                     aa)        Coordinate  and   integrate  on  a  sound  and   logical   basis  water  resources
30       development  activities  of  the  country  within  the  context  of  national  plans  and  policies  for
31        social and economic development;
32                    bb)        Coordinate   with   other   government   agenciest   universities,   and   private
33       professional   groups   all   aspects  of  data   gathering,   the  conduct  of  special   studies  and
34       research on all related aspects of water resources management and development, such as
35       climate  change,   environmental   quality,   desalination,   and   the  development  of  operating
36      strategies,  procedures,  and  protocols  with accompanying computerized decision tools for
37        majorwaterfacilities;


1                   ce)       Coordinate  with  the  coneemed  and  relevant  agencies  engaged  in  flees
2       control, and flood and drought risk management;
3                     dd)        Proactively coordinate with LGUs to ensure the integration of water resources
4       development  plans  into  their comprehensive  land  use  plans,  comprehensive  development
5       plans, and provinctat physical framework and devetopment plan?
6       V.          General or others
7                     ee)        Exercise  such  other  powers  and  functions  necessary  or  incidental  to  the
8       effective administration and management of the country's water resources; and
9                     ff)          Carry out such other functions as the president may from time to time assign
10      to the Department consistent with the provisions of this Act.
11                      SEC.17.  Compos/.1J.on.  -The  Department  shall  be  headed  by  a  Secretary.  The
12       Department  proper  shall  be  composed  of the  Office  of the  Secretary,  the  Offices  of the
13       Undersecretaries  and  the Assistant Secretaries,  and  the  services,  offices,  and  bureaus  of
14       theDepartment.
15                    SEC.18. Secretary of wafer. -The secretary shall be appointed by the president,
16       subject to confirmation  by the  commission on Appointments.  The secretary shall  have the
17        following functions and responsibilities:
18                     a)          Advise  the  President  on  ttie  promulgation  of  executive  or  administrative
19       orders,   regulations,  proclamations,   and  other  issuances   relative   to   matters   under  the
20       jurisdiction of the Department;
21                      b)           Establish  the  policies  and  standards  for  the  operation  of  the  Department
22       pursuantto the president's guidelines;
23                   c)         Promulgate   rules   and   regulations   necessary   to  carry   out   Department
24       objectives, powers and functions;
25                      d)           Exercise supervision and control over all offices under the Department;
26                     e)           Supervise all attached agencies of the Department in accordance with law;
27                   f)          Represent the Department in contracts, awards, and the ttke;
28                     g)          As   deemed   appropriate    by   the   Secretary,   delegate   authority   for   the
29       performance of any power or function as defined herein to officials and employees under his
30       direction;and
31                     h)          Perform such other duties and responsibilities as may be provided by law.
32                   SEC.  19.  undeJsecrefarr.es. - The  Secretary shall  be  assisted by not more  than
33       three undersecretaries, who shall  be appointed by the president upon the recommendation
34       ofthesecretary.
35                    SEC.  20.  Ass;slanf  Secretaries.  -  The   Secretary  shall  be  assisted   by  three
36      Assistant secretaries, who shall be appointed by the president upon the recommendation of
37       thesecretary.


1                    SEC. 21. QEra/ffieafforis. -No person she++ be appointed secretary, Undersecretary,
2       or Assistant Secretary of the Department unless  he  or she  is  a  citizen and  resident of the
3       Philippines,  of  good  moral  character,  of  proven  integrity  and  with  at  least  seven  years  of
4       competence  and  legal,  financial,  engineering  or technical  expertise  in  any of the following:
5       water,  sanjfation,  irrigation,  flood  control,  and  drainage  programs,  preferably  in  a  pubftc
6       agency`
7                   SEC. 22. Serv/.cos, Offices, and Bureaws. -Subject to the power of the secretary,
8       with  the  approval of the  President,  to  reorganize,  restructure,  and  redefine the functions  of
9       the services, offices, and bureaus for the effective discharge of the powers and functions of
10      the Department under this Act, the Department shall have the fctJowing serviees, Offrees, and
11        bureaus: Planning and policy service;  Decision support system service; Administrative and
12        Human  Resource  Service;   Legal  and  Legislative  Service;   Comptrollership  and   Financial
13        Management  Service;   Resource  Regulation  Service;   Internal  Audit  Office;   Public  Affairs
14      Office; Bureau of F+cod control and Drainage; and Bureau of wafer Qualfty Management.
15
16                     The services, offices, and bureaus shall have the following powers and functions:
17
18       I.            Planningandpolicyservice-
19                    a)          Advise the secretary on all matters relating to water resources plaming;
20                     b)           Formulate  strategies  and   priorities  for  water  resources   management  and
21        development   consistent  with   national   development  objectives   and   initiate   or   undertake
22       relevant surveys for development planning;
23                  c)         Develop  and  regularly  update  a  comprehensive  and  integrated  National
24       Water Resources Management Master plan and ensure its integration into existing land use
25        plans;
26                      d)           Coordinate  river basin  planning following the  lwRM framework and the  river
27       basinapproach;
28                      e)           Formulate  or  update  existing   River  Basin   Master  plans  which  include  all
29       aspects  of  water  management  and  development  such  as  water  supply  and  sanitation,
30       irrigation,    flood    control,    storm    water   and    urban    drainage,    flood    and    drought    risk
31       management,  water  resource  development  systems,  and  other  infrastructure  and  public
32       works projects7 including phasing of implementatiorL;
33                      f)            Based  on  the  river  basin  master  plan,  identify  priority  packages  for  water
34        infrastructure development per river basin,  including water supply,  sanitation,  irrigation, flood
35       control,   storm   water  and   urban   drainage,   flood   and   drought   risk   management,   water
36      resource development systems, and other infrastructure and publie vrorks projects, package
37       proposals for funding and  prioritized  project implementation and  the allocation of funds and


1      other resources and undehake or supervise and evaluate the conduct of feasibwity sttrdies
2       and project preparation thereof;
3                      g)           Evaluate  and  appraise   all   regional   and   inter-regional  water  infrastructure
4       development  plans  and   programs  as  to  their  feasibility  and  consistency  with  approved
5       strategies and long and medium-term plans;
6                    h)          Initiate regular Department-wide planning exercises and act as the secretariat
7       thereof;
8                      i)            Gather, analyze, and organize needed statistical data and information;
9                     j)            Provide technical assistance related to its functions to the other offices in the
10      Department, as needed;
11                      k)           Conduct   hydrologic   and   hydraulic   surveys   and   assessments   of   surface
12       waters;
13                      I)             Develop  general  cn.teria  and  standards  on  project  investigation,  formulation,
14       andplanning;
15                      in)          Develop  guidelines  and   standards   on  social   inclusion   in  water  resources
16       management and  ensure  policies,  programs,  and  plans  are  compliant with  the  gender and
17       development framework of the government;
18                     n)          Closely  coordinate  with  PAGASA  for  rainfatt  and  other  climate  data  that
19       should  be  considered  in  the  planning for water  resources  development and  management
20       and forvarious waterinfrastructure; and
21                      o)           Perform such other related duties and responsibilities as may be assigned or
22       delegated bythe secretary or as may be required by law.
4       11,           Decision support system service
5                     a)           Provide the secretary needed data and processed information to aid in policy
6       and management decisions underthe mandate of the Department;
7                   b)         Publish  availabte  real-tine  raw water data  as welt  as  verifed  or validated
8       water data in tabular and graphical displays as time series and spatial data;
9                     c)           Conduct and publish standard data analysis such as basic statistical analysis,
0       trend analysis, analysis of runs, cluster analysis, etc.;
I                    d)          Develop and continuously update water resource management, computerized
2      decision support system (DSS) that incorporates data management system (acquisition arid
3       database),  model  base  (physical,  design,  planning  and  decision  models),  and  user-friendly
4       interface  (graphical  and  visualization  tools).  This  DSS  is  composed  of but  not  limited  to  a
5       measurement  or  data  acquisition  system,  information  or  database  management  system,
6      anaJytieal  and  numerica+  models  for design  and  planning  and  decisions  and  evaluation
7       purposes, and a user-friendly interface that includes graphical interface or visualization tools;


