Republic Act No 4850

REPUBLIC ACT NO.
4850 July 18, 1966
AN ACT CREATING THE LAGUNA LAKE DEVELOPMENT AUTHORITY, PRESCRIBING ITS POWERS,
FUNCTIONS AND DUTIES, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES.
CHAPTER I
DECLARATION OF POLICY AND CREATION OF AUTHORITY
Section 1. Declaration of Policy. It is hereby declared to be the national policy to promote, and
accelerate the development and balanced growth of the Laguna Lake area and the surrounding
provinces, cities and towns hereinafter referred to as the region, within the context of the national and
regional plans and policies for social and economic development and to carry out the development of
the Laguna Lake region with due regard and adequate provisions for environmental management and
control, preservation of the quality of human life and ecological systems, and the prevention of undue
ecological disturbances, deterioration and pollution.
Sec. 2. Laguna Lake Development Authority created. For the purpose of carrying out and effecting the
declared policy, as provided for in Sec. one hereof, there is hereby created a body corporate to be
known as the Laguna Lake Development Authority, hereinafter referred to as the Authority, which shall
be organized within one hundred twenty (120) days after the approval of this Act. The Authority shall
execute the powers and functions herein vested and conferred upon it in such a manner as will, in its
judgment, aid to the fullest possible extent in carrying out the aims and purposes set forth below. This
Act may be known as the Laguna Lake Development Authority Act of 1966.
Sec. 3. Location of principal office. The Authority shall maintain its principal office at a convenient place
within the region, but it may have branch offices in such other places as are necessary for the proper
conduct of its business.
Sec. 4. Special Powers and Functions. The Authority shall exercise perform the following powers and
functions:
(a) To make a comprehensive survey of the physical and natural resources and potentialities of the
Laguna Lake region particularly its social and economic conditions, hydrologic characteristics, power
potentials, scenic and tourist spots, regional problems, and on the basis thereof, to draft a
comprehensive and detailed plan designed to conserve and utilize optimally the resources within the
region particularly Laguna de Bay to promote the region's rapid social and economic development and
upon approval by the National Economic and Development Authority (NEDA) Board of such plan, to
implement the same including projects in line with said plan: Provided, That implementation of all
fisheries plans and programs of the authority shall require prior consensus of the Bureau of Fisheries
and Aquatic Resources to ensure that such plans and programs are consistent with the national
fisheries plans and programs. For the purpose of said survey, public agencies shall submit and private
entities shall provide necessary data except such data which under existing laws are deemed inviolable.
(b) To provide the machinery for extending the necessary planning, management and technical
assistance to prospective and existing investors in the region;cralaw
(c) To make recommendation to the proper agencies on the peso or dollar financing, technical support,
physical assistance and, generally, the level of priority to be accorded agricultural, industrial and
commercial projects, soliciting or requiring direct help from or through the government or any of its
instrumentalities;cralaw
(d) To pass upon and approve or disapprove all plans, programs, and projects proposed by local
government offices/agencies within the region, public corporations, and private persons or enterprises
where such plans, programs and/or projects are related to those of the Authority for the development of
the region as envisioned in this Act. The Authority shall issue the necessary clearance for approved
proposed plans, programs, and projects within thirty days from submission thereof unless the
proposals are not in consonance with those of the Authority or that those will contribute to the
unmanageable pollution of the Laguna Lake waters or will bring about the ecological imbalance of the
region: Provided, further, That the Authority is hereby empowered to institute necessary legal
proceeding against any person who shall commence to implement or continue implementation of any
project, plan or program within the Laguna de Bay region without previous clearance from the
Authority: Provided, furthermore, That any local government office, agency, public corporation, private
person, or enterprise whose plans, programs and/or projects have been disapproved by the Authority
may appeal the decision of the Authority to the NEDA within fifteen (15) days from receipt of such
disapproval whose decision on the matter shall be final. Reasonable processing fees as may be fixed by
the Authority's Board of Directors shall be collected by the Authority for the processing of such plans,
programs and/or projects: Provided, finally, The expansion plans shall be considered as new plans
subject to review of the Authority and to payment of the processing fees.
The Authority and national and local government offices, agencies and public corporations shall
coordinate their plans, programs, projects and licensing procedures with respect to the Laguna Lake
region for the purpose of drawing up a Laguna Lake development plan which shall be binding upon all
parties concerned upon approval of the NEDA board.
(e) To engage in agriculture, industry, commerce, or other activities within the region which may be
necessary or directly contributory to the socio-economic development of the region, and, for this
purposes, whether by itself or in cooperation with private persons or entities, to organize, finance,
invest in, and operate subsidiary corporations: Provided, That the Authority shall engage only, unless
public interest requires otherwise, in those activities as are in the nature of new ventures or are clearly
beyond the scope, capacity, or interest or private enterprises due to consideration of geography,
technical or capital requirements, returns on investment, and risk;cralaw
(f) To plan, program finance/or undertake infrastructure projects such as river, flood and tidal control
works, waste water and sewerage works, water supply, roads, portworks, irrigation, housing and related
works, when so required within the context of its development plans and programs including the
readjustment, relocation or settlement of population within the region as may be necessary and
beneficial by the Authority: Provided, That should any project be financed wholly or in part by the
Authority, it is hereby authorized to collect reasonable fees and tolls as may be fixed by its Board of
Directors subject to the approval of the NEDA Board from users and/or beneficiaries thereof to recover
costs of construction, operation and maintenance of the projects: Provided, further, That if the Authority
should find it necessary to undertake such infrastructure projects which are classified, as social
overhead capital projects as determined by the NEDA, the Authority shall be authorized to receive
financial assistance from the government in such amount as may be necessary to carry out the said
projects subject to such terms and condition that may be imposed by the government, upon
recommendation of the NEDA Board: Provided, finally, That such amount as may be necessary for the
purpose is hereby authorized to be appropriated out of the funds of the National Treasury not otherwise
appropriated.
(g) To make an annual report to the stockholders regarding the operation of the Authority more
particularly a statement of its financial conditions, activities undertaken, progress of projects and
programs and plans of actions for the incoming years: Provided, however, That a majority of the
stockholders may require the Authority to submit report or reports other than the annual report herein
required, which report must be submitted within a period of thirty (30) days from notice thereof;cralaw
(h) To lend or facilitate the extension of financial assistance and/or act as surety or guarantor to
worthwhile agricultural, industrial and commercial enterprises;cralaw
(i) To reclaim or cause to the reclaimed portions of the Lake or undertake reclamation projects and/or
acquire such bodies of land from the lake which may be necessary to accomplish the aims and
purposes of the Authority subject to the approval of the NEDA Board: Provided, That the land so
reclaimed shall be the property of the Authority and title thereto shall be vested in the
Authority: Provided, further, That the resulting lake shore shall continue to be owned by the national
government.
(j) The provisions of existing laws to the contrary notwithstanding, to engage in fish production and
other aqua-culture projects in Laguna de Bay and other bodies of water within its jurisdiction and in
pursuance thereof to conduct studies and make experiments, whenever necessary, with the
collaboration and assistance of the Bureau of Fisheries and Aquatic Resources, with the end in view of
improving present techniques and practice. Provided, That until modified, altered or amended by the
procedure provided in the following sub-paragraph, the present laws, rules and permits or
authorizations remain in force;cralaw
(k) For the purpose of effectively regulating and monitoring activities in Laguna de Bay, the Authority
shall have exclusive jurisdiction to issue new permit for the use of the lake waters for any projects or
activities in or affecting the said lake including navigation, construction, and operation of fishpens, fish
enclosures, fish corrals and the like, and to impose necessary safeguards for lake quality control and
management and to collect necessary fees for said activities and projects: Provided, That the fees
collected for fisheries may be shared between the Authority and other government agencies and
political sub-divisions in such proportion as may be determined by the President of the Philippine upon
recommendation of the Authority's Board: Provided, further, That the Authority's Board may determine
new areas of fisheries development or activities which it may place under the supervision of the Bureau
of Fisheries and Aquatic taking into account the overall development plans and programs for Laguna de
Bay and related bodies of water: Provided, finally,That the Authority shall subject to the approval of the
President of the Philippines promulgate such rules and regulations which shall govern fisheries
development activities in Laguna de Bay which shall take into consideration among others the following:
socioeconomic amelioration of bonafide resident fisherman whether individually or collectively in the
form of cooperatives, lakeshore town development, a master plan for fishpen construction and
operation, communal fishing ground for lakeshore town residents, and preference to lakeshore town
residents in hiring laborers for fishery projects.
(l) To require the cities and municipalities embraced within the region to pass appropriate zoning
ordinances and other regulatory measures necessary to carry out the objectives of the Authority and
enforce the same with the assistance of the Authority.
(m) The provisions of existing laws to the contrary notwithstanding, to exercise water rights over public
waters within the Laguna de Bay region whenever necessary to carry out the Authority's projects;cralaw
(n) To act in coordination with existing governmental agencies in establishing water quality standards
for industrial, agricultural and municipal waste discharges into the lake and to cooperate with said
existing agencies of the government of the Philippines in enforcing such standards, or to separately
pursue enforcement and penalty actions as provided for in Sec. 4(d) and Sec. 39-A of this
Act: Provided, That in case of conflict on the appropriate water quality standard to be enforced such
conflict shall be resolved thru the NEDA Board;cralaw
(o) To develop water supply from ground and/or lake water resources for municipal, agricultural and
industrial usages, in coordination with the National Water Resources Council created by Presidential
Decree No. 424 dated March 28, 1974 or its successors in interests, and to enter into agreements with
municipalities, governmental agencies and corporations and the private sector to supply, distribute and
market such water;cralaw
(p) Undertake studies on the improvement and maintenance of the desirable lake water quality of
Laguna de Bay, and in pursuance thereof, prepare a water quality management program on a continuing
basis, subject to the approval of the NEDA, which the Authority shall carry out with the assistance and
support of all national and local government units involved in water quality management.
Sec. 4-A. Compensation for damages to the water and aquatic resources of Laguna de Bay and its
tributaries resulting from failure to meet established water and effluent quality standards or from such
