ILOILO City – Was the city government wrong in issuing a franchise to South Balibago Resources Inc. (SBRI) in 2016 to distribute water to Jaro district’s waterless villages and subdivisions?
According to the Department of the Interior and Local Government (DILG), local governments do not have the authority to grant water and sanitation franchise.
DILG issued this opinion as a reply to the query of Councilor R Leone Gerochi on the matter.
In DILG Opinion No. 18, Undersecretary Austere Panadero said only the National Water Resources Board (NWRB) can issue a water and sanitation franchise. He cited Presidential Decree (PD) 1076 or the Water Code of the Philippines – the law that governs ownership, appropriation, utilization, exploitation, development, conservation, and protection of water resources.
The Metro Iloilo Water District (MIWD) questioned the granting of franchise to SBRI. The case is now pending in court.
Section 4 of PD 1076 stated that the application for water permit “shall be filed directly with Board or deputized agents designated the Board…”
“Clearly, granting of water permits is within the competence of the NWRB, not in the local government units,” according to the DILG.
The participation of local governments is merely confined in the processing, posting and sending of notices of application/petition, it added.
As to the argument that the city government has the power to enact ordinances granting franchises anchored on Section 458 (a)(3) of Republic Act 7160 (Local Government Code) which states that the Sangguniang Panlungsod has the power to “enact ordinances granting franchise and authorizing the issuance of permits or licenses, upon such conditions and for such purposes intended to promote the general welfare of the inhabitants”, DILG clarified that such authority in the nature of an exercise of police power.
“…(I)t behooves to the local governments and their legislative bodies to act in conformity with the will of the State that is dictated through the legislative enactment of the Water Code of the Philippines and the Clean Water Act…,” stressed the DILG.
The Philippine Clean Water Act of 2004 or Republic Act 9275 is the law governing water quality management.
Councilor Gerochi told Panay News he would seek further clarification from the DILG.
“We are not implying nga sa power sang franchise alone, maka-distribute na sila (SBRI) tubig,” said Gerochi.
The franchise should only be construed as a permit to do business, he said.
“Buot silingon sina, ma-issue kami franchise but subject to compliance with other national laws,” said Gerochi./PN