I                   e)         The specific models to be developed and maintained should include but fret
2       be   limited   to   the   following:    long-term   climatologic   and   weather   forecasting   models,
3       watershed models and river flood plain models, groundwater models and coupled to surface
4       water   models,   flood   forecasting   models   for   major   rivers,   optimization-simulation   and
5      management models for watershed conservation, conjunctive strface and groundwater use,
6       irrigation  scheduling,  normal  and  emergency  operations  of  multipurpose  reservoirs+  and
7       waterqualityand ecological models;
8                     f)            Develop  and  manage  the  management  information  system  and  knowledge
9       systems of the Department, including the  retrieval and processing of monfroring information
10      on all projects and activities Of coneem to the Secretary and the web portal and conduct
11        systems    and     process    engineering,     software    development,     software    configuration
12       management, develop and  manage the Department's corporate database,  unified database
13       for water industry,  data  warehouse,  other water information  resources,  library services  and
14      document management and archiving servfoes, develop and manage the Department's +CT
15       infrastructure   and   provide   lcT-related   services   to   the   Department,   including   computer
16       networking and voice communications services and data exchange, manage the literacy and
17       training  services  of the  Department  on  various  lcTs,  KM  tools  and  applications,  including
18       information and knowledge management; and
19                    g)          Perform such other related duties and responsibilities as may be assigned or
20       delegated bythe secretaryor as may be required by law.
21        Ill.          Administrative and Human Resource service
22                     a)          Advise  the  secretary  on  all  matters  relating  to  internal  administration  and
23      human resources management;
24                      b)           Prepare  and  implement an  integrated  personnel  development plan  that shall
25       include  provisions  on  merit  promotions,  performance  evaluation,  job  rotation,  suggestions
26       and incentive awards systems, and health and welfare services;
27                  c)         Provide   serviees   related   to   human   resource   training,   education,   and
28       development,  including  manpower,  career  planning  and  forecasting,  and  development  of
29        indigenous training materials;
30                      d)           Prepare and implement gender equality plans in the Department;
31                     e)          Develop,    establish,    maintain    an    efficient    and    cost-effective    property
32      procurement  system  and  facilities,  and  coordinate  or  otherwise  interface  with  relevant
33       agencies,  whether  government  or  private,  for the  purpose  of developing  or  upgrading  the
34       system;
35                     f)            Secure and maintain necessary Department facilities, and develop, establish,
36      and maintaln an effieient and effective security system covering, among others, personnel,


1       physieal  installations,  equipment,   doctrments,   and  materials,  frofuding  the  conduct  Of
2       security investigations;
3                     g)          Coordinate  with  the  appropriate  government  agencies  for  a  more  efficient
4       conduct of administrative processes;
5                    h)          Develop, establish, and maintain an efficient records system;
6                    i)           Provide  assistance  in  its  area  of  specialization  to  the  Department proper,
7       Water   Resources   Regional   Offices   (WRROs),   and,   when   requested,   to   the   attached
8       agencies of the Department; and
9                    j)            Perform such other related duties and responsibilities as may be assigned or
10      delegated by the secretary or as may be required by few.
11        lv.          Legal and Legislativeservice
12                      a)           Advise the secretary on all matters relating to legal and legislative affairs;
13                      b)           Prepare  Department contracts and  legal  instruments,  review and  interpret all
14      contracts and agreements entered into by the Department and evaluate all legal proposals;
15                      c)           Conduct  administrative  investigation  as  well  as  the  review  of  administrative
16       charges against officers and employees of the Department;
17                      d)           Exercise functional jurisdiction over the legal staffs of wRROs;
18                    e)          Provide legat assistance to the offices in the Department, WRROs. and, when
19       requested, to the attached agencies of the Department;
20                     f)            Develop   and   prepare   the   Department's   legislative   agenda,   recommend
21        Presidential   certification   of  the   urgency   of   priority   water   bills,   and   other  water-related
22        legislations;
23                   g)         Ccordjmate  and   maintain  linkages  among  the  varrfus  offiees,   bureaus,
24       regional  offices,  and  attached  agencies  to  the  Department,  along  with  other  government
25       agencies on policy matters affecting the Department's mandate in relation to legislation;
26                     h)           Maintain  effective  liaison with the  House of Representatives  and  the  senate
27      regarding legislative inquiries and enactmentof water bills or other taws that witl affect water;
28                      i)             Monitor the  progress  of the  Department's  priority or certified  bills  to  ensure
29       passage;and
30                     j)            Perform such other related duties and responsibilities as may be assigned or
31       delegated bythe secretary or as may be required by law.
32
33       V.           Comptrollership and Financial Management service
34                     a)          Advise the secretary on  all  matters relating to the accounting of government
35       expenditures and  receipts,  budgeting and cash management,  project finances, and financial
36      systems and procedures;


I                   b)         Prepare   budget   proposals   and   pursue   formal   bttdget   authorizations,
2       undertake  budget execution,  and  prepare  and  submit all  appropriate  reports  to  the  proper
3        offices;
4                     c)           Develop    and    maintain    accounting,    financial,    and    assets    management
5      systems, proceduT.es, and practices in the Deparment proper and wRROs;
6                    d)          Review and apprise systems and procedures+ organizational structure, assets
7       management practices, accounting, and other records, reports, and performance standards,
8       such as budgets and standard costs of the Department proper and wRROs;
9                     e)          Provide   assistance   in   its   area   of   specialization   to   any   offices   in   the
10      Department  proper,  WRROs,  and,  when  requested,  to  the  attached  agencies  Of  the
11        Department;and
12                     f)            Perform such other related duties and responsibilities as may be assigned or
13       delegated bythe secretary or as may be required by law.
14      Vl.        Resource Regulatory service
15                     a)          Advise the secretary on all matters relating to resource regulations;
16                      b)           Determine,  grant,  and  regulate  water rights for the  appropriate,  optimal,  and
17       sustainable use of surface and ground water;
18                    c)          Determine, evaluate, and grant waterworks and sewerage franchises;
19                    d)          Investigate violations of water rights, the water code of the  philippines, and
20       other related water laws, and impose the appropriate sanctions in accordance with law;
21                      e)           Adjudicate water use conflicts; and
22                     f)            Perform such other related duties and responsibilities as may be assigned or
23      delegated by the secretary or as may be required by law.
24        Vll.         Internal Audit office
25                     a)          Advise  the  Secretary  on  all  matters  relating  to  management  control  and
26       operationsaudit;
27                   b)         Conduct  management  and  operations  performance  atrdit  of  Department
28       activities   and   units   and   determine   as   to   the   degree   of   compliance   with   established
29       objectives,   policies,   methods  and   procedures,   government  regulations,   and   contractual
30       obligations of the Department;
31                     c)          Review   and   appraise   systems   and   procedures,   organizational   structure,
32      assets management practices, accountingt and other records and performance standardst
33       such as budgets and standard costs, of the Department properand wRROs;
34                     d)          Analyze and  evaluate management deficiencies and assist top management
35       to solve problems by recommending realistic courses of action; and
36                  e)         Perform such other related duties and responsibtl+ties as may be assiened or
37       delegated bythe secretaryor as may be required by law.