other wrongful act or omission of a person, private or public, juridical or otherwise, punishable under
the law shall be awarded to the Authority to be earmarked for water quality control and management.
Sec. 4-B. The Authority is hereby empowered to collect annual fees as provided for in Sec. 4-J herein,
for the use of the lake waters and its tributaries for all beneficial purposes including recreation,
municipal, industrial, agricultural, fisheries, navigation and waste disposal purposes. All the fees so
collected shall be used for the management and development of the lake and its watershed
areas: Provided, That the rates of the fees to be collected shall be subject to the approval of the
President of the Philippines.
CHAPTER III
CORPORATE POWERS
Sec. 5. The powers of the Authority. The Authority shall have the following powers and functions:
a) To succeed on its corporate name;cralaw
b) To sue and be sued in such corporate name;cralaw
c) To adopt, alter and use a corporate seal;cralaw
d) To adopt, amend, and repeals its by-laws;cralaw
e) To enter into contracts of any kind and description, to enable it to carry out its purposes and
functions under this Act;cralaw
f) To acquire, buy, purchase, hold or lease, such personal and real property as it deems necessary or
convenient in the transaction of its business and/or in relation with carrying out its purposes under this
Act; and to lease, mortgage, sell, alienate, or otherwise encumber, utilize, exploit or dispose any such
personal and real property held by it, subject to prior or existing individual or communal right of private
parties or of the government or any agency or enterprise thereof.
g) To exercise the right of eminent domain whenever the Authority deems it necessary for the
attainment of the objectives of the Authority under this Act;cralaw
h) To borrow funds from any local or foreign financial institutions independent of the bonds it may issue
or may continue to issue, to carry out the purposes of this Authority under this Act;cralaw
i) To purchase, hold, alienate, mortgage, pledge or otherwise dispose of the shares of the capital stock
of, or any bond, securities, or other evidence of indebtedness created by any other corporation, co-
partnership, or government agencies or instrumentalities; and while the owner of said stock to exercise
all the rights or ownership, including the right to vote thereon; Provided, That the Authority shall not
invest its funds in any highly risky debt instruments issued without recourse to commercial banks or
investment houses as well as in any highly speculative stocks.
j) For carrying on its business, or for the purpose of attaining or furthering any of its objectives, to
perform any and all acts which a corporation, co-partnership, or natural person is authorized to perform
under the laws now existing or which may be enacted hereafter.
k) To issue such rules and regulations as may be necessary to effectively carry out the powers and
purposes herein provided including the plans, programs and projects of the Authority, subject to the
approval of the NEDA, the same to take effect thirty (30) days after publication thereof, in a newspaper of
general circulation.
Sec. 6. Capitalization and Financing. The Authority shall have an authorized capital of One Hundred
Million Pesos (P100,000,000) of which the amount of Fifty-One Million Pesos (P51,000,000) shall be
subscribed by the national government and Forty-Nine Million Pesos (P49,000,000) shall be subscribed
by cities, provinces, municipalities, government corporations and private investors; Provided, That at
least twenty-five percent of the national government's subscription shall be fully paid: Provided,
further, That the authorized capital stock may be increased upon the recommendation of NEDA.
The authorized capital stock of One Hundred Million pesos (P100M) shall be divided into One Million
(1,000,000) Shares of stock with a par value of One hundred Pesos (P100) per share.
The shares of stock of the Authority shall be divided into (1) 700,000 common shares (voting) and (2)
300,000 preferred shares (non-voting) with such fixed rates of return as shall be determined by the
Board. Of the common shares of 700,000 a minimum of 400,000 shares shall be subscribed by the
national government and at least sixty per cent of the balance shall be subscribed by the Provinces of
Laguna and Rizal in such proportion as may be agreed upon by both provincial governments in
accordance with their respective capacities. The remaining balance of the common shares shall be open
for subscription to cities, provinces, municipalities and private investors.
Of the preferred shares of stock of 300,000 a minimum of 110,000 shares shall be subscribed by the
national government. The balance of the preferred shares shall be available for subscription to cities,
provinces, municipalities, government corporations, and private investors; Provided, however, That
preferred shares shall enjoy preference with respect to distribution of dividends and assets in case of
dissolution.
Sec. 7. Powers of Municipal Corporations to Subscribe. For purposes of attaining the purposes of this
Authority, municipalities, cities and provinces are hereby authorized to subscribe, own, buy and hold
shares of stock of this Authority.
Sec. 8. Operating Expenses. For the operating expenses of the Authority, the sum of One Million Pesos
(P1,000,000) is hereby appropriated annually for five (5) years from the general fund of the National
Government not otherwise appropriated from the date of approval of this Decree.
The Board of Directors may appropriate out of the funds of the Authority such as may be needed or
necessary for its operating expenses.
Sec. 9. Power to Incur Debts and to Issue Bonds. Whenever the Board of Directors may deem it
necessary for the Authority to incur an indebtedness or to issue bonds to carry out the provisions of
this Act, it shall by resolution so declare and state the purpose for which the proposed debt is to be
incurred. The resolution shall be confirmed by the affirmative vote of the stockholders representing a
majority of the subscribed capital stock outstanding and entitled to vote.
The Authority shall submit to the NEDA Board and the Monetary Board of the Central Bank for approval
its proposal to incur indebtedness or to issue bonds, This shall be considered authorized upon approval
of the President of the Philippines.
Sec. 10. Bond Limit. The bonds shall be issued in such amounts as will be needed at any one time,
taking into account the rate at which said bonds may be absorbed by the buying public and the fund
requirements of projects ready for execution, and considering further a proper balanced productive and
non-productive projects so that inflation shall be held to the minimum.
Sec. 11. Form, rates of interest, etc. of bonds. The Board of Directors, shall prescribe the form, the rates
of interest, the denominations, maturities, negotiability, convertibility, call and redemption features, and
all other terms and conditions of issuance, placement, sale, servicing, redemption, and payment of all
bonds issued by the Authority under this Act.
The bonds issued by virtue of this Act may be made payable both as to principal and interest in
Philippine currency or any readily convertible foreign currency; Said bonds shall be receivable as
security in any transaction with the government in which such security is required.
Sec. 12. Exemption from tax. The Authority shall be exempt from all taxes, licenses, fees, and duties,
incidental to its operations. This exemption shall extend to its subsidiary corporation: Provided, That its
subsidiary corporations shall be subject to all said taxes, licenses, fees, and duties five (5) years after
their establishment under a graduated scale as follows: twenty (20) per centum of all said taxes during
the sixth year, forty (40) per centum of all said taxes during the seventh year, sixty (60) per centum of all
said taxes during the eighth year, eighty (80) per centum of all said taxes during the ninth year, and one
hundred (100) per centum of all taxes during the tenth year, after said establishment. Such examination
shall include any tax or fee imposed by the government on the sale, purchase or transfer of foreign
exchange. All notes, bonds, debentures and other obligations issued by the Authority shall be exempt
from all taxes both as to principal and interest, except inheritance and gift taxes.
Sec. 13. Sinking Fund. A sinking fund shall be established in such manner that the total annual
contribution thereto accrued at such rate of interest as may be determined by the Board of Directors as
confirmed by the stockholders representing a majority of the subscribed capital stock outstanding and
entitled to vote, shall be sufficient to redeem at maturity the bonds issued under this Act.
Such funds shall be under the custody of the treasurer of the Authority who shall invest the same in
such manner as the Board of Directors may direct; charge all expenses of investment to said sinking
fund, and credit the same with the interest on investment and other income belonging to it.
Sec. 14. Guarantee by the government. The Republic of the Philippines hereby guarantees the payment
by the Authority of both the principal and the interest of the bonds, debentures, collaterals, notes or
such other obligations issued by the Authority by virtue of this Act, and shall pay such principal and
interest in the event that the Authority fails to do so. In case the Authority shall be unable to pay the said
principal and interest, the Secretary of Finance shall pay the amount thereof which is hereby
appropriated out of any funds in the National Treasury not otherwise appropriated, and thereupon, to
the extent of the amounts so paid, the Government of the Republic of the Philippine shall succeed to all
rights of the holders of such bonds, debentures, collaterals, notes or other obligations, unless the sum
so paid by the Republic of the Philippines shall be refunded by the Authority within a reasonable time.
CHAPTER V
MANAGEMENT AND PERSONNEL
Sec. 15. Incorporation. The members of the first Board of Directors shall be elected by the stockholders
and the incorporation shall be held to have been effected from the date of the first meeting of such
Board.
Sec. 16. Board of Directors: Composition. The corporate powers shall be vested in and exercised by a
Board of Directors, hereinafter referred to as the Board, which shall be composed of eight (8) members,
to wit: the Executive Secretary, the Secretary of Economic Planning, the Secretary of Natural Resources,
the Secretary of Industry, a representative of Laguna Province, who shall be designated by the
Provincial Board of Laguna; a representative of Rizal Province to be designated by its Provincial Board;
the General Manager of the Authority to be appointed by the President of the Philippines, and a
representative of the private investors, likewise to be appointed by the President of the Philippines from
among a list of recommendees to be submitted by the private investors: Provided, That the incumbent
representative of the private investors: shall continue as member until the President appoints his
successor. The Board of Directors shall elect annually from among their members a Chairman and a
Vice Chairman. There shall be a Corporate Secretary who shall be appointed the Board.
The officials next in rank to the above-mentioned member shall serve as permanent alternate members
and shall attend meetings of the Board in the absence of their principals and receive the corresponding
per diems.
Sec. 17. Acting Chairman. In case of vacancy in the position of Chairman, or in the absence of or
temporary incapacity of the Chairman, the Vice-Chairman shall act as such until a new Chairman is duly
elected by the Board.
Sec. 18. (This provision were repealed by PD 813, Sec. 19, promulgated on October 17, 1975.)
Sec. 20. Effect of vacancies; quorum. Vacancies in the Board as long as there shall be four members in
office, shall not impair the powers of the Board to execute the functions of the Authority. The affirmative
vote of four (4) members of the Board shall be necessary at all times to pass or approve any act or
resolution.
Sec. 21. Qualifications of Directors. All members of the Board shall be citizens and residents of the
Philippines. They shall have demonstrated executive competence and experience in the field of public
administration, economic planning, resource management, or in the establishment and management of
large agricultural, industrial or commercial enterprises. No person shall be nominated as member of the
Board unless he be of unquestioned integrity and competence.
Sec. 22. Prohibition against "Conflict of Interest." No person member of the Board shall be financially
interested, directly or indirectly, in any contract entered into by the Authority or in any special privileges
granted by the Authority during his term of office. All contracts entered into in violation of this provision
shall automatically be null and void. Any member of the Board found violating the provisions of this
