EXECUTIVE ORDER NO.

869 February 2, 1983

AMENDING EXECUTIVE ORDER NO. 5 RENAMING T!E RURA"
#ATER#OR$% A%%OCIATION% A% RURA" #ATER#OR$% AND
%ANITATION A%%OCIATION% AND FOR OT!ER &UR&O%E%
WHEREAS, the Rural Water Supply and Sanitation Program will utilize the Rural
Waterworks Associations (RWA's in !ringing sanitation ser"ice to the rural areas#
WHEREAS, there is a need to empower the RWA's to undertake sanitation $unctions and
to rename them as Rural Waterworks and Sanitation Associations (RWSA's#
WHEREAS, the Rural Waterworks %e"elopment &orporation, in undertaking
de"elopment pro'ects prescri!ed in E(ecuti"e )rder *o+ ,--, now re.uires to !e e(empt
$rom Section /0 o$ Presidential %ecree *o+ 11-- to ena!le itsel$ and the RWSA's to pay
their inde!tedness and other o!ligations in $urtherance o$ the declared national policy#
*)W, 2HERE3)RE, 4, 3ER%4*A*% E+ 5AR&)S, President o$ the Philippines, !y
"irtue o$ the powers "ested in me !y the &onstitution, do here!y order and decree6
Sec+ 1+ Section , o$ E(ecuti"e )rder *o+ ,-- is here!y amended to read as $ollows6
7Sec+ ,+ Speci$ic Powers+ 2he &orporation is here!y authorized and empowered + + +
(h 2o promote and enhance the capa!ility o$ local go"ernments in implementing their
rural water supply programs !y pro"iding loans $or the purpose o$ $inancing their
procurement o$ e.uipment and materials in pursuing total water supply co"erage o$ their
areas# and
(i 2o report annually to the President o$ the Philippines + + +
Sec+ /+ Section 1/ o$ E(ecuti"e )rder *o+ ,-- is here!y amended to read as $ollows6
7Sec+ 1/+ Earnings o$ the &orporation Earnings which may !e realized $rom the
operations o$ the &orporation shall accrue to and !e automatically appropriated as part o$
the corporate earnings o$ the &orporation, any pro"ision o$ law to the contrary
notwithstanding+
2o ena!le RW%& to pay its inde!tedness and o!ligations in $urtherance and e$$ecti"e
implementation o$ the policy enunciated in this E(ecuti"e )rder, the RW%&,
notwithstanding Section /0 o$ Presidential %ecree *o+ 11--, is here!y declared e(empt6
(a 3rom payment o$ all ta(es, duties, $ees, imposts, charges, costs and restrictions to the
Repu!lic o$ the Philippines, its pro"inces, cities, municipalities, and $iling and ser"ice
$ees and charges or costs in any court or administrati"e proceedings in which it may !e a
party#
(! 3rom all income ta(es, $ranchise ta(es and realty ta(es to !e paid to the *ational
8o"ernment, its pro"inces, cities, municipalities and other go"ernment agencies and
instrumentalities# and
(c 3rom all import duties, compensating ta(es and ad"ance sales ta(, whar$age $ees on
import o$ $oreign goods re.uired $or its operations and pro'ects+7
Sec+ 0+ Section 1, o$ E(ecuti"e )rder *o+ ,-- is here!y amended to read as $ollows6
7Sec+ 1,+ 9oard o$ %irectors All powers o$ the &orporation shall !e "ested in and
e(ercised !y the 9oard o$ %irectors, hereina$ter re$erred to as the 9oard, which shall !e
composed o$ the 5inister o$ Human Settlements as &hairman and as mem!ers, the
5inister o$ Pu!lic Works and Highways, the 5inister o$ :ocal 8o"ernment, the 5inister
o$ Health, the E(ecuti"e %irector o$ the *ational Water Resources &ouncil, the 8eneral
5anager o$ :ocal Water ;tilities Administration, the Administrator o$ the *ational
Electri$ication Administration and the 8eneral 5anager o$ the &orporation or their duly
authorized representati"es+7
Sec+ <+ Section /1 o$ E(ecuti"e )rder *o+ ,-- is here!y amended read as $ollows6
