MEMORANDUM OF AGREEMENT
(WATER EXTRACTION
)
That this Memorandum of Agreement (mOA), made, executed and entered at the City of Tagbilaran, Philippines by and between:
The MUNICIPALITY OF CORELLA, a local government unit duly established, existing and operating in accordance with the laws of the Republic of the Philippines, with principal office at the Town Hall, Corella, Province of Bohol, represented herein by Hon. Vito . Rapal, Municipal Mayor, upon authority of the Sanguniang Bayan Municipality of Corella pursuant to the SB Resolution number 30-04, series of 2004 (copy of which is hereto attached), herein referred to as the "MUNICIPALITY" .
and
BOHOL WATER UTILITIES, INC, a duly organized corporation, valid and existing under the laws of the Philippines, with principal Office at Unit 15 & 16 New Capitol Complex, J.S. Torralba St., Tagbilaran City, Province of Bohol, represented by Mr. Hamelito A. Quiokeles, Vice President for Utilities, herein referred to as "BWUI";
WHEREAS, the MUNICIPALITY has considerable supply from underground water resources that could augment the water requirement of BWUI:
WHEREAS, BWUI have obtained the water rights located at the MUNICIPALITY through the Provincial Government of B0hol and have established and operated five (5) pumping stations and facilities within the territorial jurisdiction of the MUNICIPALITY;
WHEREAS, BWUI cannot adequately supply the water needs of its consumers without tapping the water sources coming from other Local Government Units outside the City of Tagbilaran where BWUI franchise is located.
WHEREAS, the. Philippine Constitution and its Local Government Code of 1991 declare that the Local Government Unit shall have a just share in the development of its natural resources.
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WHEREAS. in anticipation of the overspill development effect of the City of Taghilaran where expansion trend is going to the MUNICIPALITY, it is but fair and just that it shares the benefits derived from the establishment of the five (5) deep wells located within the territorial jurisdiction of the MUNICIPALITY:
NOW THEREFORE, for in consideration of the foregoing premises and the mutual covenants and agreements hereinafter set forth, the
MUNICIPALITY and BWUI mutually agree as follows:
1. BWUI shall supply free of charge potable water in bulk or not more than 15,000 cu. m per month to the MUNICIPALITY through interconnection of pipeline owned by the MUNICIPALITY into the transmission mains of BWUI. Whatever unconsumed water from the 15,000 cu.m. free water per month, such unconsumed balance can no longer be claimed by the MUNICIPALITY for use and consumption in the succediing months.
2. The total of water delivered or infused BWUI into the waterworks system of the MUNICIPALITY shall be measured and based on an inline water flow meter reading. The consumption recorded in the flow meters of BWUI shall be read monthly by BWUI with the representative/s from the MUNICIPALITY
3. BWUI shall ensure that the quantity of the potable water that it will supply shall always be within the PHilippine NAtional Standard or the Worls Healh Organization (WHO) standard.
4. BWUI shall pay the MUNICIPALITY as a Royalty Fee of P.0.25 per cubic meter for the water being extracted leess the free water to the MUNICIPALITY from the existing and operating five (5) deep wells of BWUI beginning upon the effectivity of this agreement
5. In any future establishment of new deep wells, located within the territorial jurisdiction of the MUNICIPALITY, BWUI shall pay to the MUNICIPALITY as Royalty Fee of PHP 0.50 per cubic meter of water being extracted from the new ells during its operation.
6. The Royalty Fee shall be adjusted proportionately whenever BWUI is allowed to increase the water tariff to its customers by the National Water Regulatory Board (NWRB)
7. BWUI shall provide for a free of charge reasonable water service to the owner of the land where the pumping stations are located.
II. MUNCIPALITY's OBLIGATION:
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1. the MUNICPALITY shall have access to use of water by interconnecting pipelines of the MUNICIPALITY into the transmission mains of the BWUI provided that the MUNICIPALITY shall inform in writing and coordinate its tapping with BWUI.
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2 . The MUNICIPALITY shall pay to BWUI for water used in excess of the 15,000 eubic meter per month based bulk rate PHP 8.00 per cubic meter
3. The MUNICIPALITY through the Philippine National Police, shall provide security and protection and for the safety and smooth operation of the water service facilities of BWUI.