section by two-thirds (2/3) vote of the Board shall automatically be disqualified from serving his
unexpired term, and he shall furthermore be perpetually disqualified for membership in the said Board.
Sec. 23. Removal, courtesy resignation. A member of the Board may be removed from office by a vote of
the stockholders holding or representing three-fourths (3/4) of the subscribed capital stock outstanding
and entitled to vote. No member of the Board shall be required to submit a courtesy resignation at any
time during his term of office.
Sec. 24. Board Meetings. The Board shall meet at least once a month. The Board shall be convoked by
the Chairman or upon written request signed by a majority of the members.
Sec. 25. Per Diems and Allowances. The members of the Board shall receive for every meeting attended
a per diem to be determined by the Board: Provided, That in no case will the total amount received by
each exceed the sum of One Thousand Pesos (P1,000.00) for any one month. Members of the Board
shall be entitled to commutable transportation and representation allowances in the performance of
official functions for the Authority as authorized by the Board the aggregate amount of which shall not
exceed One Thousand Pesos (P1,000.00) for any one month.
Sec. 25-A. Powers and Functions of the Board of Directors.
a. To formulate, prescribe, amend and repeal rules and regulations to govern the conduct of business of
the Authority;cralaw
b. To appoint and fix the compensation of all officials from division heads and above, and others of
comparable rank including the Assistant General Manager upon the recommendation of the General
Manager;cralaw
c. By a majority vote of all members of the Board, to suspend, remove or otherwise discipline for just
cause all officials appointed by the Board;cralaw
d. To approve the annual and/or supplemental budgets of the Authority; and
e. To do such other acts and perform such other functions as may be necessary to carry out the
provisions of this Charter.
Sec. 26. Powers and Functions of the General Manager. The General Manager shall be the chief
executive of the Authority. As such, he shall have the following powers and duties:
a. Submit for consideration of the Board the policies and measures which he believes to be necessary to
carry out the purposes and provisions of this Act;cralaw
b. Execute and administer the policies, plans, programs and projects approved by the Board;cralaw
c. Direct and supervise the operation and internal administration of the Authority. The General Manager
may delegate certain of his administrative responsibilities to other officers of the Authority subject to
the rules and regulations of the Board.
d. Appoint officials and employees below the rank of division heads to positions in the approved budget
upon written recommendation of the division head concerned using as guide the standard set forth in
the Authority's merit system;cralaw
e. Submit quarterly reports to the Board on personnel selection, placement and training;cralaw
f. Submit to the NEDA an annual report and such other reports as may be required, including the details
of the annual and supplemental budgets of the Authority, and
g. Perform such other functions as may be provided by law.
Sec. 29. Compensation. The General Manager shall receive a compensation of at least Thirty-Six
Thousand Pesos (P36,000.00) per annum which shall be charged against the annual appropriation of the
Authority for operating expenses. The Board of Directors may provide per diems and allowances for the
General Manager.
Sec. 30. Residence. The General Manager shall establish his residence within the region. The General
Manager shall not, during his term of office, engage in any business or profession or calling other than
those connected in the performance of his official duties as General Manager of the Authority.
Sec. 31. Activities of the Authority: Key Officials. In carrying out the activities of the Authority, the
General Manager shall be assisted by an Assistant General Manager who shall have such powers, duties,
and functions that may be delegated to him by the General Manager, and shall act as General Manager
in the absence of or during the temporary incapacity of and/or until such time as a new General Manager
is duly appointed.
The Authority shall have the following divisions under the direct supervision and control of the General
Manager;cralaw
a. An Administrative Division which shall be responsible for providing services relating to personnel,
training, information, records, supplies general services, equipment and security;cralaw
b. A legal Division, to be headed by a Legal Counsel who shall represent the Authority in legal actions
and proceedings. This division shall be responsible for providing staff advice and assistance on legal
matters;cralaw
c. A Finance Division which shall be responsible for providing staff advice and assistance on budgetary
and financial matters, and safekeeping of corporate assets;cralaw
d. A Project Management Division which shall be responsible for the operation of approved projects,
project evaluation and management improvement matters;cralaw
e. A Planning and Project development Division which shall be responsible for providing services
relating to planning, programming, statistics and project development; and
f. An Engineering and Construction Division which shall be responsible for providing services relating
to detailed engineering plans and the construction and maintenance of project facilities.
The business and activities of each of these divisions shall be directed by an officer to be known as its
division head.
The Board may create such other divisions and positions as may be deemed necessary for the efficient,
economical and effective conduct of the activities of the Authority.
Sec. 32. Merit and Compensation System. All officials, agents and employees of the Authority shall be
selected and appointed on the basis of merit and fitness in accordance with a comprehensive and
progressive merit system to be established by the Authority. The recruitment, transfer, promotion and
dismissal of all personnel of the authority, including temporary workers, shall be governed by such
merit system: Provided, That the regular professional and technical personnel of the Authority shall be
exempt from the coverage of the classification and compensation plans of the WAPCO and Civil Service
rules and regulations: Provided, however, That such personnel shall be permanent instates and shall be
entitled to the benefits and privileges normally accorded to government employees, such as retirement,
GSIS insurance, leave and similar matters: Provided, further, That the Director General of the NEDA
shall review and recommend the approval of the staffing pattern for professional and technical
personnel of the Authority including modifications thereof as may be necessary for five years from the
date of approval of this Decree.
Sec. 34-A. Supervision by the NEDA. The Authority shall be directly under the NEDA for policy and
program integration.
Sec. 34-B. Submission of Financial Statement to NEDA. The Authority shall submit audited financial
statements to NEDA within 60 days after the close of the fiscal year, and it shall continue to operate on
the basis of not more than the preceding year's budget until the said financial statements shall have
been submitted.
Sec. 34-C. Management Audit by the NEDA. The NEDA, may, at its own instance, initiate a management
audit of the Authority when there is a reasonable ground to believe that the affairs of the Authority have
been mismanaged. Should such audit indicate mismanagement, the NEDA shall take such appropriate
measures as may be required by circumstances.
Sec. 35. Minimum Wage. All contracts entered into by the Authority which require the employment of
persons shall contain provision that not less than the minimum wage fixed by law shall be paid to such
persons so employed.
Sec. 36. Plans to be formulated within one year. Upon its organization, the Board of Directors shall
formulate and report to the stockholders with the utmost expeditious manner, but in no case longer than
one year, its plans and recommendations for the accelerated and balanced development of the region in
accordance with the aims and purposes of this Act.
Sec. 37. Supplies and services other than personnel. All purchases of supplies or contracts for services,
except for personnel services, entered into by the Authority shall be done only after the proper bidding
is held. Bidding shall not be required when: (1) the amount involved is five thousand pesos (P5,000.00)
or less; (2) an emergency, as certified to by the General Manager, requires immediate delivery of the
supplies or performance of the services: Provided, That in comparing bids and making awards, the
Authority shall consider such factors as the cost and relative quality and adaptability of supplies or
services; the bidders' financial responsibility, skill, experience, integrity, and ability to furnish repairs
and maintenance services; the time of delivery or performance offered; and the compliance with the
specifications desired.
Sec. 38. Auditing. The Board of Directors shall provide and appoint an auditor who shall formulate an
auditing system for the Authority. The auditor shall make a semestral and/or annual report covering the
financial conditions and operation of the Authority to the Board. These auditing reports shall contain a
statement of the resources and liabilities, including earnings and expenses, the amount of paid-up
capital stock, surplus, reserves, and profits, as well as losses, bad debts and such other facts which,
under auditing rules and regulations, are considered necessary to accurately described the financial
conditions and operation of the Authority. The auditor shall report and directly responsible to the Board.
Sec. 39.
Sec. 39-A. Penal and Civil Liability Clause. Any person, natural or juridical, who shall violate any of the
provisions of this Act or any rules or regulation promulgated by the Authority pursuant thereto shall be
liable to imprisonment of not exceeding three years or to a fine not exceeding Five Thousand Pesos or
both at the discretion of the Court.
If the violator be a corporation, partnership or association, the officer or officers of the organization
concerned shall be liable therefor.
The authority is hereby authorized to pursue separate civil actions for damages resulting from
infractions of the provisions of this Act, rules or regulations issued pursuant thereto and/or conditions
embodied in the clearances or permits issued by the Authority.
Sec. 40. Separability Clause. The provisions of this Act are hereby declared to be separable, and in the
event any one or more such provisions are held unconstitutional, they shall not affect the validity of
other provisions.
Sec. 40-A. Transitory Provision. When the Regional Development Council for the region becomes
operational, the socio-economic planning functions as envisioned under this Charter shall be assumed
by the aforementioned Regional Development Council in accordance with the provisions of the
Integrated Reorganization Plan, as amended. All incumbent officials and employees shall continue in
office and those qualified shall have preference in filling up new positions that may be created as
consequence of this Decree.
Sec. 41. Definition of Terms.
1) Act Whenever used in this Act, shall refer to the enabling Act creating the Laguna Lake Development
Authority;cralaw
2) Authority Whenever cited in this Act shall mean the Laguna Lake Development Authority;cralaw
3) Board The word Board shall always refer to the Board of Directors of the Laguna Lake Development
Authority;cralaw
4) Region The word Region in this connection mean the Laguna Lake area proper comprising the
provinces of Rizal and Laguna and the cities of San Pablo, Manila, Pasay, Quezon and Caloocan;cralaw
5) Government instrumentalities or agencies or entities. Whenever used in this Act shall means
instruments of the national or local governments vested with powers to accomplish a definite
government aim or purpose;cralaw
6) Municipal Corporation. Whenever used in this Act shall mean one that is organized for political
purposes with political powers exercised for the good of the public, subject to legislative control and
with officers of the government as its members to administer or discharge public duties;cralaw
7) Government Corporation. Whenever used shall refer to corporations engaged in performing functions
impressed with public interest;cralaw
8) Investor With regards to this Act, investors shall include public and private investors whether foreign
or local;cralaw
9) External Auditor. Shall mean a firm or a person hired outside the Authority or agency to audit the
books of accounts of another corporation or agency; examine financial records, prepare audit reports
on findings in the operation of the agency; review the statement on the performance report of the
Authority.
10) Subsidiary Corporation. A corporation that is organized or a corporation already in existence

