Further Amending Republic Act 6243, Entitled "An Act Creating The Metropolitan Waterworks and Sewerage and For Other Purposes," As Amended
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Further Amending Republic Act 6243, Entitled "An Act Creating The Metropolitan Waterworks and Sewerage and For Other Purposes," As Amended
Presidential Decree No. 1406
June 7, 1978
Case Overview and Summary
Summary of Presidential Decree No. 1406Territorial Jurisdiction and Coverage:
- The Metropolitan Waterworks and Sewerage System (MWSS) shall own and have jurisdiction, supervision, and control over all waterworks and sewerage systems in:
• Cities of Manila, Pasay, Quezon, Cavite, and Caloocan
• Municipalities of Las Piñas, Makati, Malabon, Mandaluyong, Marikina, Navotas, Parañaque, Pasig, Pateros, San Juan, Taguig, and Valenzuela (all of Metropolitan Manila)
• Municipalities of Antipolo, San Mateo, Taytay, Cainta, and Montalban (all of Rizal Province)
• Municipalities of Bacoor, Imus, Kawit, Noveleta, and Rosario (all of Cavite Province)
• Lungsod Silangan, Muntinlupa, and other areas within the development path of expanding Metropolitan Manila, as determined by the MWSS Board (Section 1)
- All other waterworks and sewerage systems currently under MWSS shall be returned, ceded, transferred, and turned over to the respective provinces, cities, and municipalities within 90 days, until they qualify under the Local Water Utilities Administration (LWUA) program (Section 1)
Capital Stock and Indebtedness:
- MWSS is authorized a capital stock of Three Billion Pesos (P3,000,000,000), divided into 30 million shares at P100 par value each (Section 2-A)
- The initial paid-in capital is P491,612,667.10, already subscribed and paid by the Philippine government (Section 2-A)
- The remaining P2,508,387,332.90 shall be subscribed and paid by the Philippine government through:
• P50,824,000.00 representing unpaid MWSS debt to the National Treasury (Section 2-A)
• Balance to be paid from a continuing appropriation from the National Treasury or proceeds from loans, bonds, treasury bills, or notes (Section 2-A)
- Total principal indebtedness of MWSS shall not exceed P3,000,000,000 at any given time (Section 3)
Foreign Loans and Bonds:
- MWSS is authorized to contract foreign loans, credits, and indebtedness from foreign governments, international financial institutions, or fund sources, or issue bonds (Section 5)
- Total outstanding foreign loans and bonds shall not exceed US$600 million or equivalent in other currencies at any given time (Section 5)
Construction, Repair, and Contracts:
- All construction, repair, services, supplies, materials, and equipment contracts shall be awarded to the lowest and most advantageous bidder through public bidding, subject to existing executive orders and presidential issuances (Section 4)
- Emergency works may be undertaken by administration or contract, as authorized by the Board (Section 4)
- Single works costing up to P500,000 may be undertaken by administration or contract after a market canvass, at the option of the General Manager (Section 4)
Gratuity and Transfer of Local Systems:
- Personnel of waterworks systems transferred to local governments shall be absorbed by those local governments, or paid gratuities and retirement benefits (Section 6)
- P3,000,000 is appropriated for separation gratuities, accumulated leaves, and retirement of personnel not absorbed by local governments (Section 6)
- All personnel, records, properties, equipment, assets, obligations, and liabilities of local waterworks systems shall be transferred to respective provinces, cities, and municipalities, except obligations to the national government and other agencies (Section 7)
- P33,500,000 is appropriated for payment of obligations to the national government and other agencies (Section 7)
- In case of disagreement on liabilities, an arbitration committee composed of representatives from the local government, MWSS, and the Commission on Audit shall decide (Section 7)
Repeals and Effectivity:
- All conflicting laws, decrees, executive and administrative orders are modified or repealed accordingly (Section 8)
- The Decree takes effect immediately (Section 9)
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Further Amending Republic Act 6243, Entitled "An Act Creating The Metropolitan Waterworks and Sewerage and For Other Purposes," As Amended
Presidential Decree No. 1406
•June 7, 1978
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 1406
FURTHER AMENDING REPUBLIC ACT 6243, ENTITLED "AN ACT CREATING THE METROPOLITAN
WATERWORKS AND SEWERAGE AND FOR OTHER PURPOSES," AS AMENDED
WHEREAS, under Presidential Decree No. 1269, the territorial jurisdiction of the Metropolitan Waterworks and Sewerage System has been extended to Lungsod Silangan, Muntinlupa, and other areas that may come within the development path of the expanding Metropolitan Manila;
WHEREAS, the continuous growth in terms of population, economic activity, and geographical extent of Metropolitan Manila demands a massive program for the expansion and improvement of its public water supply and sewerage services;
WHEREAS, there is a consequent need for the Metropolitan Waterworks and Sewerage System to enhance its focus on the premier metropolis of the country and to expand its financial base;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby amend certain sections of the Revised Charter of the Metropolitan Waterworks and Sewerage Authority under Republic Act No. 6234, as amended...
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