Vol. XXI, No. 228 [ Business World Online ]
Friday, June 20, 2008 | MANILA, PHILIPPINES
THE SENATE committee on public works has approved a measure that seeks to increase the capital stock of the Local Water Utilities Administration (LWUA).
Under the measure, the authorized capital will be raised to P25 billion from P2.5 billion. This is similar to House Bill (HB) 4114 passed on third and final reading on June 2.
The bill seeks to amend Presidential Decree 198 that created the LWUA as a specialized lending institution for water utilities.
Committee chairman Senator Ramon "Bong" B. Revilla, Jr. said in a statement that the measure will help "improve the standard of living."
"Residents from far-flung villages in the rural areas will no longer face the risk of fetching and using water from community wells and springs that may be unsafe," he added.
Mr. Revilla cited a recent study of the United Nations Development Program which stated that more than 10 million Filipinos have no access to potable water, while more than 21 million individuals lack basic sanitation.
Higher borrowing limit
The committee also adopted HB 4114, authored by Ilocos Sur Rep. Eric D. Singson (2nd district), which seeks to increase LWUA’s domestic and foreign borrowing authority to an aggregate level of $900 million, upon the approval of Department of Finance and the Bangko Sentral ng Pilipinas.
LWUA’s domestic and foreign borrowings originally set in 1973 were limited to P1 billion and $500 million, respectively.
LWUA Administrator Orlando C. Honrade had said that almost 50% of local communities, especially in the Visayas and Mindanao, do not have access to clean water. — Bernard U. Allauigan
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