wherein at least fifty-one per cent of its shares of stock are owned or controlled by the organizing or
subscribing Authority, in this case, the Laguna Lake Development Authority, to carry out or accomplish
its purposes.
11) Laguna Lake or Lake. Whenever Laguna Lake or lake is used in this Act, the same shall refer to
Laguna de Bay which is that area covered by the lake water when it is at the average annual maximum
lake level of elevation 12.50 meters, as referred to a datum 10.00 meters below mean lower low water
(M.L.L.W.). Lands located at and below such elevation are public lands which form part of the bed of
said lake.
Sec. 42. Laws repealed. All Acts, charters, executive orders, administrative orders, proclamations, rules
and regulations, or parts thereof in conflict with this Act are hereby repealed or modified accordingly.
Sec. 43. Effectivity. This Act shall take effect upon its approval.
Approved: July 18, 1966.
PRESIDENTIAL DECREE NO. 813
AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NUMBERED FORTY EIGHT

HUNDRED FIFTY, (R.A. 4850), OTHERWISE KNOWN AS THE "LAGUNA LAKE
DEVELOPMENT AUTHORITY ACT OF 1966."
WHEREAS, rapid expansion of Metropolitan Manila, the suburbs and the

lakeshore towns of Laguna de Bay, combined with current and
prospective uses of the lake for municipal-industrial water supply,
irrigation, fisheries, and the like, have created deep concern on the part
of the Government and the general public over the environment impact of
such development on the water quality and ecology of the lake and its
related river systems; ch anroblesvirtual awlibrar y
WHEREAS, inflow of polluted water from the Pasig River, industrial,

domestic and agricultural wastes from developed areas around the lake
and the increasing urbanization have induced the deterioration of the
lake and water quality studies have shown that the lake will deteriorate
further if steps are not taken to check the same; chanroblesvirtu alawlibrar y
WHEREAS, floods in Metropolitan Manila area and the lakeshore towns

are also influenced by the hydraulic system of the Laguna de Bay, and
any scheme of controlling the floods will necessarily involve the lake and
its river systems.
WHEREAS, the Laguna Lake Development Authority is empowered under

Republic Act No. 1850 to conserve and develop the resources of the
Laguna de Bay region to promote socio-economic well-being of the
people but in the exercise of these functions, deficiencies and
ambiguities in the present provisions of the law were found which
impede the accomplishment of the Authority's goal; chanroblesvirtual awlibrar y
WHEREAS, under existing laws, other government agencies have varying

degrees of jurisdiction and control of the lake resulting in problems of
coordination, planning and management thereby hampering the efforts of
the Authority to plan and implement its overall development plans for
conservation and utilization of the lake resources in accordance with the
provisions of its character; chanroblesvirtualawlibrar y
WHEREAS, in view of the foregoing consideration, the passage into law of

the amendments embodied in this Decree is necessary; chanroblesvirtual awlibrar y
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do
hereby decree, order and make as part of the law of the land the
following amendments to Republic Act No. 4850; chanroblesvirtu alawlibrar y
Section 1. Sec. one of Republic Act Numbered Forty-Eight Hundred and

Fifty is hereby amended to read as follows:
"Sec. 1. Declaration of Policy. It is hereby declared to be the national
policy to promote, and accelerate the development and balanced growth
of the Laguna Lake area and the surrounding provinces, cities and towns
hereinafter referred to as the region, within the context of the national
and regional plans and policies for social and economic development and
to carry out the development of the Laguna Lake region with due regard
and adequate provisions for environmental management and control,
preservation of the quality of human life and ecological systems, and the
prevention of undue ecological disturbances, deterioration and
pollution."
Sec. 2. The title and paragraphs (a), (d), (f), and (i) of Sec. 4 of the same
Act is hereby amended to read as follows:
"Sec. 4. Special Powers and Functions. The Authority shall exercise and
perform the following powers and functions:
"(a) To make a comprehensive survey of the physical and natural

resources and potentialities of the Laguna Lake region particularly its
social and economic conditions, hydrologic characteristics, power
potentials, scenic and tourist spots, regional problems, and on the basis
thereof, to draft a comprehensive and detailed plan designed to conserve
and utilize optimally the resources within the region particularly Laguna
de Bay, to promote the region's rapid social and economic development
and upon approval by the National Economic and Development Authority
(NEDA) Board of such plan, to implement the same including projects in
line with said plan: Provided, That implementation of all fisheries plans
and programs of the authority shall require prior consensus of the
Bureau of Fisheries and Aquatic Resources to ensure that such plans and
programs are consistent with the national fisheries plans and program.
For the purpose of the said survey, public agencies shall submit and
private entities shall provide necessary data except such data which
under existing laws are deemed inviolable.
"(d) To pass upon and approve or disapprove all plans, programs, and
projects proposed by local government offices/agencies within the
region, public corporations, and private persons or enterprises where
such plans, programs and/or projects are related to those of the
Authority for the development of the region as envisioned in this Act. The
Authority shall issue the necessary clearance for approved proposed
plans, programs, and projects within thirty days from submission thereof
unless the proposals are not in consonance with those of the Authority or
that those will contribute to the unmanageable pollution of the Laguna
Lake waters or will bring about the ecological imbalance of the region:
Provided, further, That the Authority is hereby empowered to institute
necessary legal proceeding against any person who shall commence to
implement or continue implementation of any project, plan or program
within the Laguna de Bay region without previous clearance from the
Authority; Provided, furthermore, That any local government office,
agency, public corporation, private person, or enterprise whose plans,
programs and/or projects have been disapproved by the Authority may
appeal the decision of the Authority to the NEDA within fifteen (15) days
from receipt of such disapproval whose decision on the matter shall be
final. Reasonable processing fees as may be fixed by the Authority's
Board of Directors shall be collected by the Authority for the processing
of such plans, programs and/or projects: Provided, finally, That
expansion plans shall be considered as new plans subject to review of
the Authority and to payment of the processing fees.
"The Authority and national and local government offices, agencies and
public corporations shall coordinate their plans, programs, projects and
licensing procedures with respect to the Laguna Lake region for the
purpose of drawing up a Laguna Lake development plan which shall be
binding upon all parties concerned upon approval of the NEDA board.
"(f) To plan, program, finance and/or undertake infrastructure projects

such as river, flood and tidal control works, waste water and sewerage
works, water supply, roads, port-works, irrigation, housing and related
works, when so required within the context of its development plans and
programs including the readjustment, relocation, or resettlement of
population within the region as may be deemed necessary and beneficial
by the Authority: Provided, That should any project be financed wholly or
in part by the Authority, it is hereby authorized to collect reasonable fees
and tolls as may be fixed by its Board of Directors subject to the approval
of the NEDA Board from users and/or beneficiaries thereof to recover
costs of construction, operation and maintenance of the projects:
Provided, further, That if the Authority should find it necessary to
undertake such infrastructure projects which are classified, as social
overhead capital projects as determined by the NEDA, the Authority shall
be authorized to receive financial assistance from the government in
such amount as may be necessary to carry out the said projects subject
to such terms and conditions that may be imposed by the government,
upon recommendation of the NEDA Board: Provided, finally, That such
amount as may be necessary for the purpose is hereby authorized to be
appropriated out of the funds of the National Treasury that otherwise
appropriated."
"(i) To reclaim or cause to be reclaimed portions of the Lake or undertake

reclamation projects and/or acquire such bodies of land from the lake
which may be necessary to accomplish the aims and purposes of the
Authority subject to the approval of the NEDA Board: Provided, That the
land so reclaimed shall be the property of the Authority and title thereto
shall be vested in the Authority: Provided, further, That the resulting
lakeshore area shall continue to be owned by the national government."
Sec. 3. Sec. 4 of the same Act is hereby further amended by adding
thereto seven new paragraphs to be known as paragraphs (j), (k), (l),
(m), (n), (o), and (p) which shall read as follows:
"(j) The provisions of existing laws to the contrary notwithstanding, to
engage in fish production and other aqua-culture projects in Laguna de
Bay and other bodies of water within its jurisdiction and in pursuance
thereof to conduct studies and make experiments, whenever, necessary,
with the collaboration and assistance of the Bureau of Fisheries and
Aquatic Resources, with the end in view of improving present techniques
and practices. Provided, that until modified, altered or amended by the
procedure provided in the following subparagraph, the present laws,
rules and permits or authorizations remain in force;
"(k) For the purpose of effectively regulating and monitoring activities in

Laguna de Bay, the Authority shall have exclusive jurisdiction to issue
new permit for the use of the lake waters for any projects or activities in
or affecting the said lake including navigation, construction, and
operation of fishpens, fish enclosures, fish corals and the like, and to
impose necessary safeguards for lake quality control and management
and to collect necessary fees of said activities and projects: Provided,
That the fees collected for fisheries may be shared between the Authority
and other government agencies and political sub-divisions in such
proportion as may be determined by the President of the Philippines
upon recommendation of the Authority's Board: Provided, further, That
the Authority's Board may determine new areas of fishery development
or activities which it may place under the supervision of the Bureau of
Fisheries and Aquatic Resources taking into account the overall
development plans and programs for Laguna de Bay and related bodies of
water: Provided, finally, That the Authority shall subject to the approval
of the President of the Philippines promulgate such rules and regulations
which shall govern fisheries development activities in Laguna de Bay
which shall take into consideration among others the following socio-
economic amelioration of bonafide resident fishermen whether
individually or collectively in the form of cooperatives, lakeshore town
development, a master plan for fishpen construction and operation,
communal fishing ground for lake shore town residents, and preference
to lake shore town residents in hiring laborers for fishery projects."
"(l) To require the cities and municipalities embraced within the region
to pass appropriate zoning ordinances and other regulatory measures
necessary to carry out the objectives of the Authority and enforce the
same with the assistance of the Authority."
"(m) The provisions of existing laws to the contrary notwithstanding, to

exercise water rights over public waters within the Laguna de Bay region
whenever necessary to carry out the Authority's projects;"
"(n) To act in coordination with existing governmental agencies in

establishing water quality standards for industrial, agricultural and
municipal waste discharges into the lake and to cooperate with said
existing agencies of the government of the Philippines in enforcing such
standards, or to separately pursue enforcement and penalty actions as
provided for in Sec. 4 (d) and Sec. 39-A of this Act: Provided, That in case
of conflict on the appropriate water quality standard to be enforced such
conflict shall be resolved thru the NEDA Board;"
"(o) To develop water supply from ground and/or lake water resources
for municipal, agricultural and industrial usages, in coordination with the
National Water Resources Council created by Presidential Decree No. 424
dated March 28, 1974 or its successors in interests, and to enter into
agreements with municipalities, governmental agencies and corporations
and the private sector to supply, distribute and market such water;"
"(p) Undertake studies on the improvement and maintenance of the

desiable lake water quality of Laguna de Bay, and in pursuance thereof,
prepare a water quality management program on a continuing basis,
subject to the approval of the NEDA, which the Authority shall carry out
with the assistance and support of all national and local government
units involved in water quality management."
Sec. 4. Two new Sec.s to be known as Sec. 4-A and 4-B are hereby
inserted after Sec. 4 and before Sec. 5 of the same Act which shall read
as follows:
"Sec. 4-A. Compensation for damages to the water and aquatic resources
of Laguna de Bay and its tributaries resulting from failure to meet
established water and effluent quality standards or from such other
wrongful act or omission of a person, private or public, juridical or
otherwise, punishable under the laws shall be awarded to the Authority
to be earmarked for water quality control management."
"Sec. 4-B. The Authority is hereby empowered to collect annual fees as

provided for in Sec. 4-J herein, for the use of the lake waters and its
tributaries for all beneficial purposes including recreation, municipal,
industrial, agricultural, fisheries, navigation and waste disposal
purposes. All the fees so collected shall be used for the management and
development of the lake and its watershed areas: Provided, That the
rates of the fees to be collected shall be subject to the approval of the
Sec. 5. Sec. 5, Paragraph (f) and (i) of the same act is amended to read
as follows:
"(f) To acquire, buy, purchase, hold or lease, such personal and real
property as it deems necessary or convenient in the transaction of its
business and/or in relation with the carrying out of its purposes under
this Act; and to lease, mortgage, sell, alienate, or otherwise encumber,
utilize, exploit or dispose any such personal and real property held by it,
subject to prior or existing individual or communal right of private
parties or of the government or any agency or enterprise thereof."
"(i) To purchase, hold, alienate, mortgage, pledge or otherwise dispose

