.

0*

SAN RAFAEL WATER DISTRICT

Poblacion, San Rafael, Bulacan
Tel. No. (044) 892-07-90/ (044) 769-42-71
sanrafaelwd@yahoo.com.ph

EXCERPTS FROM THE MINUTES OF THE REGULAR MEETING ( VIRTUAL) OF THE BOARD OF DIRECTORS OF
SAN RAFAEL WATER DISTRICT HELD AT THE OFFICE OF SAN RAFAEL WATER DISTRICT THRU MESSENGER
DATED APRIL 7, 2021.
PRESENT:
Dir. Socorro V. Valdecantos - Board Chair
Dir. Marivic V. Vergel de Dios - Board Secretary
Dir. Danilo R. Borja - Board Member
Dir. Leonila G. Ramos - Board Member
Dir. Juanita I. Inductivo - Board Member
OTHERS PRESENT:
Engr. Numeriano M. Castañeda Jr. - General Manager

BOARD RESOLUTION NO. 2021-04

SERIES OF 2021

“A BOARD RESOLUTION OPPOSING THE TARIFF RATE INCREASE APPLICATION OF PRIMEWATER

INFRASTRUCTURE CORP. (PWIC) TO THE NATIONAL WATER RESOURCES BOARD (NWRB) AND
AUTHORIZING GENERAL MANAGER NUMERIANO M. CASTAÑEDA, JR. TO FILE THE OPPOSITION IN
BEHALF OF SAN RAFAEL WATER DISITRICT”.
WHEREAS, the San Rafael Water District received the Notice of Hearing from National Water
Resources Board (NWRB) dated March 15, 2021 for Case No. 21-3027 re: Application of Primewater
Infrastructure Corp. (PWIC) for Certificate of Public Convenience to operate and maintain a waterworks
system within the Municipality of San Rafael, Bulacan;
WHEREAS, the proposed Tariff Rates (with VAT) for the various concessionaires’ categories
requires the substantial and procedural approval of the San Rafael Water District Board of Directors as
embedded in the Joint Venture Agreement (JVA) between Primewater Infrastructure, Corp. (PWIC) and
San Rafael Water District specifically Section 8. Tariff, states:
“Section 8.1.3 of the General Principles. Substantial and procedural requirements for
approval of tariffs of water districts, as specified in Section 37 and 63 of PD 198, as
amended and Letter of Instruction (LOI) 700 dated June 1, 1978, are complied.”

WHEREAS, a reading of the provisions in Section 8.1.3 of the JVA states that:

Section 37 of PD 198 states that “the district may sell water under its control, under
schedules of rates and charges as maybe determined by the Board, to any and all water
users within the district. Xxx The district, as far as practicable, shall fix such rates and
charges for water xxx.”
Section 63 of the said law states that “The rates or charges established by such local district,
after hearing shall have been conducted for the purpose, shall be subject to review by the
Administration to establish compliance with the above-stated provisions,”

LOI 700 (5) states that, “The water district concerned shall conduct public hearings prior
to any proposed increase in water rates.”

WHEREAS, the above-said requirements were not complied with by PWIC before the application
of the proposed tariff rate increase, as the San Rafael Water District and its Board of Directors were
neither given information nor copy of the PWIC’s application of the proposed tariff rate. Hence, the
Board of Directors has not reviewed and approved any increase in tariff rates nor issued any resolution
to that effect; much less, the conduct of any public hearing for the purpose;
WHEREAS, in Opinion No. 087, s. 2020, the Office of the Government Corporate Counsel
(OGCC), in response to the request for opinion by Meycauayan Water District (MWD) on the Water Rate
Application of Primewater, copy attached, enunciated that:
 Page 2 of Board Resolution No. 2021-04, s. 2021

“Accordingly, it is the Board of MWD that must first determine and approve the
appropriate rates or charges based on the application of water rate adjustment by
Primewater. MWD through its authorized representative can only sign the conforme or
signify its consent to the application if the rate adjustments applied for were duly approved
by the MWD Board through the appropriate board resolution.” (Underscoring supplied).
WHEREAS, under Section 8.2. Agreed Tariff Rates, Sub Section 8.2.1, states that, “The parties
agree that for the first five years, there shall be increase in Basic Tariff of 54% for all blocks and
consumer categories, of which 12% pertains to VAT. This shall be implemented on a staggered basis as
follows:
1st year 0.0%
3rd year 12.0%
4th year 42.0%

WHEREAS, Initial analysis of the proposed tariff rates shows that the proposed increase equates
to 62% instead of 42% as agreed in the JVA, computed as follows:

Base Tarif Rate (min.0-10/ m3) : P 190.00

Proposed Increase : 42%
Total P 269.80
Value Added Tax : 12%
P302.17

Basic Tariff Rate (min.0-10/ m3) : P 190.00

Proposed Increase : P 30.60/m3
Increase (19/30.60) : 62%

WHEREAS, on the timeliness to oppose the Tariff Rate Increase Application, San Rafael Water
District only received the National Water Resources Board’s Notice of Hearing on March 15, 2021 at 8:50
in the morning, the same day and time that the initial Hearing of the case was to be held at NWRB-WUD
Conference Room, 8th Flr, NIA Bldg., EDSA, Quezon City, hence its inability to attend the proceedings on
said date;

WHEREAS, San Rafael Water District (SRWD) was never duly informed of the scheduled Hearing
of March 15, 2021, it was thus denied its right to due process of law and to essentially contest the merit
of the subject CPC Application of Primewater, Inc. This, therefore, rendered the entire 15 March 2021
proceedings in this case as NULL and VOID, if so held, without due and timely notice to SRWD;

WHEREAS, foregoing premises considered, SRWD respectfully asks the Office of the Government
Corporate Counsel (OGCC) to declare the March 15, 2021 initial Hearing of this case to be NULL and
VOID and without merit. It likewise prays that further proceedings on Primewater’s CPC Application be,
accordingly, SUSPENDED, pending due and timely notice to SRWD of the subsequent Hearings and
proceedings of this case;

RESOLVED, as it is hereby RESOLVED, that the Board of Directors unanimously opposes the tariff
rate increase application submitted by the Primewater Infrastructure Corp. to the National Water
Resources Board, and authorizes General Manager Numeriano M. Castañeda, Jr. to file the opposition in
behalf of San Rafael Water District;

RESOLVED FINALLY, that copy of this resolution be furnished all authorities concerned for their
information and corresponding action;

UNANIMOUSLY APPROVED by the undersigned members of the board this 7 th April, 2021

SOCORRO V. VALDECANTOS
Board Chair

MARIVIC V. VERGEL DE DIOS LEONILA G. RAMOS

Board Secretary Board Member

DANILO R. BORJA ENGR. JUANITA I. INDUCTIVO

Board Member Board Member
 Page 3 of Board Resolution No. 2021-04, s. 2021

CERTIFICATION

I hereby certify that the forgoing resolution was adopted and approved during the regular
meeting of the Board of Directors held at San Rafael Water District Office, Poblacion, San Rafael, Bulacan
on April 7, 2021.

MARIVIC V. VERGEL DE DIOS

Board Secretary

Attested by:

SOCORRO V. VALDECANTOS
Board Chair