7Sec+ /1+ Secretary o$ the 9oard 2here shall !e a &orporate Secretary who shall !e
appointed !y the 9oard o$ %irectors+7
Sec+ ,+ Section /= o$ E(ecuti"e )rder *o+ ,-- is here!y amended to read as $ollows6
7Sec+ /=+ )rganization &ooperati"e, non>pro$it, non>stock associations to !e known as
Rural Waterworks and Sanitation Associations (RWSA's may !e organized $or the
purpose o$ supplying water and sanitation ser"ices in the rural areas+
All preceding re$erences to RWA's shall hereto$ore !e amended to read as RWSA's+7
Sec+ ?+ 2here will !e added a new section to E(ecuti"e )rder *o+ ,--, which shall !e
known as section 00 and shall read as $ollows6
7Sec+ 00+ E(emption $rom Securities and E(change &ommission# E(emption $rom ta(es,
imposts, duties, $ees+
(a RWSA's shall !e e(empt $rom regulation !y the Securities and E(change
&ommission+
2he pro"isions o$ the Securities Act shall not apply to any note, !ond or other e"idence o$
inde!tedness issued !y any RWSA or to any mortgage, deed o$ trust, indenture or other
instrument e(ecuted to secure the same+ 2he pro"isions o$ said Act shall not apply to the
issuance o$ mem!ership certi$icates or any e"idence o$ mem!er or patron interest !y the
RWSA's+
(! 2he RWSA's shall !e e(empt $rom all *ational 8o"ernment, local go"ernment and
municipal ta(es and $ees, including any $ranchise $iling, recordation, license or permit
$ees or ta(es, charges or costs in"ol"ed in any court or administrati"e proceeding in
which it may !e a party, and o$ all duties or imposts on $oreign goods ac.uired $or its
operations+
Sec+ -+ Section 0? o$ E(ecuti"e )rder *o+ ,-- is here!y amended to read as $ollows6
7Sec+ 0?+ 3ranchising Power %elegated to the RW%& 2he power to grant and repeal, alter
or amend all $ranchises to supply waterworks ser"ice is here!y delegated to the RW%&,
whose 9oard o$ %irectors shall, acting as a &ommission, administer the pro"isions o$ this
&hapter# Pro"ided, 2hat no $ranchise shall !e altered, conditioned, repealed or cancelled,
and no $ranchise shall !e granted, without $irst a$$ording the holder thereo$, or the
contending applicants there$or, i$ such !e the case, and any other interested parties
opportunity $or hearing+7
Sec+ =+ Section 0- o$ E(ecuti"e )rder *o+ ,-- is here!y repealed and in lieu thereo$ a
new section shall read as $ollows6
7Sec+ 0-+ Rate Re"iew A:: RWSA's, including other waterworks utilities operating
within the area o$ responsi!ility o$ RW%&, shall $i(, maintain, implement and collect
rates, $ees, tools and other charges and terms and conditions $or ser"ice, su!'ect to the
re"iew and appro"al o$ the RW%&+
Sec+ @+ :egal &ounsel 4t shall !e the duty o$ the Solicitor 8eneral to represent RW%& in
any 'udicial proceeding i$, $or special reasons, the 8eneral 5anager shall re.uest his
inter"ention+
Sec+ 1A+ Separa!ility o$ Pro"isions 4$ any pro"ision o$ this E(ecuti"e )rder or the
application o$ such pro"ision to any person or circumstance is declared in"alid, the
remainder o$ the E(ecuti"e )rder or the application o$ such pro"ision to other persons or
circumstances shall not !e a$$ected !y such declaration+
Sec+ 11+ Repealing &lause All laws, decrees, e(ecuti"e orders, rules and regulations
inconsistent herewith are here!y repealed or modi$ied accordingly+
Sec+ 1/+ E$$ecti"ity 2his E(ecuti"e )rder shall take e$$ect immediately+
%one in the &ity o$ 5anila, this /nd day o$ 3e!ruary, in the year o$ )ur :ord, *ineteen
Hundred and Eight>2hree+