4. The MUNICIPALITY shall allow upon request of BWUl to establish new pumping well/s should there be a need in the future in order to augment water supply to the consumers of BWUI provided that BWUI shall have obtain drilling permit from the NWRB
5. The MllNIClPALITY shall provide the necessary counterpart support measures for the sustainability of its water resources by way of municipal ordinances for "water conservation and establishment of watershed areas and to campaign against slash and burn farming or "kaingin".
6. The MUNICIPALITY shall assist BWUl in securing the necessary right/s-ofway and resolving right-of-way problems that may arise as a result of the installation of the transmission mains, pumping stations and other future facilities necessary for the operation of the pumping stations.
7. The MUNICIPALITY shall maintain its waterworks system (piping network, service connections and facilities). System loss and other non-revenue water after the flow meter shall be the responsibility and sole accountability of the MUNICIPALITY.
III. PRICE ADJUSTMENT
I.The selling price of bulk water by BWUI as stipulated in 11.2 above is subject to adjustment (increase or decrease) as follows:
la. If the change in power cost per kwh during the six month period exceeds 5%.
The review is done every six months and the adjusted price per cubic meter shall take effect in the month immediately following the review period. The following fOlTImla shall be used to determine the amount of adjustment per cub'ic meter.
PCA (BWR x 0 70) :x PCC
Whereas:
PCA = Power Cost Adjustment
BWR = Basic Water Rate
PCA PCI-PCO PCO
Whereas:
/ peo The power cost per kwh the offer IS
\ made which is P4.49
/ I
PCI The average power cost per kwh
during the review period
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1.B It' the change or the consumers' price index during the year exeeeds 5% . The review is done every year and the adjusted price per cuhic meter shall take effect on the succeeding year. The following formula shall he used to determine the amount of adjustment pCI' cubic meter.
CPI a -- CPl h ('1'1 h
The average consumer's price index during the year.
The consumer's price index at the _ effectivity of the MOA
2. Based on 1 a and I ti ah()vethL~ adjusted sell ing price per eubic meter which is the basis nr BWUllllunlhly billing tolhL' MUNICIPALITY shall be as follows:
This Agreement or any part or portion thereof shall he modified or revised which can be initiated by both parties only,through formal written agreement between the parties hereto, citing therein the specific clause or provisions to be revised and the corresponding amendment/s thereto.
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BWUI may assign the rights and obligations to this Agreement upon written notice-to the MUNICIPALITY, The assignment shall stipulatation and terms and conditions of this Agreement will bind the assignee.
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VI. TERMS AND EFFECTIVITY OF THE AGREEMENT
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1. The Term of this Agreemen, shall be twenty-five (25) years renewable for another 25 years upon mutual agreementl of the parties.
2 This ageeement shall be effective Janaury 1, 2003 shall remain valid and enforeeable for a period of twenly five (25) years, reckoned from the date of its effectivity, unless sooner or later terminated in accordance with the provisions of this Agreement and applicable laws of the Philippines.
3. f any provision or stipulation of this Agreemnt shall be held or declared invalid by a court of competent authority., the other provisions or stipulations hereof not so declared shall remain in full force and effect until full term of theis Agreement.
4 This agreement shall, uopn signing by both parties, supersede and cause the previous Memorandum of Agreement null and void executed between the Provincial Government of Bohol and the Municipality of Corella to be null and void.
IN WITNESS WHEREOF, the parties have hereunto set their hands this____ day of __________.
THE MUNICIPALITY OF CORELLA BOHOL WATER UTILITIES INC.
By: By:
VITO RAPAL (Signed) HAMELITO A. QUIOKELES (Signed)
Municipal Mayor Vice president, Utilities
Signed in the presence of:
N. B. Signed by two witnesses
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ACKNOWLEDGEMENT
Republic onhe Philippines.)
City of Tagbilaran ) S.S
BEFORE ME on 17 SEP 2004, at Tagbilaran City, Philippines,
personally appeared Vito Rapal,Municipal Mayor. representing the Municipality of Corella, CTC No. 11787352 issued on 1/18/04, Corella, Bohol and Hamelito A. Quiokeles, Vice President for Utilities, with CTC No. 17140846 issued on 1/22/04 at Lapu-Lapu City, known to me and to me known to be the same persons who executed the foregoing instrument and they acknowledged to me that the same is their free and voluntary act and deed as well as those of the organizations they represent.
WITNESS MY HAND AND NOTARIAL SEAL, on the date and the place first above-written.
Doc. No. 246
Page No.50
Book No. CLXVIII
Series of 2004.
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