1
2        VIll.       Public Affairs office
3                      A.           Public Awareness
4                     a)          Advise the secretary on matters pertaining to public affairs services;
5                    b)          Develop  and  supervise  the  imptementation  of communications  programs  to
6       have relevant policies, programs, and plans of the Department understood by the public;
7                      c)           Produce and  supervise the dissemination  of communication  materials  in  line
8       with   the   priorities   of   the   Department   and   the   national   government   public   information
9       programs;
10                   d)         Conduct  qubljc  opinion  and  attitude  surveys  to  jdentfty  the  interests  and
11       concerns ofkeygroups served by the Department;
12                      e)           Establish editorial policies on print and broadcast media;
13                      f)            Establish  and  maintain  linkages  with  the  trilmedia  and  presence  in  social
14        media;
15                     g)           Coordinate the conduct of interviews and news conferences;
16                     h)           Act as spokesperson for the Department;
17                     i)            Coordinate with various  Department units,  concerned  government agencies,
18      tri-media and other stakeholders on matters related to the above-enumerated functions;
19                    j)            Coordinate  with  the  appropriate  national  government  agencies  tasked  with
20        public information affairs:
21                       8.           Promoting participation
22                      k)           Conduct public consultations and discussions;
23                   I)          Develop and disserfunate relevant and appropriate materials and programs
24       for public information and education, as well as advocacy campaign;
25                      in)         Conduct seminars and workshops involving the LGUs and the general  public
26       on current water issues and problems;
27                   n)         Conduct  capabitity  buiiding  seminars  of  various  stakeholders  to  promote
28        meaningful   participation   in   the   Department's  policy-making,   planning,   development,   and
29       implementation of various programs and projects.
30                      C.           Special Events
31                     o)          Coordinate  the  organizaton  and  promotion  of  special  events  and  water
3 2       exhibits ;
33                      p)          Act as the focal point for all water related events; and
34                     q)           Perform such other related duties and responsibilities as may be assigned or
35       delegated bythe secretaryoras may be required by law.
36      lx.        Bureau of Flood control and Drahage and Drought


I                   a)         Formulate   pdicy,   strategies,   and   programs  on  #ood   and  drought  risk
2       management in  the  context of integrated  flood  and  drought management,  which  integrates
3       water,   land,   coastal   zone,   and   multi-hazard   management   consistent   with   lwRM.   In
4       integrating  land-use  planning  and  water  management,  the  Department  should  harmonize
5       and synthesize plans to enable the sharing of information between land-use  planning and
6       water    management    authorities    in    accordance    with    [WRM.    In    integrating    hazard
7       management,  a  holistic  approach  should  be  adopted  so  that  integrated  flood  and  drought
8       management  should   be  part  of  a  wider  risk  or  multi-hazard   management  system  (e.g.
9       earthquake, landslide, fire, tsunami, etc.);
10                   b)         Integrate  climate  change  and  disaster  risk  reduction  and  management  in
11         policiesandplans;
12                     c)           Prepare   master   plans   of  flood   management   and   drainage   and   drought
13       management in river basins in coordination with the concerned wRR0s and RBOs;
14                   d)         Prepare master plans of urban drainage in cities and munieipalities;
15                      e)           Prepare feasibility studies of recommended measures in the master plans;
16                     f)            plan  and  design  structural   measures  for  flood  control  and   drainage  and
17        drought;
18                     g)          lmplemen{  and  collaborate  with  concerned  agencies  on  the  non-structural
19       measures;
20                      h)           Patrol and investigate rivers, including the monitoring of stream flows;
21                      i)            Conduct postrdisaster investigations and evaluation and damage assessment
22       of flood infrastructures after extreme events;
23                  j)          Conduct research and development on water and sediment+elated disasters;
24                      k)           Develop   design   guidelines,   criteria,   and   standards   on   flood   control   and
25       drainagestructures;
26                      I)            Provide technical  assistance to other government agencies,  including  LGUs,
2 7       and other stakeholders ;
28                     in)         Advise   the   Secretary   on   declaring   flood   control   areas   and   recommend
29       guidelines  for flood  plain  management  plans  in  these  areas  in  coordination  with  National
30       Disaster Risk Reduction Management council (NDRRMC); and
31                     n)          Perform such other related duties and responsibmties as may be assigned or
32      delegated by the secretary or as may be required by law,
33
34       X.          Bureau ofwaterQuality Management
35                     a)          Establish  water  quality  guidelines  for  freshwater  and  coastal   and   marine
36      waters as basis for classifying water bodies in the country; spectfieawy, dove+op water quatty


1       indices or composite metrfes to measure the qualfty status and health of natura+ wafer bodies
2        in relation to ecological integrity and function;
3                      b)           Establish effluent standards for point sources of pollution;
4                     c)           Establish internationally accepted procedures for sampling and analysis;
5                    d)          Prepare an integrated water quatfty management framework;
6                    e)          Prepare   10-year  water  quality  management  plans  for  each  water  quality
7       management area  as  part of the  River  Basin  Master  Plans  and  in  support of the  National
8       Water Resources Management Master plan;
9                    f)            Classfty    groundwater    sources    and    prepare    a    national    groundwater
10       vulnerability map;
11                      g)           Classify  or  reclassify  all  water  bodies  according  to  their  beneficial  usages
12        using the water quality guidelines established;
13                      h)           Issue permits, clearances, and similar instruments,  pursuant to the philippine
14      CteanwaterActof 2004;
15                      i)            Collect the wastewater discharge (EUF) fees for all permittees;
16                     j)             Monitor   the   compliance   of   water   discharge   permittees   with   the   effluent
17       standards;
18                     k)           Regularty monitor the water quatfty of major water bodies in the country and
19       analyze the data to identify possible sources of pollution;
20                     I)            Issue  notices  of  violation  and  cease  and  desist  orders  for  those  found  in
21         violation;
22                      in)          Investigate   cases   against  violators  with   the  Water  Pollution   Adjudication
23       Board;
24                     n)           Serve as the secretariat of the water pollution Adjudication Board; and
25                     o)           Perform such other related duties and responsibilities as may be assigned or
26       delegated bythe secretary or as may be required by law.
27                   SEC. 23. Water pollution Adifudicatfon Board. -There is hereby crearfed a INater
28       Pollution   Adjudication   Board   under   the   Office   of   the   Secretary.   The   Board   shall   be
29       composed of the secretary as chairperson, two undersecretaries as may be designated by
30       the secretary, the head of the water Quality Management Bureau, and three representatives
31       from  other staketiolders to be designated by the Secretary as members.  The Board shall
32      assume the powers and functions of the National pollution control commission with respect
33       to the adjudication of water pollution cases. The Bureau of water Quality Management shall
34       serve as the secretariat. These powers and functions  may be delegated to the field officers
35       of the Department in accordance with rules and regulations to be promulgated by the Board.
36                  SEC. 24. Wafer fiesorfrces Reg].oma/ Offl.ces. -The wRROs, organized per water
37       resources   region   as   deemed   necessary   and   appropriate   by   the   Secretary,   shall   be


1       responsible for implementing the mandate, and powers and functiene of the Depatment at
2       the field level, except for policy-making vested solely in the central office.  For this purpose, it
3       shall have the following powers and functions:
4                     a)           Formulate  or  update  and  coordinate  the  river  basin  master  plans  for  river
5       basins  within  its  jurisdictions,  ensuring  consistency  with  the  National  Water  Resources
6       ManagementMaster plan;
7                      b)           Advocate   and   strongly   support   the    creation   and   functioning   of   multi-
8       stakeholder RBOs and serve as the secretariat of such RBOs;
9                     c)           Undertake   and   evaluate   the   planning,   design,   construction,   and   work
10      supervision functions of the  Department for the infrastructure and public works within the
11          region;
12                      d)           Ensure the implementation of laws,  policies,  programs,  rules, and  regulations
13        regarding   the   abovementioned   infrastructure   as   well   as   public   and   private   physical
14       structures;
15                      e)           Provide technical assistance related to their functions to other agencies within
16       the region, especiallyLGUs;
17                     f)            Coordinate wi.th other departments,  agencies,  institutions,  and  organizations,
18       especially LGUs, within the region, in the planning and imptementation of river basin master
19        plans;
20                      g)           Conduct continuing consultations with the local communities, take appropriate
21       measures to  make the  services of the  Department responsive to the  needs of the  general
22       public,  compile  and  submit  such  information  to  the  central  office,  and  recommend  such
23      appropriate actionsas may be necessary; and
24                     h)           Perform such other related duties and  responsibilities as may be assigned or
25       delegated bythe secretaryor as may be required by law.
26                     Each  WRRO  shall  be  headed  by  a  Regional  Director who  shall  be  responsible  for
27      efficiently and effective+y carrying otlt the powers and functions of the WRRO. The Regienal
28       Director  shall  be  assisted  by  two  Assistant  Regional  Directors  who  shall  supervise  the
29       planning,  project  design,  and  evaluation  function;  and  the  technical  assistance  function  to
30       theRBOsintheregion.
31                    SEC. 25. Trar}sfer ofAger]ci.es ant/ Persomef. -Unless otherwise provided in this
32      Act, the following agencies are hereby abolishedt and their powers and functions, applicable
33       funds  and  appropriations,  records,  equipment,  property,  and  personnel  transferred  to  the
34       Department:
35                     a)          The National water Resources Board (NWRB);
36                   b)         The  River Basin  contro+  Offiee (RBCO) of the Depatinent of  Environment
37       and Natural Resources (DENR);