of the shares of the capital stock of, or any bond, securities, or to her
evidence of indebtedness created by any other corporation, co-
partnership, or government agencies or instrumentalities; and while the
owner of said stock of exercise all the rights of ownership, including the
right to vote thereon: Provided, That the Authority shall not invest its
funds in any highly risky debt instruments issued without recourse to
commercial banks or investment houses as well as in any highly
speculative stocks.
Sec. 6. Sec. 5 of the same Act is further amended by adding a new
paragraph thereto be known as paragraph (k) which shall read as
follows:
"(k) To issue such rules and regulations as may be necessary to
effectively carry out the powers and purposes herein provided including
the plans, program and projects of the Authority, subject to the approval
of the NEDA, the same to take effect thirty (30) days after publication
thereof, in a newspaper of general circulation."
Sec. 7. Sec. 6 of the same Act is amended to read as follows: cr alaw
"Sec. 6. Capitalization and Financing. The Authority shall have an

authorized capital of one Hundred Million Pesos (Pph100,000,000.00) of
which the amount of Fifty-One Million Pesos (Php51,000,000.00) shall be
subscribed by the national government and Forty-Nine Million Pesos
(Php49,000,000.00) shall be subscribed by cities, provinces,
municipalities, government corporations and private investors: Provided,
That at least twenty-five percent of the national government's
subscription shall be fully paid: Provided, further, That the authorized
capital stock may be increased upon the recommendation of NEDA.
"The authorized capital stock of one Hundred Million Pesos
(Php100,000,000.00) shall be divided into one Million (1,000,000) shares
of stock with a par value of one Hundred Pesos (Php100.00) per share.
"The shares of stock of the Authority shall be divided into (1) 700,000
common shares (voting) and (2) 300,000 preferred shares (non-voting)
with such fixed rates of return as shall be determined by the Board. Of
the common shares of 700,000 a minimum of 400,000 shares shall be
subscribed by the national government and at least sixty percent of the
balance shall be subscribed by the Province of Laguna and Rizal in such
proportion as may be agreed upon by both provincial governments in
accordance with their respective financial capacities. The remaining
balance of the common shares shall be open for subscription to cities,
provinces, municipalities and private investors.
"Of the preferred shares of stock of 300,000 a minimum of 110,000

shares shall be subscribed by the national government. The balance of
the preferred shares shall be available for subscription to cities,
provinces, municipalities, government corporations, and private
investors: Provided, however, That preferred shares shall enjoy
preference with respect to distribution of dividends and assets in case of
dissolution.
Sec. 8. Sec. 8 of the same Act is hereby amended to read as follows:
"Sec. 8. Operating Expenses. For the operating expenses of the Authority,
the sum of one Million Pesos (Php1,000,000.00) is hereby appropriated
annually for five (5) years from the general fund of the National
Government not otherwise appropriated from the date of approval of this
Decree.
"The Board of Directors may appropriate out of the funds of the Authority
such sums as may be needed or necessary for its operating expenses.
"Sec. 9. Proper to Incur Debts and to Issue Bonds. Whenever the Board
of Directors may deem it necessary for the Authority to incur an
indebtedness or to issue bonds to carry out the provisions of this Act, it
shall by resolution so declare and state the purpose for which to
proposed debt is to be incurred. The resolution shall be confirmed by the
affirmative vote of the stockholders representing a majority of the
subscribed capital stock outstanding and entitled to vote.
"The Authority shall submit to the NEDA Board and the Monetary Board of
the Central Bank for approval its proposal to incur indebtedness or to
issue bonds. This shall be considered authorized upon approval of the
"Sec. 15. Incorporation. The members of the first Board of Directors shall
be elected by the stockholders and the incorporation shall be held to
have been effected from the date of the first meeting of such Board."
"Sec. 16. Board of Directors: Composition. The corporate powers shall be
vested in and exercised by a Board of Directors, hereinafter referred to as
the Board, which shall be composed of eight (8) members, to wit: the
Executive Secretary; the Secretary of Economic Planning; the Secretary
of Natural resources; the Secretary of Industry; a representative of
Laguna Province, who shall be designated by the Provincial Board of
Laguna; a representative of Rizal Province to be designated by its
Provincial Board; the General Manager of the Authority to be appointed
by the President of the Philippines from among a list of recommendees to
be submitted by the private investors; Provided, That the incumbent
representative of the private investors shall continue as member until the
President appoints his successor. The Board of Directors shall elect
annually from among their members a Chairman and a Vice-Chairman.
There shall be a Corporate Secretary who shall appointed by the Board.
"The officials next in rank to the above-mentioned members shall serve

as permanent alternate members and shall attend meetings of the Board
in the absence of their principals and receive the corresponding per
diems."
Sec. 12. Sec. 18 and 19 of the same Act are hereby repealed.
"Sec. 21. Qualifications of Directors. All members of the Board shall be
citizens and residents of the Philippines. They shall have demonstrated
executive competence and experience in the field of public
administration, economic planning, resource management, or in the
establishment and management of large agricultural, industrial or
commercial enterprises. No person shall be nominated as member of the
Board unless he be of unquestioned integrity and competence."
"Sec. 24. Board Meetings. The Board shall meet at least once a month.
The Board shall be convoked by the Chairman or upon written request
signed by a majority of the members."
"Sec. 25. Per Diems and Allowances. The members of the Board shall
receive for every meeting attended a per diem to be determined by the
Board: Provided, That in no case will the total amount received by each
exceed the sum of one Thousand Pesos (Php1,000.00) for any one
month. Members of the Board shall be entitled to commutable
transportation and representation allowances in the performance of
official functions for the Authority as authorized by the Board the
aggregate amount of which shall not exceed one Thousand Pesos
(Php1,000.00) for any one month."
Sec. 16. A new Sec. to be known as Sec. 25-A is hereby inserted after
Sec. 25 to read as follows:"
"Sec. 25-A. Powers and Functions of the Board of Directors.
1. To formulate, prescribe, amend and repeal rules and regulations

to govern the conduct of business of the Authority;
2. To appoint and fix the compensation of all officials from division

heads and above, and others of comparable rank including the Assistant
General Manager upon recommendation of the General Manager;
3. By a majority vote of all members of the Board, to suspend,

remove or otherwise discipline for just cause all officials appointed by
the Board;
4. To approve the annual and/or supplemental budget to the

Authority; and
5. To do such other acts and perform such other functions as

maybe necessary to carry out the provisions of this Charter."
"Sec. 26. Powers and Functions of the General Manager.- The General
Manager shall be the chief executive of the Authority. As such, he shall
have the following powers and duties:
1. Submit for consideration of the Board the policies and

measures which he believes to be necessary to carry out the purposes
and provisions of this Act;
2. Execute and administer the policies, plans, programs and

projects approved by the Board;
3. Direct and supervise the operation and internal administration

of the Authority. The General Manager may delegate certain of his
administration of the Authority. The General Manager may delegate
certain of his administrative responsibilities to other officers of the
Authority subject to the rules and regulations of the Board; chanroblesvirtual awlibrar y
4. Appoint officials and employees below the rank of division

heads to positions in the approved budget upon written recommendation
of the division head concerned using as guide the standard set forth in
the Authority's merit system;
5. Submit quarterly reports to the Board on personnel selection,
placement and training;
6. Submit to the NEDA an annual report and such other reports as

may be required, including the details of the annual and supplemental
budgets of the Authority; and
7. Perform such other functions as may be provided by law."

Sec. 18. Sec. 27 of the same Act is hereby repealed.
"Sec. 29. Compensation. The General Manager shall receive a
compensation of at least Thirty-Six Thousand Pesos (Php36,000.00) per
annum which shall be charged against the annual appropriation of the
Authority for operating expenses. The Board of Directors may provide per
diems and allowances for the General Manager."
Sec. 21. Sec. 31 of the same Act is amended to read as follows:
"Sec. 31. Activities of the Authority: Key Officials. In carrying out the
activities of the Authority, the General Manager shall be assisted by an
Assistant General Manager who shall have such powers, duties, and
functions that may be delegated to him by the General Manager, and
shall act as General Manager in the absence of or during the temporary
incapacity of and/or until such time as a new General Manager is duly
appointed.
"The Authority shall have the following divisions under the direct
supervision and control of the General Manager:
1. An Administrative Division which shall be responsible for providing

services relating to personnel, training, information, records, supplies,
general services, equipment and security;
2. A Legal Division, to be headed by a Legal Counsel who shall

represent the Authority in legal actions and proceedings. This division
shall be responsible for providing staff advice and assistance on legal
matters;
3. A Finance Division which shall be responsible for providing staff

advice and assistance on budgetary and financial matters, and
safekeeping of corporate assets;
4. A Project Management Division which shall be responsible for

the operation of approved projects, project evaluation and management
improvement matters;
5. A Planning and Project Development Division which shall be

responsible for providing services relating to planning, programming,
statistic and project development; and
6. An Engineering and Construction Division which shall be

responsible for providing services relating to detailed engineering plans
and the construction and maintenance of project facilities.
"The business and activities of each of these divisions shall be directed

by an officer to be known as its division head."
"The Board may create such other divisions and positions as maybe
deemed necessary for the efficient, economical and effective conduct of
the activities of the Authority."
"Sec. 32. Merit and Compensation System. All officials, agents and
employees of the Authority shall be selected and appointed on the basis
of merit and fitness in accordance with a comprehensive and progressive
merit system to be established by the Authority. The recruitment,
transfer, promotion and dismissal of all personnel of the Authority,
including temporary workers, shall be governed by such merit system:
Provided, That the regular professional and technical personnel of the
Authority shall be exempt from the coverage of the classification and
compensation plans of the WAPCO and Civil Service rules and
regulations: Provided, however, That such personnel shall be permanent
in status and shall be entitled to the benefits and privileges normally
accorded to government employees, such as retirement, GSIS insurance,
leave and similar matters: Provided, further, That the Director General of
the NEDA shall review and recommend the approval of the staffing
pattern for professional and technical personnel of the Authority
including modifications thereof as may be necessary for five years from
the date of approval of this Decree."
Sec.25. Three new Sec.s to be known as Sec. 34-A, Sec. 34-B and Sec.
34-C are hereby inserted after Sec. 34 and before Sec. 35 which shall
read as follows: cralaw
"Sec. 34-A. Supervision by the NEDA. The Authority shall be directly

