Officials to lose hold over water districts

Local chief executives may soon no longer exercise control over their water districts. This as the Local Water Utilities Administration proposed to impose major amendments in its charter to increase the authorized capitalization and the local and foreign borrowing capacities of the agency.

The amendment in the Provincial Water Utilities Act, also known as Presidential Decree No. 198, also aimed at limiting the appointing authority of local officials over the members of the water districts' board of directors and managers.

The amendment to the LWUA's charter would be made possible through the bill sponsored by Sen. Juan Ponce Enrile.

The water agency's officials said that the bill will professionalize the management and operations of the local water districts because local officials will no longer control and dictate the members of the water districts. By doing this, members of the water districts' board and their general managers will have security of tenure.

LWUA administrator Lorenzo Jamora said that the amendment will provide potable and safe water supply to the 820 municipalities around the country.

He added that his office is coordinating with Enrile for the drafting and filing of the proposed revised LWUA charter. Enrile's bill contains 10 major provisions to enable the water agency to handle the water system supply in the countryside better.

Jamora said that the amendments include the increase in the authorized capitalization as well as the local and foreign borrowing capacities of LWUA, adding that it is an urgent necessity considering the vital role of improved water supply in the development of the country.

He said the agency's original capitalization of P2.5 billion has already been exhausted and spent in various water supply projects as early as 1991 while its local borrowing cap of P1 billion has been fully availed of in 2003 yet.

Jamora said LWUA still has about $175 million left in its authorized foreign borrowing ceiling of $500 million but this will not be sufficient to meet the growing funding needs for provincial water supply projects. To avail of foreign loans, he added that LWUA has to raise local counterpart funds that will be difficult since the agency has already exhausted its capitalization and local loan ceiling.

With this Enrile propose to increase LWUA's capitalization and local borrowing limit both to P10 billion, and its foreign borrowing ceiling to $2 billion. But he added a provision that to avail of foreign loans, LWUA first need to seek the clearance and approval of the Department of Finance. - Wenna A. Berondo