[ Commonwealth Act No. 125, November 05, 1936 ]
AN ACT TO CREATE A REVOLVING FUND OF TWO MILLION PESOS FOR THE CONSTRUCTION OF WATERWORKS IN THE PHILIPPINES.
Be it enacted by the National Assembly of the Philippines:
Section 1. The sum of two million pesos is hereby appropriated out of any funds in the Philippine Treasury not otherwise appropriated, to constitute a revolving fund for the construction of provincial and municipal waterworks systems in the Philippines, which shall be expended under the supervision of the Secretary of Public Works and Communications. The cost of waterworks systems constructed under this Act shall be reimbursable within a period not exceeding twenty years with interest at the rate of four per centum per annum, payable annually. To administer said waterworks, there is hereby created a board to be known as the National Waterworks Board, composed of the Secretary of Pubic Works and Communications as chairman, and the Secretary of Finance and the Secretary of the Interior as members, which Board shall fix the rates to be collected from the water consumers: Provided, That the rates fixed by said Board shall not be subject to revision by the Public Service Commission.
Section 2. It shall be the duty of the Director of Public Works to make an examination of streams, springs, lakes or other possible sources of supply for waterworks to be constructed under this Act and to make surveys and investigations for the purpose of determining the feasibility of carrying out any project and recommend to the National Waterworks Board, through the Secretary of Public Works and Communications, the construction of such projects which, from the results of the said surveys and investigations, would produce sufficient income to repay their cost of construction within a period of not more than twenty years: Provided, That the cost of the preliminary surveys and investigations shall be borne by the municipality or province concerned.ℒαwρhi৷
Whenever the National Waterworks Board should deem it advisable to construct any project recommended by the Director of Public Works, it shall authorize the release of such sum or sums from the revolving fund herein created as are necessary for construction purposes: Provided, That the province, municipality or municipalities concerned in a project shall appropriate such part of the estimated cost thereof as in the opinion of said Board the condition of its finances warrants: Provided, further, That the construction of a project shall not be started until the provincial board, municipal council or councils concerned shall have adopted a resolution guaranteeing the annual payment of such amounts as are calculated to reimburse the funds invested by the National Government with interest at four per centum per annum, within a period of not more than twenty years: And provided, finally, That if the regular income of a municipality is not sufficient to warrant such guaranty, said municipality shall levy a special assessment upon the real estate especially benefited by the waterworks, pursuant to the provisions of Act Numbered Three thousand nine hundred and ninety-five, as amended, to provide a part of the funds required for that purpose.
Section 3. The provincial treasurer of the province or the municipal treasurer of the municipality wherein a water-works system under this Act is constructed shall be in charge of the collection of the water charges and with the approval of the Secretary of Public Works and Communications, he shall appoint duly bonded collectors at salaries which shall be chargeable to waterworks collections or receipts. After deducting the expenses for the maintenance and operation of a system, including the salaries of the necessary personnel, the provincial or the municipal treasurer, as the case may be, shall turn over the balance of collections to the Treasurer of the Philippines to be applied as annual reimbursement of the sum or sums invested from the revolving fund herein created, including interest of four per centum per annum,: Provided, That if the collections turned over to the Treasurer of the Philippines, in any year, are not sufficient to cover the amount corresponding to that year for the reimbursement of the sum or sums invested from the revolving fund and interest of four per centum per annum, the provincial board, municipal council or councils concerned shall appropriate the necessary funds to cover the deficiency.
The annual reimbursement and interest paid shall form part of the revolving fund herein created and shall be available for investment in the construction of other waterworks systems under this Act.
Section 4. Except as provided in section five hereof, the district engineer of the province concerned shall be in charge of the operation of the waterworks systems constructed under this Act subject to such regulations as may be promulgated by the Director of Public Works and approved by the National Waterworks Board, and to the provisions of Act Numbered Thirty-nine hundred and seventy-eight. The necessary personnel for the maintenance and operation of systems shall be appointed by the Director of Public Works with the approval of the Secretary of Public Works and Communications, and the cost of such maintenance and operation, including the salaries of the necessary personnel, shall be charged against the receipts and collections from the said system.