1                    c)          The Mani+a Bay coordinating office (MBCO} of the DENR;
2                     d)           The  flood  management planning  and  sediment  management function  of the
3       flood   control   management   cluster  of  the   Department   of   Public   Works   and   Highways
4        (DPWH);
5                    e)          The water Qualfty Management section  of the Envfronmentat Management
6       Bureau(EMB)oftheDENR;
7                     f)            The function  of the  Mines  and  Geosciences  Bureau  (MGB)  of the  DENR  to
8       conduct hydrological surveys; and
9                     g)          The  monitoring of stream frow and other water data collection function of the
10      BureauofDesignofthe DPWH.
11                      The following existing agencies are hereby attached to the Department for policy and
12       program  coordination,  and  shall  continue  to  operate  and  function  in  accordance  with  the
13       charters, laws, or orders creating them, insofar and they are not inconsistent with this Act:
14                    a)          The Local water utilities Administraton (LWUA};
15                     b)          the Metropolitan waterworks and sewerage system (MWSS);
16                        c)            the National  Irrigation Administration (NIA);
17                      d)           the Laguna Lake Development Authority (LLDA);
18                     e)          the pasig F{iver Rehabilitation commission; and
19                    f)           any other agency exercising water resources managementt conservation, and
20       protection functions, which may be ordered to be transferred to the Department.
21                      The  National  Water Corporation,  established  by this  Act,  is  hereby  attached  to  the
22       Department of Water and  shall function  as its  corporate  arm.  Its  powers and  functions are
23      defined in chapter v of this water security Act.
24                     The laws and rules on government reorganization as provided for in Republic Act No.
25       6656 orthe Reorganization Law, shall govern the reorganization process of the Department.
26                   SEC.  26.  Apex  Council  of  Advisers  on  Walter  Affairs.  -  An  apex  council  Of
27      advisers on water affairs consisting of fi\re members, inctnding at least one representative
28       from  the  private  sector,  may  be  called  upon  by the  President to  advise  him  or  her on  the
29       overall water program, especially on private sector initiatives and proposals.
30
31                                                                                      CHAPTER IV
32                                                        WATER REGULATORY COMMISSION
33                    SEC.   27.      Water  Regu/afory   Comm/.ss/.on.   -  There   is   hereby   created   and
34       established    an    independent,    quasi-judicial    regulatory    body,    the    Water    Regulatory
35       Commission,   hereinafter  referred   to  as  the   Commission.  The   Commission  shall   be  an
36      attached  agency of the  Office Of the  President.  The  Commission  shall  have a  Board of
37       Commissioners and shall be vested with powers and functions as defined in this Act.


I                   SEC.  28.  Regti/atory Un/ts. -  The Regulatory Units of the Commission shall be
2       composed of the provincial Regulatory units and the central Regulatory unit.
3                      The    Provincial    Regulatory   Units   shall   be   established    by   the   Commission   in
4       accordance with such rules,  regulations, guidelines, and standards as the commission shall
5       issue, and as provided hereunder.
6                     Moreover,  the  pertinent  regulatory  divisions  or  units  of  the  MWSS,  NWRB,  and
7       LWUA  are  hereby  transferred  to  the  Commission,  and  they  shall  collectively  comprise  its
8       Central  Regulatory  Unit  for  water  supply  and  sanitation  services  that  provide  services  to
9       Metro  Manila,  other  metropolitan  areas,  or  more  than  one  province;  or  that  are  owned,
10      operated, and malnfained by special economie zones.
11                    SEC. 29.   Powe/s and Funcl/.ons of the comm/.ss/.on. -The overall authority and
12       powers of the commission shall cover and apply to all service providers, whether private or
13        public,   providing  or  intending  to  provide  water  supply  and  sanitation  services,   including
14      supp+iers to subdivisions and other service providers, sewerage, and septage treatment and
15       disposal services for domestic or residential, industrial or commercial use.
16                      The commission shall have the following powers and functions:
17                     a)           Issue and  promulgate rules, regulations, and guidelines as may be necessary
18       to implement and enforce its powers and functions underthis Act;
19                    b)          Set and enforce just and reasonable technical standards, classifications, and
20       measurements of service;
21                     c)           Promulgate   and   enforce,   in   accordance   with   law,   a   Water   Supply   and
22       Sanitation services code;
2 3                    d)          Appoint central and provincial regulators;
24                     e)           Establish  rules  and  regulations  to  monitor,  avoid,  and  provide  remedies  for
25       any market power abuse  or anti-competitive or discriminatory act or behavior by or against
26       any   participant   in   the   water   supply   and   sanitations   services   jn   collaboration   with   the
27       Phitippjne  Competifron  Commission  (PCC).  Upon  finding  that  a  market  partieipam  has
28       engaged  jn, or fell victim to such act or behavior,  the Commission,  in  collaboration with the
29       PCC, shall act to stop and redress the same. Such remedies may, without limitation, include
30       the   imposition   of  price  controls,   issuance  of  injunctions,   requirement  of  divestment  or
31       disgorgement  Of  excess   profits,   invatidation   of  contracts,   and  imposition   of  fines   and
32      penalties pursuantto law,
33                     f)            Adopt and  require that books,  records,  and  accounts be kept and  maintained
34       in accordance with the prescribed uniform accounting system;
35                     g)           Fix  and  determine  proper  and  adequate  rates  of  depreciation  of  properties
36      and equipment used in water supply and saritatien services;


I                   h)         Impose  and  collect  annua+  levies  determined  as  a  peroentage  Of  gross
2       revenue accruing  in  relation  to the  licensed  activities,  and  reasonable fees  and  surcharges
3       as may be necessary for achieving the purposes, powers, and functions of the commission;
4                     i)            Require the  submission of reports  of finances and  operations, verified  under
5       oath by the owner orpresident and secretary of the ttcensee;
6                    j)            Determine and require the monitoring and submission of such data, statistics,
7       and  other  information  from  the   Regulatory  Units  and   any  or  all   licensees  as  may  be
8       necessary  for  the  effective  and  efficient  exercise  of  its  duties,  functions,   powers,   and
9        responsibilities;
10                   k)         Investigate, mctu propr.a or upon complaint in witing, any matter concerning
11        the  operation  of the  service  and  require  that service  be  provided  in  a  proper  and  suitable
12        manger;
13                      I)            Impose   penalties   and   fines   against  any  licensee   or  against  its   owners,
14      directors, offieers,  agents or rept.esentatives for any vietation of this Act or of the lieense,
15       order, rule, regulation, or requirement issued by the commission;
16                     in)         Require any licensee to pay the actual expenses incurred by the commission
17       in any investigation  if it shall  be found that a  licensee violated  any provision of this Act or of
18       the license, order, rule, regulation, or requirement issued by the commission;
19                     n)          Advise, apprise, and coordinate with other relevant agencies of the matioma[ or
20       local government on any matter relating to water supply and sanitation services;
21                      o)           Deputize  agents,  whether from  the  public  or  private  sector,  to  assist  in  the
22       performance of any powers and functions of the commission;
23                   p)         Upon  appeal  and  after  due   hearing,   appoint  an  interim  or  temporary
24       management committee to ensure continuity of service  in case a  licensee fails to meet the
25       conditions  of  its  license  and  the  concerned  Regulatory  Unit  fails  or  refuses  to  appoint  an
26       interim management committee as provided in the following section;
27                   q)         Appoint,  hire,  and  maintain  adequate  staff and personnel,  advisers,  and/or
28       consultants, with suitable qualifications and experience, as necessary;
29                      r)            Exercise  original  and  exclusive  jurisdiction  over  all  cases  contesting  rates,
30       fees, fines,  and  penalties  imposed  by the  Regulatory  Units  in the exercise  of their powers,
31       functions,  and  Tesponsibilities  as  set  forth  herein,  and  over  att  cases  invoMng  disputes
32      between  and  among participants  or stakeholders in water supply and  sanitation  services;
33        and
34                     s)           Exercise such other incidental powers and functions as may be necessary to
35       attain the objectives of this Act.
36                  SEC. 3®.  Powers and Functions of the Regulatory units. -The Requleto¥y units
37       of the commission shall have the following powers and functions:


I                    a)         Jssue  +ieenses  authoriz+ng  the  operation  of  water  supp+y  and  sahitatiert
2       services in any specified area orareas within the philippines;
3                     b)           Impose fines, charges, and other penalties upon any service provider and its
4       officers  and  directors  who  shall  fail  or  refuse  to  register  and  obtain  a  license   prior  to
5       operation or commencement of business, as provided hereunder
6                    c)          Consistent with rules, guidelines+ procedures, and methodologies, which the
7       Commission   shall   provide,   review,   determine.   fix,   and   approve   proposed   water   and
8       sewerage tariffs,  rates, and other charges that licensees may impose upon their customers
9       orconsumers;
10                   d)         Appraise and value property and equipment used by Licensees in providing
11        watersupplyand sanitation services;
12                     e)           Enforce  financial,  technical,   and  other  performance  standards  set  by  the
13        Commissionforlicensees;
14                  f)          Respond   to   consumer  complaints   and   ensure   adequate   protecfron   of
15       consumerinterests;
16                      g)           Investigate  accidents  directly or indirectly  arising from  or connected  with  the
17       maintenance  or operation  of the  service,  and  make such  order or recommendation  as the
18       public interestmaywarrant;
19                     h)           Upon petition  or mofu propr/'o,  where  in  its  determination public  irrferest so
20       dictates, require the review and approval of contracts or agreements that may impact on the
21       tariffs, rates, and other charges of service provision entered into by service providers;
22                     i)            Require the submission  of reports,  plans,  and  other documents  that set out
23      the performance targets of licensees;
24                     j)            Impose   and   collect  annual   levies   determined   as   a   percentage   of  gross
25       revenue accruing  in  relation  to the  licensed activities,  and  reasonable fees and  surcharges
26       as may be necessary for achieving the purposes, powers, and functions of the regulator;
27                   k)         Conchct benchmarking and monitor the performance of tieensees under their
28       jurisdiction,   and   publish   reports  detailing  the   results  thereof,   as  may  be   necessary  or
29       required bythe commission;
30                     I)            Amend,  modify,  suspend,  or  revoke  any  license  issued  by  them,  after  due
31       notice and hearing, on any of the fo[lowing grourids:
32                                i.           When the facts and circumstances on which the license was issued
33                      have been misinterpreted or has materially changed;
34                                   ii.            Where   the   licensee   has   failed   to   meet   or   comply   with   terms,
35                     conditions, and performance targets -including but not limited to service expansion -
36                   that may have been set in the license;


i                                 +i+,           Where   the   ljcensee   +s   found   to   be   manifestly   ineffieieftt   +n   the
2                      operation of or provision of water supply and sanitation services in its area; or
3                                   iv.            When the holder thereof has violated or willfully refused to comply with
4                     any order, rule, or regulation of the commission or any provision of this Act;
5                    in)         Appoint an interim management committee to ensure continuity of service in
6       case a licensee fails to meetthe conditions of its license; and
7                     n)           Submit performance plans and reports as required by the commission.
8                     SEC.  31.  Compos/.ffon. -The  Commission  shall  be  a  collegial  body composed  of
9       five  full-time   members  composed   of  a   Chairperson   and  four  members,   who  shall   be
10      appointed by the President. All members of the Conmissien must be citizens and residents
11        of the philippines, at least 35 years of age, and of good moral character,  recognized integrity
12       and   competence   in   the   field   of  law,   business,   commerce,   finance,   accounting,   public
13       administration,  economics,  management,  physical  or  engineering  services,  hydrology,  and
14      other related serviees, with at least three years actua+ and distinguished experience in their
15       respective fields of expertise: Provided, That out of the four members of the commission, at
16       least one shall  be a member of the philippine Bar with at least 10 years of expen.ence in the
17       practice of law, and at least one shall be a public accountant with at least 10 years of active
18        practice.
19                    The  term  of  office  of  each  member  of  the  Commission  shall  be  seven  years;
20       Provided,  However,  That amctng  the  members first appointed,  the  Chairperson  shall  serve
21       for  a  period  of  seven  years,  two  members  shall  serve  for five  years,  and  the  other two
22       members shall serve for three years;  Provided,  Further, That any member whose term  has
23      expired as  specified herein shall  serve as such until his successor shall have been duly
24       appointed  and  qualified;  Provided,  Moreover,  That any appointment to fill  a vacancy in  the
25       Commission  arising  from  death,  removal,  retirement,  or resignation  shall  be  made  only for
26       the  unexpired  term  of  such  vacancy;  and   Provided,   Finally,  That  in  no  case  shall  any
27      member serve for more than seven ysars in the commission.
28                     The Commission shall  meet as often as may be necessary on such day or days as
29       the Chairperson  may fix. The presence of at least three  members of the Commission shall
30       constitute  a  quorum,  which  shall  be  necessary  for  the  transaction  of  any  business.  The
31       affirmative vote of a majority of the members of the commission where a quorum is present
32       shall be necessary for the  adoption of any order,  resolution,  decision,  or other act of the
33        Commission  in  the  exercise  of  its  quasi-judicial  functions:  Provided,  That  in  promulgating
34       rules,   regulations,   guidelines,   and   in   the   exercise  of  its   quasi-legislative  functions,   the
35       affirmative vote of at least three members shall be required.
36                   The  Chairperson of the  Commission shall exercise general executive contro+ and
37       supervision  of  the  Commission  and  its  members,  staff  and  personnel,  and  agents  and


1       representatives.  W+thin  three  months  from  the  creation  of  the  Commission  and  the
2       appointment  of  all   members  of  the  Commission,   the  Chairperson   shall  submit  for  the
3       approval by the  president the new organizational structure and plantilla  positions necessary
4       to  carry  out  the  powers  and  functions  of  the  Commission,  including  those  of  the  Central
5       Regulatory  Unit  and  the  Provincial  Regulatory  Units.   Ttie  staff  and  personnet  of  the
6       Commission shall be filled by regular appointments  in accordance with a staffing plan to be
7       prepared bythe commission.
8                      Members   of   the   Commission   shall   enjoy   security   of  tenure   and   shall   not   be
9       suspended or removed from office, except forjust cause as specified by law.
10                   The chairperson and members of the commission or any of their relatives within the
11        fourth civil degree of consanguinity or affinity,  legitimate or common  law,  shall  be  prohibited
12       from  holding  any  interest whatsoever,  either as  investor,  stockholder,  officer,  or director in
13       any company or entity engaged in water supply and sanitation services, and must, therefore,
14      divest through sate or legal disposition any and all such interests apon assumption of office.
15                    SEC. 32.  Comm/.ss/.on secrefarJ.af. -The commission shall establish a secretariat
16       that shall provide the following technical and other support services:
17                     a)           Providing   the   necessary   technical   inputs   and   secretarial   support   to   the
18       Commission to facilitate the conduct of its functions;
19                     b)          Coordinating  with  Regulatory  units  to  ensure  proper  implementation  of the
20       rules, regulations, and guidelines promulgated by the commission;
21                      c)           Monitoring  and  assessing  activities  of  the   Regulatory  units  vis-a-vis  their
22       respective annual performance plans and targets;
23                   d)         Maintaining a database on water supply and sahifatien serviees; and
24                     e)           Coordinating with other relevant agencies of the  national or local government
25       on any matter relating to water supply and sanitation services.
26                     SEC.   33.     Execdf/Ve  D/-rector.  -  The  Commission  shall  appoint  an   Executive
27      Director who shall head the Commission Secretariat, keep and maintain the offlciat record
28       and report of the proceedings of the commission, and have the authority to administer oaths
29        in all matters falling within the jurisdiction of the commission.
30                      The  Executive  Director shall  be  responsible  for the  effective  implementation  of the
31       pdicies,  plans,  programs,  rules,  regulations,  and  directives  of the  Commission;  coordinate
32       and  supervise  the  activities  of  the  different  Operating  units  under  the  Commission;  arid
33       performs such functions as may be assigned by the chairperson and other members of the
34       Commission.
35                   SEC.  34.  Compensation  and  Other  Emoluments.  -The  compensatiion  Of  the
36      inembers of the commission and its staff she+I be exempt from the coverage of Republie Act