under the NEDA for polley and program integration.
"Sec. 34-B. Submission of Financial Statement to NEDA. The Authority
shall submit audited financial statements to NEDA within 60 days after
the close of the fiscal year, and it shall continue to operate on the basis
of not more than the preceding year's budget until the said financial
statements shall have been submitted.
"Sec. 34-C. Management Audit by the NEDA. The NEDA may, at its own
instance, initiate a management audit of the Authority when there is a
reasonable ground to believe that the affairs of the Authority have been
mismanaged. Should such audit indicate mismanagement, the NEDA shall
take such appropriate measures as may be required by circumstances."
Sec. 27. After Sec. 39, a new Sec. shall be added to be known as Sec. 39-
A which shall read as follows:
"Sec. 39-A. Penal and Civil Liability Clause. Any person, natural or
juridical, who shall violate any of the provisions of this Act or any rule or
regulation promulgated by the Authority pursuant thereto shall be liable
to imprisonment of not exceeding three years or to a fine not exceeding
Five Thousand Pesos or both at the discretion of the court.
"If the violator be a corporation, partnership of association, the officer or

officers of the organization concerned shall be liable therefor.
"The Authority is hereby authorized to pursue separate civil actions for

damages resulting from infractions of the provisions of this Act, rules or
regulations issued pursuant thereto and/or conditions embodied in the
clearances or permits issued by the Authority."
Sec. 28. After Sec. 40 of the same Act a new Sec. shall be added to be
known as Sec. 4-A which shall read as follows:
"Sec. 40-A. Transitory Provision. When the Regional Development Council
for the region becomes operational, the socio-economic planning
functions as envisioned under this Chapter shall be assumed by the
aforementioned Regional Development Council in accordance with the
provisions of the Integrated Reorganization Plan, as amended. All
incumbent officials and employees shall continue in office and those
qualified shall have preference in filling up new positions that may be
created as a consequence of this Decree."
Sec. 29. Sec. 41 of the same Act is hereby amended by adding thereto a
new paragraph, to be known as paragraph (11) which shall read as
follows:
"Sec. 41. Definition of Terms. "(11) Laguna Lake or Lake. Whenever
Laguna Lake or lake is used in this Act, the same shall refer to Laguna de
Bay which is that area covered by the lake waters when it is at the
average annual maximum lake level of elevation 12.50 meters, as
referred to a datum 10.00 meters below mean lower low water
(M.L.L.W.). Lands located at and below such elevation are public lands
form part of the bed of said lake."
Sec. 30. Repealing Clause. All laws, decrees, orders and rules which are
contrary to or inconsistent with this Decree are hereby repealed or
modified accordingly.
This Decree shall take effect upon its approval.
Done in the City of Manila, this 17th day of October in the year of Our
Lord, nineteen hundred and seventy-five.
EXECUTIVE ORDER NO. 927
FURTHER DEFINING CERTAIN FUNCTIONS AND POWERS OF THE LAGUNA

LAKE DEVELOPMENT AUTHORITY
WHEREAS, the land and the waters of the Laguna Lake Region are limited natural
resources requiring judicious management for their optimal utilization to insure
renewability and to preserve the ecological balance;
WHEREAS, the increasing pressure of urban growth and development dictate the
need for a more rational allocation of the limited land and lake resources of the
region responsive to the demands of the various beneficial users thereof;
WHEREAS, the competing options for the use of such resources and conflicting
jurisdictions over such users are creating undue constraints on the institutional
capabilities of LLDA in the light of the limited powers vested in it by its charter;
WHEREAS, for LLDA to effectively perform its role, a thorough corporate
reorganization aimed at: regrouping its various units for better administrative
control and direction; expansion of its field offices ; strengthening of its linkages
with other government and private institutions; broadening of its financial base
and revenue generations ; and, enlarging its prerogatives of monitoring, licensing
and enforcement, would be necessary. c ralaw
NOW, THERFORE, I, FERDINAND E. MARCOS, President of the Philippines, by

virtue of the powers vested in me by Constitution and the authority vested in me
by the Presidential Decree No. 1416, do hereby order and ordain:
Section 1. Reclassification The Authority is hereby classified among the
industrial/area development group (Class A) of corporations under Letter of
Implementation No. 97 and for this purpose the Authority is hereby granted
authority to modify its organization, providing for the creation of the position of
deputy general manager, upgrading the existing divisions into departments to be
headed by directors and regrouping of these departments into offices coordinated
by assistant general managers, and creating other offices its Board may deem
necessary and appropriate to achieve its objectives and aims. c ralaw
Sec. 2. Water Rights Over Laguna de Bay and Other Bodies of Water
within the Lake Region . To effectively regulate and monitor activities in the
Laguna de Bay region, the Authority shall have exclusive jurisdiction to issue
permit for the use of all surface water for any projects or activities in or affecting
the said region including navigation, construction, and operation of fishpens, fish
enclosures, fish corrals and the like.c ralaw
For the purpose of this Executive Order, the term "Laguna de Bay Region" shall
refer to the Provinces of Rizal and Laguna; the Cities of San Pablo, Pasay,
Caloocan, Quezon, Manila and Tagaytay; the towns of Tanauan, Sto. Tomas and
Malvar in Batangas Province; the towns of Silang and Carmona in Cavite
Province; the town of Lucban in Quezon Province; and the towns of Marikina,
Pasig, Taguig, Muntinlupa, and Pateros in Metro Manila. cralaw
Sec. 3. Collection of Fees. The Authority is hereby empowered to collect fees

for the use of the lake waters and its tributaries for all beneficial purposes
including but not limited to fisheries, recreation, municipal, industrial, agricultural,
navigation, irrigation, and waste disposal purpose; Provided, that the rates of fees
to be collected, and the sharing with other government agencies and political
subdivisions, if necessary, shall be subject to the approval of the President of the
Philippines upon recommendation of the Authority's Board, except fishpen fee,
which will be shared in the following manner: 20 percent of the fee shall go to the
lakeshore local governments, 5 percent shall go to the Project Development Fund
which shall be administered by a Council and the remaining 75 percent shall
constitute the share of LLDA. However, after the implementation within the three-
years period of the Laguna Lake Fishery Zoning and Management Plan, the
sharing will be modified as follows: 35 percent of the fishpen fee goes to the
lakeshore local governments, 5 percent goes to the Project Development Fund
and the remaining 60 percent shall be retained by LLDA; Provided, however, that
the share of LLDA shall form part of its corporate funds and shall not be remitted
to the National Treasury as an exception to the provisions of Presidential Decree
No. 1234. cralaw
Sec. 4. Additional Powers and Functions. The Authority shall have the
following powers and functions:
a) Issue standards, rules and regulation to govern the approval of
plans and specifications for sewage works and industrial waste
disposal systems and the issuance of permits in accordance with the
provisions of this Executive Order; inspect the construction and
maintenance of sewage works and industrial waste disposal systems
for compliance to plans.
b) Adopt, prescribe, and promulgate rules and regulations governing
the Procedures of the Authority with respect to hearings, plans,
specifications, designs, and other data for sewage works and
industrial waste disposal system, the filing of reports, the issuance of
permits, and other rules and regulations for the proper
implementation and enforcement of this Executive Order.
c) Issue orders or decisions to compel compliance with the provisions
of this Executive Order and its implementing rules and regulations o-
nly after proper notice and hearing.
d) Make, alter or modify orders requiring the discontinuance of
pollution specifying the conditions and the time within which such
discontinuance must be accomplished.
e) Issue, renew, or deny permits, under such conditions as it may
determine to be reasonable , for the prevention and abatement of
pollution, for the discharge of sewage, industrial waste, or for the
installation or operation of sewage works and industrial disposal
system or parts thereof: Provided, however, that the Authority, by
rules and regulations, may require subdivisions, condominiums,
hospitals, public buildings and other similar human settlements to put
up appropriate central sewerage system and sewage treatment works
or changes to or extensions of existing works that discharge only
domestic or sanitary wastes from a single residential building provided
with septic tanks or their equivalent. The Authority may impose
reasonable fees and charges for the issuance or renewal of all permits
herein required.
f) After due notice and hearing, the Authority may also revoke,
suspend or modify any permit issued under this Order whenever the
same is necessary to prevent or abate pollution.
g) Deputize in writing or request assistance of appropriate
government agencies or instrumentalities for the purpose of enforcing
this Executive Order and its implementing rules and regulations and
the orders and decisions of the Authority.
h) Authorize its representative to enter at all reasonable times any
property of the public dominion and private property devoted to
industrial, manufacturing , processing or commercial use without
doing damage, for the purpose of inspecting and investigating
conditions relating to pollution or possible or imminent pollution.
i) Exercise such powers and perform such other functions as may be
necessary to carry out its duties and responsibilities under this
Executive Order.
Sec. 5. Board of Directors Composition. The corporate powers shall be vested
in and exercised by the Board of Directors, hereinafter referred to as the Board
which shall be composed of ten (10) members, to wit: Representative of the
Office of the President; Minister of Economic Planning; Minister of Natural
Resources; Minister of Trade and Industry; Representative of Laguna Province
who shall be designated by the Provincial Board of Laguna; Representative of
Rizal Province who shall be designated by the Provincial Board of Rizal;
Representative of the Office of the Governor of the Metro Manila Commission;
President of the Laguna Lake Federation of Mayors, Inc. ; General Manager of the
Laguna Lake Development Authority to be appointed by the President of the
Philippines; Representative of Private Investors; Provided, that incumbent
representative of the private investors shall continue as members until the
President appoints his successor. The Board of Directors shall elect annually from
among their members, a Chairman and a Vice-Chairman. There shall be a
Corporate Secretary who shall be a Corporate Secretary who shall be appointed
by the Board with a rank equivalent to a Department Director. cralaw
The officials next-in-rank to the above-mentioned members shall serve as

permanent alternate members and shall attend meetings of the Board in the
absence of their principal and receive the corresponding per diems. cra law
Sec. 6. Capitalization and Financing. The Authority shall have an authorized

capital of Seven Hundred Million Pesos (PhP700,000,000) of which the amount of
THREE HUNDRED FIFTY onE MILLION PESOS (PhP351,000,000) shall be
subscribed by the national government and THREE HUNDRED FORTY NINE
MILLION PESOS (PhP349,000,000) shall be subscribed by the cities, provinces,
municipalities, government corporations and private investors; Provided, that at
least twenty-five percent (25%) of the national government's subscription shall
be fully paid; Provided, further, that the authorized capital stock may be
increased upon recommendation of the NEDA and shall come from the fishpen
fees.
cralaw
The authorized capital stock of Seven Hundred Million Pesos (PhP700,000,000)

shall be divided into Seven Million (PhP7,000,000) shares of stock with a par
value of one Hundred Pesos (PhP100) per share. cralaw
The shares of stock of the Authority shall be divided into: 1) 4,900,000 common
shares (voting) and 2) 2,100,000 preferred shares (non-voting) with such fixed
rates of return as shall be determined by the Board. Of the common shares of
4,900,000, a minimum of 2,800,000 shares shall be subscribed by the national
government and at least sixty percent (60%) of the balance shall be subscribed
by the Province of Laguna and Rizal in such proportion shall be agreed upon by
both provincials governments in accordance with their respective financial
capacities. The remaining balance of the common shares shall be open for
subscription to cities, provinces, municipalities and private investors. c ralaw
Of the preferred shares of stock of 2,100,000, a minimum of 770,000 shares shall