Section 5. When a province or a municipality has completely reimbursed the National Government the total amount invested by the latter in a waterworks system constructed in accordance with the provisions of this Act, including interest at four per centum per annum, the National Water-works Board shall so certify to the President of the Philippines who, by means of an Executive Order, shall turn over the system to the province or municipality concerned, for administration, maintenance, and operation in accordance with the existing regulations and with the provisions of section nineteen hundred and sixteen of the Administrative Code as amended by Act Numbered Thirty-nine hundred and seventy-eight: Provided, That the said province or municipality may, at any time after construction work is completed and before the twenty-year period of reimbursement provided in this Act expires, totally reimburse the funds invested in the system by the National Government, including interest at four per centum per annum.
Section 6. When all the waterworks systems contemplated to be constructed under this Act have been completed and the cost thereof duly reimbursed, the revolving fund created under this Act, including the accrued interest and earnings, shall revert to the general funds in the Treasury of the Philippines.
Section 7. The construction of waterworks systems under this Act shall be carried out in accordance with section nineteen hundred and seventeen of the Administrative Code.
Section 8. The sum appropriated in this Act shall be released only upon certification by the Auditor General and the Secretary of Finance to the President of the Philippines that there are sufficient funds derived from current revenues in excess of the authorized appropriations for the ordinary operating expenses of the National Government available in the Treasury of the Philippines to warrant such release.
In case the Auditor General and the Secretary of Finance cannot issue such certification due to lack of sufficient funds in the Treasury of the Philippines, the President of the Philippines is hereby authorized to issue in the name and in behalf of the Government of the Commonwealth of the Philippines bonds in the amount of two million pesos. The proceeds of the sale of such bonds shall be used for the purposes of this Act. The bonds shall be issued in the manner and under the conditions provided in the following sections.
Section 9. The bonds so authorized to be issued shall bear such date and be in such form as the President of the Philippines may determine and shall run for such time, not exceeding thirty years from the date of issue, and shall bear such rate of interest as he may determine. The bonds may be coupon bonds or registered bonds, convertible, in the discretion of the President of the Philippines, into either form, and in the case of the issue or transfer of any registered bonds the same may be registered in the Treasury of the Philippines. Both principal and interest shall be payable in the Treasury of the Philippines in legal tender currency of the United States or in legal tender currency of under the Philippines at the discretion of the Treasurer of the Philippines. Said bonds shall be exempt from taxation by the Government of the Commonwealth of the Philippines or of any political or municipal subdivision thereof, which fact shall be stated upon their face.
Section 10. The President of the Philippines is further authorized to sell said bonds through the Treasurer of the Philippines on such terms as are most favorable to the Government of the Commonwealth of the Philippines, and the said Treasurer shall deposit the proceeds of the sales thereof either in the Philippine Treasury or with an authorized depository of the Government of the Commonwealth of the Philippines.
Section 11. A sinking fund is hereby created for the payment of the bonds issued under the provisions of this Act in such a manner that the total amount thereof at each annual due date of the bond issued shall be equal to the total of an annuity of nineteen hundred and thirty-seven pesos and thirteen centavos for each one hundred thousand pesos of bonds outstanding, accrued at the rate of interest of three and one-half per centum per annum. Such sinking fund shall be under the custody of the Treasurer of the Philippines who shall invest it in such manner as the Secretary of Finance may approve, in accordance with the provisions of Act Numbered Three thousand and fourteen which governs the investment of sinking funds; shall charge all the expenses of such investment to said sinking fund, and shall credit to the same the interest on investments and other income accruing to it.
Section 12. A standing annual appropriation is hereby made out of the general funds in the Philippine Treasury not otherwise appropriated, of such sums as may be necessary to provide for the sinking fund mentioned in the last preceding section and the interest on the bonds issued by virtue of this Act.
Section 13. An appropriation is hereby made out of the general funds in the Philippine Treasury not otherwise appropriated of a sum sufficient to cover the expenses of the issue and sale of the bonds issued by virtue of this Act.
Section 14. This Act shall take effect upon its approval.
Approved, November 5, 1936.
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