I       No. 6758 or the Salary Standardization Act: Pfevided, That the salaries of the Commjssien
2       and its staff shall conform as closely as possible to the principles thereof.
3                     For   this   purpose,   the   schedule   of   compensation   of   the   Commission   and   its
4       Regulatory   Units   and   staff   shall   be   submitted   for   approval   of   the   President.   The
5       compensation  schedule  of  the  Commission  and  its  Regulatory  tJnits  and  staff  shaft  be
6       implemented within sin months from the effectivity of this Act and may be upgraded by the
7       President as the  need arises:  Provided,  Further,  That in  no case shall the compensation  of
8       the commission and its staff be upgraded more than once a year.
9                     Pertinent   civil   service   laws,   rules,   and   regulations   of  the   Phifippfnes   shall   be
10      applicable to the commission.
11                       The  Chairperson  and  members  of  the  Commission  shall  initially  be  entitled  to  the
12       same salaries, allowances, and benefits as those of the chief Justice and Associate Justices
13       of the supreme court, respectively.
14                  SEC.35. Registration and Licensing of wa[ter supply arnd sainita[tion services. -
15       All  water supply  and  sanitation  service  providers,  including  bulk  water suppliers  and  those
16       providing   services   to   subdivisions   and   other   service   providers,   shall   register  with   the
17       Commission and,  subject to such rules,  guidelines,  procedures,  and other issuances as the
18       Commission may issue, obtain a license to operate from the appropriate Regulatory units.
19                    The  Commission shall also ensure that the granting and revocation of licenses  are
20       carried  out  fairly,  transparently,   and  without  discrimination.   Its  issuances  shall  therefore
21        specify, among others, the qualifications,  requirements, and procedures for the granting and
22       revocation   of  licenses,   as   well   as   the   standards   and   performance   targets   that   must
23      continuously be complied with in order to keep such lieenses valid.
24                      Unless otherwise provided herein or by the commission, no service provider of water
25       supply and  sanitation  services shall commence  or conduct the  business of providing  water
26       supply and sanitation services without first obtaining a license.
27                   Concession  agreements  and  other  contracts  for  water  supply  provision  currently
28        existing  shall  remain  valid  and  in  force,  unless  otherwise  invalidated  by  the  Commission
29       where public interest so dictates, afterdue notice and hearing.
30                    SEC. 36. Condi.ti.ons of i/.cense. -The commission and the concerned Regulatory
31       Unit may impose such conditions in the issued ticense as it may deem necessary, such as
32       but not limited to:
33                     a)          Tariffs,  rates,  and  other charges  that  may  be  imposed  on  its  customers  or
34       consumers;
35                      b)           Term fixing the duration of the privilege;
36                   c)          Grounds for modification, suspension, or canceltatien of the License;
37                      d)           Minimum technical performance and service level standards;


I                   e)         Expansion targets and serviee love+ improvements over tine;
2                      f)            Restrictions  or  conditions  for  transferability  of  the   business  or  controlling
3        interestin the business;
4                     g)           Reportorial requirements and obligations of the grantee; and
5                    h)          Submission  to  annual  performance  audit  ty  the  Commission  or  its  duly
6       authorized representatives.
7                     The  commission  shall  specify the  requirements and  procedures for existing  holders
8       of certificates of public convenience and  certificate of public convenience and  Necessity
9       issued by NWRB, and certificate of conformance issued by LWUA, to convert their existing
10      certificates into Jieenses issued by the commission.
11                       All  existing  providers of water supply and  sanitation  services without any legal  and
12       valid  certificates  of  public  convenience,  Certificate of public  convenience  and  Necessity,
13       and  Certificate of Conformance  shall  register with  the  Commission  and  apply for a  license
14      within  six  months  from  the  effectivity  Of this  Act.  Existing providers of water  supp+y  and
15       sanitation services who fail to register with the commission and apply for a license within six
16       months from the effectivity of this Act shall subject such  provider to penalties as provided  in
17        this Act.
18                   SEC. 37.   Ri.ghrs and Dufi.es of [i.ce7]sees. -Any person granted a license under
19       this Act shall have the obligation to ensure that its licensed activities are conducted so as to
20       furtherthe public interestand in particular, thatthey:
21                      a)           Foster the  maintenance and development of efficient,  coordinated  and viable
22       operation of their license activities;
23                   b)         Ensure  that  their  water  supply  and  sanitafron  serviees  are  provided  in  a
24       diligent,  conscientious,  and  workmanlike  manner,  in  accordance  with  applicable  laws  and
25       standards and practices set by the commission and generally accepted in the water supply
26       and sanitation services industry;
27                   c)         Comply with drinking water qualfty requirements and cther requirements and
28       standards that may be set bythe commission; and
29                      d)           Not   abandon   its   service   without   prior   notice   to   and   approval   by   the
30        Commission.
31                     Any person granted a license under this Act shall, to the extent allowed by law and
32      specified in the ltcenset have the rights to acquire or lease land and lay or repair water and
33        sanitation  mains  and  other  relevant  facilities  in  public  ways,  when  required  to  fulfill  their
34       obligations.
35                      Subject  to  any  condition  or  any  limitation  laid  down  in  the  license,  a  license  may
36      disconnect the supply of water supply and sanitation serviees to a customer if sueh customer


I      defaults in the payment of such amounts due to that +icensee in respect of water stlpplied or
2       sanitation services provided, or for acts of pilferage pursuant to law.
3                      Any  license  issued  under this  Act  shall  contain  provisions  designed  to  ensure  that
4       licensees :
5                   a)          Publish  the  tariffs,  rates,  and  other charges  approved by the  commission,
6       and other terms and conditions imposed by the commission for the provision of water supply
7       and sanitation services;
8                      b)           Prepare  within  three  months  from  the  issuance  of a  license,  in  consultation
9       with  its  customers,  a  customer  service  code  specifying  the  manner  and  procedure  for:
10      metering, hilling, and coJtection of the Jicensee's approved tariffs, rates, and other charges:
11        disconnection  or suspension  of service  in  case  of  non-payment of tariffs,  rates,  and  other
12       charges,  or acts of pilferage;  and  recommendation and  recovery of arrears  in tariffs,  rates,
13       andothercharges;
14                   c)         Maintain  financial  accounts  in  accordanee  with  the  marmer and  procedure
15       specified in the license and as may be amended from time to time by the commission; and
16                      d)           Maintain  and,  upon  request  by  anyone  during  regular office  hours,  promptly
17       make  available  for scrutiny  and  inspection  such  data,  statistics,  and  other  information,  as
18       may be required bythe commission.
19                   SEC.  38.  Setting  Tari.ffs,  Rates,  and  Chfler  Changes.  -Regulatory  Units  shall
20       establish tariffs,  rates, and other charges, which are fair and reasonable, and which provide
21        for  the  economic  viability  of  the  service  and  a  fair  return  on  investment  considering  the
22       prevailing  cost of capital  in  the  domestic  and  international  market.  Such  tariffs,  rates,  and
23      other charges  shat+ be based on and consistent with a rate-setting methodology that the
24       Commission  shall,  after  due  consultation,  define  and  publish,   considering  the  following,
25       amongothers:
26                     a)           Reasonable  and  prudent capital  and  recurrent costs of providing the  service
27      including a reasonable rate of return of the capital;
28                      b)           Efficiency of the service;
29                      c)           Incentives for enhancement of efficiency;
30                     d)          Willingness to pay of customers or consumers;
31                      e)           Equfty considerations; and
3 2                     f)           Administrative s impJicity,
33       The   Commission   may   adopt   alternative   forms   Of   internationally   accepted   rate-setting
34       methodology  as   it  may  deem   appropriate  and  will   promote  efficiency.   The  rate-setting
35       methodology so  adopted  and  applied  must  ensure  a  reasonable  price  of the  service  and
36      shall be nond+scrininatory.  Tariffs,  rates,  and other charges  set by the Regulatory Units