be subscribed by the national government. The balance of the preferred shares
shall be available for subscription to cities, provinces, municipalities, government
corporations and private investors. Provided, however, that preferred shares shall
enjoy preference with respect to distribution of dividends and assets in case of
dissolution. c ralaw
Sec. 7. Repealing Clause. All laws, decrees, orders, proclamations, rules,

regulations and issuances on parts, thereof, which are inconsistent with any of
the provisions of this Executive Order are hereby repealed or modified
accordingly. c ralaw
Sec. 8. Separability Clause. Any portion or provision of this Executive Order

that may be declared unconstitutional shall not have the effect of nullifying the
other provisions thereof ; Provided, that such remaining portions can still stand
and be given effect on their entirely to accomplish the objectives this Executive
Order. cralaw
Sec. 9. Effectivity Clause. This Executive Order shall take effect immediately. cra law
DONE in the City of Manila, this 16th day of December in the Year of Our Lord,
Nineteen Hundred and Eighty-Three. cralaw
LAGUNA LAKE DEVELOPMENT AUTHORITY
Board of Director's Meeting
Held on December 19, 1996
RESOLUTION NO. 33
Series of 1996
APPROVING THE RULES AND REGULATIONS IMPLEMENTING THE
ENVIRONMENTAL USER FEE SYSTEM IN THE LAGUNA DE BAY REGION
WHEREAS, Republic Act No. 4850, as amended, empowers the Laguna Lake
Development Authority to issue such rules and regulations as may be necessary
to effectively carry out its mandated functions and purposes;
WHEREAS, the Environmental User Fee System was approved, under Board
Resolution No. 25, Series of 1996, for implementation in the Laguna de Bay
Region to enhance the lake's water quality by providing the lake users with an
incentive to reduce pollution and allocate their prevention and abatement
resources efficiently;
WHEREAS, for the proper and effective implementation of the aforementioned
system, the Laguna Lake Development Authority has formulated the Rules and
Regulations Implementing the Environmental User Fee System;
NOW, THEREFORE, foregoing premises considered and pursuant to the
provisions of Republic Act No. 4850, as amended by Presidential Decree No. 813,
Executive Order No. 927 and Presidential Decree No. 984, BE IT RESOLVED, as
it is hereby RESOLVED, to adopt the following Rules and Regulations
Implementing the Environmental User Fee System in the Laguna de Bay Region:
ARTICLE
General Provisions
Section 1. Title. These rules and regulations shall be known as the "Rules
and Regulations Implementing the Environmental User Fee System in the Laguna
de Bay Region". cralaw
Sec. 2. Objective. In order to make environmental efforts more effective, a

market-based policy instrument in the form of a user fee will be implemented to
complement the existing regulatory mechanisms. This environmental user fee
system is primarily aimed at reducing the pollution loading into the Laguna de
Bay by enjoining all dischargers of liquid waste to internalize the cost of
environmental degradation and enhancement into their business decisions or
actions.
cra law
Sec. 3. Scope. These rules and regulations shall apply to all development
projects, installations and activities that discharge liquid waste into and pose a
threat to the environment of the Laguna de Bay Region which covers industrial,
commercial, domestic and agricultural sources. These rules shall govern the
administration of discharge permits that are based on an assessment of fees or
charges on industrial and/or municipal effluents, including their application,
issuance conditions, modifications, sanctions and enforcement.c ralaw
Sec. 4. Definitions. When used in these rules and regulations, the following
terms and phrases shall have the indicated meanings unless clearly stated
otherwise:
a. "Authority" - refers to the Laguna Lake Development Authority. c ralaw
b. "Concentration" - is the amount of substance or pollutant in a

given volume of water or wastewater
commonly expressed as milligram per liter (mg/L). cralaw
c. "Discharge Permit" - is a clearance or legal authorization

granted by the Authority to discharge liquid
waste or wastewater of specified concentration and volume into
any sewer system or any water body that
directly or eventually drains into the Laguna de Bay for a
specified period of time. cralaw
d. "Effluent" - is a general term denoting any wastewater, partially

or completely treated, or in its natural raw
state or liquid waste flowing out through a pipe or a single outlet
structure from a manufacturing/industrial
plant or wastewater treatment plant. c ralaw
e. "Fixed Fee" - is a component of the user fee that will be charged

to each discharger to cover the cost of
administering the program and which will be based on volumetric
rate of discharge. c ralaw
f. "Liquid Waste" - is a waste in liquid state that comprises the

waste substance and/or in combination with
water. c ralaw
g. "Loading" - is the amount of pollutant being discharged which is

actually the product of the effluent quality
or concentration and the volumetric rate of discharge. cra law
h. "Pollution Control Officer" or PCO - is an officer of the plant or

establishment that
provides linkage between the Authority and the permit holder or
discharger and who
possesses the qualifications as PCO and is duly accredited by the
Authority. c ralaw
i. "Surcharge" - is the amount of fee charged on top of the assessed

user fee due to
misdeclaration of the applicant during the filing of the
application. c ralaw
j. "User Fee" - is a fee levied on the dischargers for the use of the
lake or its tributary
rivers and streams for waste disposal purposes according to each
unit of
discharge. cra law
k. "Variable Fee" - is a component of the user fee that will depend on
the strength or
concentration of the discharge.
l. "Volumetric Rate of Discharge" - is the rate at which the effluent is
discharged which is usually expressed in cubic meters per day. chanrobles virtu al law librar y
ARTICLE II
Discharge Permit
Sec. 5. Requisites for Discharge Permit. Any person who shall discharge, in
any manner, liquid waste into the Laguna de Bay Region shall secure a discharge
permit from the Authority. Such person shall file an application using the
prescribed forms, under oath by the Chief Executive Officer or his duly authorized
representative, in two (2) copies and supported by the official receipt of the filing
fee and by such documents, information and data as may be required by the
Authority, including but not limited to the following:
a. A copy of the applicant's LLDA Clearance;
b. Engineer's Report containing such information as the declaration of
production capacity stating the quantity or volume and the generic
name(s) of product(s), the nature and character of applicant's waste,
its chemical composition, total daily volume of discharge of raw waste,
treatment process and estimated treatment efficiency, if available, and
the total daily volume of water consumption and discharge of finally
treated waste or effluent. Such engineer's report shall be signed by a
licensed engineer;
c. Statement of the final cost incurred in the installation of the pollution
control device, if any, and its annual maintenance costs;
d. A copy of the Certificate of Accreditation of the Pollution Control Officer
duly issued by the Authority, or appointment/designation as such by
the Chief Executive Officer;
e. Payment of the User Fees as assessed by the Authority;
f. Other documents as may be required by the Authority.
In case of any written opposition to the application for such permit, the Authority
may conduct a public hearing on the said application, provided that, the
discharge permit may only be issued after the conduct of a public hearing, upon
compliance by the proponent of the conditions of the permit and submission of a
performance bond or any guarantee which will answer for any future
environmental damage. cra law
Sec. 6. Processing of Application for Discharge Permit. The application for

discharge permit shall be processed after all the above requirements shall have
been duly complied with and submitted to the Authority and the filing fee therefor
duly paid. The filing fee is in the amount of Php1,150.00, adjustable every year. cralaw
The Authority shall, within thirty (30) days from receipt of all the
requirements cited in these Rules and Regulations, act on the application for a
discharge permit either by issuing the corresponding permit upon showing of
compliance with the requirements or by denying the application in writing stating
the reason or reasons thereof.cral aw
Sec. 7. Approval and Issuance of Discharge Permit. The discharge permit

shall be issued subject to such conditions as the Authority may impose including,
but not limited to:
a. payment of user fees for the use of the lake or its tributary rivers and
streams as a receiving water body for wastewater discharges;
b. compliance to water quality standards; and
c. monitoring and data collection requirements which will inform the
Authority regarding the dynamic condition of the lake, and will form
the basis for future permit modifications.
Failure to pay the user fee for any year or period shall be a sufficient ground for
the revocation of the permit. Arrears shall be paid in full before a new permit is
issued unless the Authority considers payment on installment upon application of
the discharger.cra law
Sec. 8. Assessment of User Fees. The total annual user fees of a permit
applicant or discharger for the current year shall be assessed based on the data
provided by the applicant in the application form and previous year's self-
monitoring reports, if any, the Industrial Effluent Guide, and other data available
at the Authority. For subsequent years, surcharge or credit will be applied
depending on the accuracy of previous year's assessment or actual discharge
characteristics.
c ralaw
Sec. 9. Surcharges and Credits on Annual User Fees. In the event that
actual discharge loadings are greater than those allowed, the Authority shall
impose surcharges upon renewal of the discharge permit equivalent to the excess
loading times the applicable user fee rates plus five (5) percent of this amount
per month. on the other hand, if the actual discharge loadings are less than those
allowed, the permit holder shall be entitled to a refund or credit of a portion of
the variable fee corresponding to the reduced loading. The allowable exceedance
must be within 20 percent of the allowable discharge loading as specified in the
permit and must not be more than two (2) consecutive periods or quarters. cralaw
In case actual discharge conditions in terms of loadings and duration are in

excess than what are allowed in the preceding paragraph, the Authority shall
suspend or revoke the permit, and/or impose other sanctions as provided for by
these Rules and Regulations, as the case maybe. c ralaw
Any surcharge or credit will be determined upon renewal of the permit and shall
be incorporated into the permit fee assessment for the coming year. c ralaw
Sec. 10. Payment Scheme. The variable component of the user fee maybe
paid in full or in equal quarterly installments. Full payment made within fifteen
(15) days after release of assessment at the time of filing shall be entitled to a
twenty (20) percent discount. Late payment of quarterly installments shall be
imposed a five (5) percent per month surcharge without prejudice to the
imposition of other fines and penalties. Schedule of quarterly payments shall be
specified in the Discharge Permit. c ralaw
Sec. 11. Disapproval of Application for Discharge Permit. In case the
application is disapproved, a petition for reconsideration may be filed within ten
(10) days from receipt of written notice of such disapproval. The petition shall be
decided upon by the Authority within fifteen (15) days from the date of filing. The
decision of the Authority on the said application shall become final and
executory.cralaw
Sec. 12. Appeals. The decision of the Authority approving or disapproving

applications for discharge permit may be appealed to the Secretary of the
Department of Environment and Natural Resources (DENR) within fifteen (15)
days from receipt of written notice of such decision. Said appeal shall not stay the
execution of the decision of the Authority unless ordered otherwise by the
Secretary of the DENR. cralaw
Sec. 13. Renewal of the Discharge Permit. The discharge permit may be
renewed by filing an application for renewal in two (2) copies on forms prescribed
by the Authority at least thirty (30) days before its date of expiration and
accompanied by a filing fee in accordance with the Schedule of Fees. The
application shall be executed under oath by the Chief Executive
Officer/owner/operator or his/her duly authorized representative. The renewal
application shall not be entertained unless and until all previously assessed user
fees or pollution charges shall have been paid in accordance with the approved
payment scheme, and the owner or operator shall have complied with all other
previously imposed conditions. cralaw
Failure to renew during the specified period shall be subject to the penalties
under Sec. 32 of these Rules and Regulations. cra law
Sec. 14. Grounds for Suspension/Revocation of Permits. After due notice

and hearing, the Authority may suspend or revoke any permit issued under these
rules on any of the following grounds:
a. Non-compliance with, or violation of any provisions of R.A. 4850 as
amended, P.D. 984 or its implementing rules and regulations
particularly the water quality standards, these Rules and Regulations,
and/or permit conditions;
b. False or inaccurate information stated in the application for permit
which led the Authority to issue the permit;
c. Refusal to allow lawful inspections;
d. Non-payment of user fees due in accordance with the schedule of fees
and payment scheme as provided for under these rules and/or permit
conditions;
e. Other lawful and valid causes as provided for in these rules and
regulations.
Sec. 15. Effect of Disapproval of Application or Suspension or