1       sha++  be  presumed  valid  and  reasonable  unless  a  protest  or  contest  is  filed  with  the
2        Commission.
3                    SEC.  39.  Enhancement  of  Techni.ca/  Competence.  -  The  Commission  shall
4       establish  rigorous training  programs for its  staff for the  purpose  of enhancing the technical
5       competence of the commission in the fottowing areas: evaluation of technical performance
6       and monitoring of compliance with service and performance standards+ performance-based
7       rate-setting   reform,   environmental  standards,   and   such  other  areas  as  will  enable  the
8       Commission to adequately perform its duties and functions.
9                   SEC.  40.  Promol/-on  of  Consdmer  /r)ferests.  -  The  Commission  sharl  handle
10      consumer complaints and ensure the adequate promoton of consumer interests.
1\                   SEC.   41.      Promotion   of   Innovative   Schemes   to   Improve   Efficiency   and
12       «anagemenf of systems. -The commission shall promote innovative schemes, including
13        but  not  limited  to  the  consolidation  and  integration  of water supply and  sanitation  services
14      and serviee providers in the same service area, where it wilt result in improved effieieney,
15       services  expansion,  and  lowering  of costs.to this  end,  the  Commission  shall  establish  and
16       issue  such  rules  and  guidelines  as  may  be  necessary to  create  incentives  to  encourage
17       efficiency and  service expansion,  establish the standards and targets that service providers
18       are  required to meet,  aTid  set the fines  and penalties that wouid be  imposed for failure to
19       meetsuch standards and targets.
20                   SEC.  42.     Proceedings  before  the  Commission.  -  For  the  piirpose  Of  any
21        investigation, inquiry, or proceeding, the commission shall have the requisite powerto:
22                    a)         lss;ue subpoena duces tecum and subpoena ad test.Ificandum`,
23                   b)         Appoint  hearing  officers  to  hear  and  receive  evidence  on  behalf  of  the
24       Commission;
25                     c)           Cite any person or party in contempt for refusal  to appear,  testify,  or comply
26       with an order of the commission on any matter that is the subject of investigation, inquiry, or
27      proceeding before the commission.
28                   SEC. 43.   Orders  and Decisions of the  Commission. -The  orclers,  resolutiions,
29       and decisions of the commission, which  must be reached as  promptly and expeditiously as
30       reasonably  and  fairly  possible,  shall  be  in  writing  and  shall  state  clearly  and  distinctly  the
31       facts and ttie law on which it is based. The commission shalt publish and make available for
32      public  inspection  all  decisior}s  and  final  orders  in  the  adjudication of contested  cases  or
33        applications.
34                  SECA4. Appeals  procedure and  prohibition  Against Injunction. -The orders,
35       rulings,  and  decisions  of the  Commission  are  final  and  executory  unless  appealed  to  the
36      Court of Appeals within  15 days from receipt of notice Of such order,  ruling,  or decision;
37       Provided,  That orders,  rulings,  and  decisions  of the  Commission  approving  tariffs  shall  be


inmedjately exeoutory and may be suspended only upon appeal and fhing of a bond, in an
amount  to   be  fixed   by  the   Commission,   to   answer  for  damages   occasioned   by  the
suspension or stay of execution of such orders, rulings, and decisions.
No  injunction  may  be  issued  by  any  court  or administrative  agency to  restrain  any
proceeding before, or the imptementation or executon of any order, ruling, or decision of the
Commission, except on the basis of a question of law brought before the Court of Appeals
on certiorari. An act or decision of the Commission shall not be invalid merely because of the
defect or irregularity in, or in connection with, the appointment or vacancy in the Office Of the
Chairperson or any other member of the Commission.
SEC. 45. I+'nes and[ Pena/8.es. - The fines and penalties that sha« be inposed by
the Commission for any violation of or non-compliance with this Act or its implementing rules
and  regulations  shall  be prfs/.on  conecci'ona/ or a fine  ranging from  Five  Thousand  Pesos
(5,000.00)   to   Five   Million   Pesos   (P5,000,000.00),   or   both,   at   the   discretion   of   the
Commission.
CHAPTER V
NATIONAL WATER CORPORATION
SEC. 46. CrearJ.on Of the Nati.ona/ Water Coxporaffon. - There is hereby created a
National Water Corporation (NWC), hereirrafter referred to as the NWC, whieh shall be the
corporate arm of the Department of Water. The NWC, as a full-fledged government owned
and controlled corporation, shall be responsible for the establishment of all new facilities and
infrastructure required to ensure and enhance Water Security for the entire country and its
inhabitants, with the full collaboration of the Private Sector and other related agencies Of
Government.
Immediately upon the effectivity of this Act, the NWC, vested with full authority and
responsibility, shall fully mobilize and engage in development activities in the three major
sectors Of the water industry, namely, the 4 } Water Source/Generation; 2) Water and Waste
Treatment; and 3) Water and Sewage Pipeline (conveyance), sectors.
Since water, by its very nature, is a universal public good which cannot be owned by
an individual, a group, nor a corporate entity, all water assets, including support
infrastructure, ttierefore belong to the State. Thus, all contracts entered into by the National
Vvater Corporationt whether on a stand-alone basis, a Joint Venture Arrangement or a
Public-Private Partnership, are in the nature of concession agreements, with a fixed term,
subject to a negotiated extension when necessary, and under the overall supervision of the
Department of Water.
SEC. 47.  Puipose ar]d Oby.ecff.ye. -  The main purpose Of the National Water
Corporation is to accelerate the implementation of vital water supply, distribution, treatment


1       and sanitation prqiects throughout the country, either atone, or with the ccroperatfott of the
2       private sector, through Joint venture Arrangements or public-Private partnerships.  Its
3       principal objective, therefore, is to institutionalize this collaboration between the Government
4       and the private sector in order to design, build, and operate as quickly and as efficiently as
5      possible, the cndcat infrastructure and governance mechanisms thatwilt ensure water
6        Securityforall`
7                    SEC. 48. Corporate powers of the NWC. -As a corporate entity, the NWc shall
8       have the following corporate powers:
9                     a)   To have continuous succession under its corporate name until otherwise
10                            provided by law:
11                      b)   To adoptand use a corporate seal and to change, alter or modifythe same, if
12                             necessary;
13                     c)   Tosueand besued;
14                   d)   To enter into a contract and execute any instrument necessary or convenient for
15                              the purpose for which it is created;
16                     e)   To borrow funds from any source, whether private or public, foreign or domestic,
17                            and issue bonds and other evidence of indebtedness: Prov/.ded That in the case
18                           of bond issues, it shall be subject to the approval of the president of the
19                           Philippines upon recommendation of the secretary of Finance: Prov/.de, further,
20                             That foreign loans shall be obtained in accordance with existing laws, rules and
21                              regulations of the Bangko sentral ng pi[ipinas;
22                     f)    To maintain a provident Fund which consists of contributions made by both the
23                         NWc and its officfaJs and employees and their earnings fen the payment of
24                             benefits to such officials and employees or their heirs under such terms and
25                             conditions as it may prescribe;
26                     g)   To do any act necessary or proper to carry out their purpose for which it is
27                         created, or which, from time to tinre, may be declared by the NWC Board as
28                             necessary, useful, incidental or auxiliary to accomplish its purposes and
29                             objectives; and
30                     h)   Generally, to exercise all the powers of a corporation under the corporation law
31                            insofar as they are not inconsistent with this Act.
32
33                     The Department of water, through the National water corporation, may exercise the
34       power of eminent domain subject to the requirements of the constitution and existing laws.
35       Except as provided herein, no person, corporation or entity other than the NWc shall own
36      any assets invo+ved under its contractua+ obngatiens. Such power of eminent domain shall


I       be exercised sdety for the attainment of waifer seouffty for aH, through the provision of
2       clean, accessible, reliable and affordable water.
3                    SEC. 49. WWC Board ofojrectors. All the powers of the NWc shall be vested and
4       exercised bythe Board of Directors. The Board shall be composed ofa chairman and six (6)
5      members. The secretary of the Department of water (Bow) shaft be the ex offic/a chairman
6       of the Board` The other members of the NWC Board shall include secretary of the
7       Department of Agriculture (DA), the secretary of the Department of Environment and Natural
8       Resources, Department of Interior and Local Governments (DILG), and two members from
9       the private sector, one representing Industry, and the other representing Agn`culture.
10                   The members of the Board shall be appointed by the president of the pAViprines and
11        shall serve a term of six (6) years, exceptthat any person appointed to fill a vacancyshall
12       serve only the unexpired term of his/her predecessor in office. All members of the Board
13       shall be professionals of recognized competence and expertise in the fields of engineering,
14      finance, economies, law, or business management. No member of the Board or any of his
15        relatives within the fourth civil degree of consanguinity or affinity shall have any interest,
16       either as investor, officer or director, in any water generation, distribution or
17       treatmenvsanitation company, or other entity engaged in water sourcing, conveying, treating,
18       orwaste sanitizing as defined bythe water Regulatory commission.
19                    SEC. 50.  Powers and Dutr-es of the Board. The following are the powers and
20       duties of the NWC Board:
21                      a)   To provide strategic direction by formulating medium and long-term strategies
22                             pursuant to the vision, mission, and objectives of the NWC;
23                   b)   To establish the orgarizatiomaJ structure and stafflng patterns of NWc and to
24                             approve the compensation, allowances and benefits of its rank and file;
25                     c)   To fix the compensation of the president of NWc and to appoint and fix the
26                            compensation of the other officers;
27                   d)   For cause, to suspend or remove any corporate ofrtcer appointed by the Board;
28                     e)   To develop and adopt policies and measures for the efficient and effective
29                            management of NWC.
30                   SEC. 51.  Board Meefi.ngs, Per a;ems andA//owances. -The Board shall meet as
31                    often as may be necessary upon the catt of the chairman of the Board or by a
32                   majority of the Board members, The members of the Board shall receive per diem for
33                      each regular or special meeting of the Board actually attended by them, and, upon
34                    the approval of the secretary of the Department of water, such other allowances as
35                     the Board may prescribe.
36                               The presence of at least four (4} members of the Board she+I constitute a
37                      quorum, which shall be necessary for the transaction of any business. The affirmative


1                   vote of a majorfty of three (3) of the members present at a meeting where is a
2                      quorum shall be the decision of the Board of Directors.
3                  SEC. 52. Powers of the president of the National water corporation. The
4       PresidentofNWc shall be appointed by the presidentofthe philippines.  In the absence of
5      the ctiairman, the president shalt preside over Board meetings. The president of NWc shaft
6       be the chief Executive officer of the corporation and shall have the fonowing powers and
7        responsibilities:
8
9
10
11
12
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26
27
28
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31
32
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35
36
37
a)   To execute and administer the policies and measures approved by the Board,
and take responsibility for the efficient discharge of management functions;
b)   To vigorously pursue the attainment of Water Security by devetogivng and
executing project plans and projects within an accelerated schedule in order to
preempt any future water shortage in any part of the country;
c)   To establish close collaboration with other government agencies and with the
private sector by participatng in the nationwide inventory Of water resources,
identifying critical shortage areas, and packaging, financing and executing these
projects in the critical areas expeditiously;
d)   To oversee the preparation of the budget of NWC;
e)   To direct and supervise the operaton and intemat administration of NWC;
f)    Subject to the guidelines and policies set up by the Board, to appoint and the
number and compensation of subordinate officials and employees of NWC; and
for cause, to remove, suspend, or otherwise discipline any subordinate employee
of NWC;
g)   To submit an armua+ report to the Beard on the activities and achievements Of
NWC at the close of each fiscal year and upon approval thereof, submit a copy to
the President of the Philippines and to such other agencies as may be required
by law;
h)   To represent NWC in a+I dealings and transactions with other offices, agencies,
and instrumentalities of the government and with all persons and other entities,
public or private, domestic or foreign; and
i)    To exercise such other powers and duties as may be vested in him by the Board
from time to time.
SEC. 53.  Exemption from the Salary Standardjzatjon Law.-The salaries and
benefits of employees of NWC shall be exempt from R.A. NO. 6758 and shall be fixed
by the Board.


I                                                                                CHAPTER vl
2                                                         TRANSITORY AND FINAL PROVISIONS
3                    SEC. 54. /nterfece w+tti  other Agencf.es. -The  Department of Health  (DOH) shall
4       continue  to  have  the  primary  authority  and   responsibility  for  determining  and  enforcing
5       drinking water quality and sanitation standards. Ttie Department and the commission shaft
6       coordinate  with  DOH  and other appropriate  agencies  in this  regard and  shall ensure  the
7       consistency  of  the  standards  and  targets  that  it  will  set  for  compliance  with  the  DOH's
8       mandated standards.
9                    The  Department  of Environment  and  Natural  Resources  (DENR)  shall  continue  to
10      have primary authority and I-esponsibil+ty for protecting the environment and managing the
11        country'swatersheds.
12                     The  Department of Energy  (DOE)  and  the  National  power  corporation  (NPC)  shall
13       continue   to   have   the   primary   authority   and   responsibility   for  setting   up   and   running
14      hydropower  plants  but  will  ensure  that  any  hydropower  plant  development  plane  arre
15       consistent with the National water Development and Management plan.
16                     The commission shall coordinate with the Department and other concerned agencies
17       for water allocation  and  data  collection,  development projects  relating to water supply and
18       sanitation, and flood control and harnessing and impounding of water.
19                    The   Department  shall  coordinate  with  the   Department  of  Agrieu[ture  to  ensure
20       agricultural  development that  reduces  sources of long-term  pollution for surface water and
21       groundwater,  and  agricultural and  industrial and economic development that employs water
22       efficiency, water recycling or reuse, and the appropriate treatment of wastewater.
23                    The   Department   shall   coordinate   with   the   NatioTra+   Disaster   Risk   Reduction
24       Management council  (NDRRMC) to ensure that its  plans and  designs for flood control, and
25       flood  and  drought  risk  management  are  aligned  with  the  objectives  and  plans  of the  said
26       Department;and
27                   The  Departmerit  shalt  coordinate  with  relevant  govemmeut  agencies,   including
28       LGus,  for  development  projects  and  to  ensure  cross{utting  collaboration  between  and
29       among  all  water  subsectors  and  facilitate  inter-agency  subsector  coordination,  strategic
30       development,   planning,   monitoring,  and  provision  of  technical,   institutional,   and  financial
31       capacfty building support to their different stakeholders at the water sector level.
32                  SEC.  55.  Transfer  of  Rigl.ts   al.d  Obligations.  -  The  Department  and  the
33       Commission  shall,  by virtue of this Act,  be  subrogated  to  all the  rights  and  assume  all  the
34       obligations of the government agencies whose powers and functions  have been absorbed,
35       transferred, or attached to the Department and the commission; Provided, That these are in
36      accordance with the rdes and regulations of the comrfussion on Audit. All affected agencies
37        shall continue to function under their present mandates until the transition is fully in effect.


1                    SEC.56.  Amfapr7.a{forr.  -  The  stlm  of  Two  Bil#oft  Three  Htindfed  Mittien  in
2       Philippine pesos (Php2, 500,000,000) shall be set aside from available funds of the National
3       Treasury and  is  hereby appropriated  and  authorized  to be  released  for the organization of
4       the   Department   and   the   Commission   to   fund   their   initial   operations.   Thereafter,   the
5      Department and  the Commission  shall submit their annual budget to  futty carry out ttieir
6      powers and functions and achieve the objectives of this Act to the office of the president for
7       approval.
8                   SEC.  51.    Implementing  Rules  and  Regulations.  -  The  Department  and  the
9       Commission  shall  promulgate  rules and  regulations to  implement the  provisions  of this Act
10       within 180 days from the effectivfty of this Act.
11                     SEC. 58.   Repea//.ng C/aqse. -All  laws,  decrees, orders,  rules and  regulations,  or
12       other  issuances  or  parts  thereof  inconsistent  with  the  provisions  of  this  Act  are  hereby
13       repealed or modified accordingly. [Provide a more detailed repealing clause?]
14                   SEC.  59.  Separabf-/jfy C/at7se. -tf any portion or provision of this Act is declared
15        unconstitutional, the remainder of this Act or any provision not affected thereby shall remain
16       in force and effect.
17                     SEC.  60.  Effecfiv/.fy  C/aqse.  -This  Act  shall  take  effect  15  days  following  the
18       completion  of  its  pubfication  either  in  the  Cfficiat  Gazette  or  in  a  newspaper  of  general
19        circulation in the philippines.
2 0                     Approved ,