Revocation of Discharge Permit. Disapproved applications or suspended or
revoked discharge permits shall not grant any right or privilege to the applicant
or former permit holder to discharge its liquid waste into the environment. If the
applicant proceeds to discharge despite disapproval of application or
suspension/revocation of discharge permit, the Authority shall immediately issue
an Ex-parte Cease and Desist Order directing the discharger to discontinue
from further discharging its liquid waste into the lake or its tributary rivers, or
stoppage of discharger's operations, and impose the fines and penalties at the
existing rate applicable and provided for by law, without prejudice to criminal
prosecution under R.A. No. 4850, P.D. 813, E.O. 927, and P.D. 984, and other
applicable laws. c ralaw
Sec. 16. Posting of Permit. The permit holder shall display its permit within
the premises of the plant or installation or in a conspicuous place preferably at
the main gate of the establishment in close proximity to the company/plant name
and in such manner as to be clearly visible and accessible to the public. cra law
Sec. 17. Transfer of Permit. The discharge permit shall be non-transferable.

In case of sale or transfer of ownership or control of the installation and/or
facilities the transferee shall notify the Authority of the fact of transfer providing
the name and address of the transferee and attaching the document evidencing
the transfer and file an application for transfer of the permit in his name. c ralaw
Sec. 18. Life and General Conditions of Discharge Permit. A discharge

permit is valid for the period specified therein, for a normal period of one (1) year
from the date of issuance, unless for a limited period or suspended sooner or
revoked. cralaw
A suspended or revoked permit maybe re-issued during the original life of the
permit only after the permit holder has fully complied with the water quality
standards, these Rules and Regulations, permit conditions, and/or payment of
fees, fines, penalties and damages to the Authority and to the affected party. The
reinstated permit shall expire according to its original expiry date.c ralaw
ARTICLE III
Monitoring
Sec. 19. Self-Monitoring Reports. The Authority shall require the permit
holder or discharger to submit a quarterly self-monitoring report on prescribed
form under oath before a Notary Public signed by the Chief Executive Officer and
the Pollution Control Officer. The report shall contain specifically the quality and
quantity of wastes discharged daily or periodically, as the case may be, the
characterization and laboratory analyses conducted preferably by a duly licensed
and accredited laboratory of the Authority, and such other material information
the Authority may require from the discharger. cralaw
The self-monitoring report shall be submitted to the Authority within five (5) days
after every end of the quarter or period allowed under the discharge permit. c ralaw
Sec. 20. Plant Operational Problems. In the event that the permit holder
is temporarily unable to comply with any of the conditions of the permit due to a
breakdown of the installation covered by the permit or for any cause, he/she or
his/her Pollution Control Officer shall notify the Authority within twenty four (24)
hours of such fact and its cause/or causes and likewise the remedial steps to
contain or solve the problem and to prevent its recurrence; including the details
of any plan toward reconstruction or repair/rehabilitation or upgrading of such
installation.
cra law
Sec. 21. Compliance Monitoring Protocols. The Authority shall subject

permit holders to periodic monitoring inspections. The permit holder shall ensure
that all facility-related documents (maps, diagrams, permits, manufacturing
process documentations, etc.,) and facility employees are available during
monitoring activities. cra law
The Authority shall inspect the establishment, plant or facility and the treatment
facilities of the permit holder or discharger at any time to determine compliance
with the water quality standards, rules and regulations and permit conditions.
The water quality parameters relevant to the plant operation and type of industry
shall be determined at least once a year. Parameters that serve the basis of the
user fee maybe determined more than once a year. cralaw
Sec. 22. Access to Premises. The permit holder shall provide immediate,
safe and adequate access to authorized representatives of the Authority or
inspectors after showing the proper LLDA Inspector's ID and mission order. cralaw
ARTICLE IV
User Fees for Liquid Waste Discharges
Sec. 23. User Fees. A user fee shall be assessed for any discharger that
makes use of the lake or its tributary rivers and streams for the purpose of
disposing liquid waste or wastewater. It shall be comprised of the fixed fee based
on the volumetric rate of discharge and the variable fee, which will be based on
the unit load of pollution. The user fee shall be the total of the fixed fee and the
variable fee. c ralaw
The user fee shall form part of the requirements of the Authority in adjudicating
pollution cases. cra law
Sec. 24. Schedule of Fixed Fees. The fixed fee will cover the cost of the
program administration and will be dependent on the volumetric rate of discharge
and according to the following schedule:
Volumetric Rate of Discharge Fixed Fee
Within 30 cu.m./day Php 5,000.00
More than 30 but less than 150 cu.m./day Php10,000.00
More than 150 cu.m./day Php15,000.00
Sec. 25. Schedule of the Variable Fees. The variable fee will be assessed
based on the unit load of pollution which is computed as the product of the
volumetric rate of discharge and the effluent concentration. The following
schedule of the variable fee shall apply:
Effluent Concentration Variable Fee
Within 50 mg/L BOD Php 5.00 per kg BOD
Above 50 mg/L BOD Php30.00 per kg BOD
The user fee rates for other water quality parameters that will eventually be
covered by the system shall be determined by the Authority and approved by the
Board of Directors. cralaw
Sec. 26. Adjustment of Fee Rates. The user fees may be adjusted from
time to time but not within the year of latest adjustment to reflect desired
environmental objectives and updated targets in the reduction of pollution
loadings. Any change in the user fee rates shall be subject to the approval of the
Board of Directors.
cralaw
ARTICLE V
Prohibitions
Sec. 27. General Prohibitions.
a. No person, natural or juridical, government office/agency, or public
corporation shall undertake development program and/or project
within the Laguna de Bay Region without first securing clearance
from the Authority.
b. No person, natural or juridical, shall throw, run, drain or otherwise
dispose into any of the water and/or land resources of the Laguna de
Bay Region, or cause, permit, suffer to be thrown, run, drain, allow to
seep, or otherwise dispose thereto, any organic or inorganic matter
or any substance in liquid form that shall cause pollution thereof.
c. No person shall dispose of toxic and/or hazardous wastes without
first securing a written authorization from the Authority.
Sec. 28. Specific Prohibitions. No person, natural or juridical, shall perform,
cause or undertake any of the following activities without first securing a permit
from the Authority:
a. The increase in volume or strength of any wastes in excess of the
permitted discharge specified under any existing permit; and
b. The construction or use of any outlet or unauthorized by-pass
channels for the discharge of any untreated waste, gaseous, liquid or
solid, directly into the water and/or land resources of the Laguna de
Bay Region.
Sec. 29. Other Prohibitions. These acts are likewise prohibited under these
rules and regulations:
a. Willful violation of an order or decision duly promulgated by the
Authority;
b. Refusing, obstructing or preventing the entry of authorized
representatives of the Authority into any property devoted to
industrial, manufacturing, processing or commercial use for the
purpose of inspecting or investigating to determine compliance of the
project with the Authority's program and/or the conditions therein
relating to pollution or possible or eminent pollution; and
c. Misconduct in the presence of the General Manager or any of person
who willfully fails or refuses, without just cause, to comply with
summons, subpoenas, subpoena duces tecum issued by the General
Manager or by the duly designated Hearing Committee or, being
present at a hearing, session or investigation, refuses to be sworn as
a witness or to answer questions when lawfully required to do so.
ARTICLE VI
Penalties
Sec. 30. General Administrative Fine. Any person, natural or juridical,
found violating any lawful order or decision of the Authority or failing to comply
with these Rules and Regulations and/or conditions embodied in the clearances or
permits issued by the Authority shall be liable to an administrative fine in an
amount not exceeding five thousand pesos (Php5,000.00) in addition to such
other sanctions stated in these Rules and Regulations. The imposition of the
aforesaid fine does not preclude the Authority from instituting, before the
appropriate Courts, the proper criminal or civil action as the case may warrant. cralaw
Sec. 31. Penalty for Failure to Abate Pollution. Any person found violating
or failing to comply with any order, decision or regulation of the Authority for the
control or abatement of pollution shall pay a fine not exceeding five thousand
pesos (Php5,000.00) per day for every day during which such violation or default
continues. The Authority shall hereby be authorized and empowered to impose
the fine after due notice and hearing. cralaw
Sec. 32. Penalty for Violating the Prohibited Acts. Any person who shall
violate any of the provisions of Article V of these rules and regulations or any
order or decision of the Authority shall be liable to a penalty of not to exceed one
thousand pesos (Php1,000.00) for each day during which such violation or default
continues, or by imprisonment of from two (2) years to six (6) years, or both fine
and imprisonment after due notice and hearing, and in addition such person
maybe required or enjoined from continuing such violation. cra law
Failure to renew the discharge permit within the period specified under Sec. 13 of
these Rules and Regulations shall be liable to a penalty of not to exceed one
thousand pesos (Php1,000.00) per day during which such violation or default
continues.cra law
If the violator is a corporation, partnership or association, the President or Chief

Executive Officer of the organization concerned shall be liable therefor.
cralaw
Sec. 33. Penalty for Refusing Entry. Any person, natural or juridical, who
shall refuse, obstruct or hamper the entry of duly authorized representative of
the Authority into any property of the public... .. processing or commercial
use for the purpose of inspecting or investigating the conditions therein relating
to pollution or compliance to other provisions of these Rules and Regulations,
shall be liable to a fine not exceeding five thousand (Php5,000.00) pesos and
contempt upon application with the proper courts and/or the actions that the
Authority may deem necessary and appropriate. cra law
Sec. 34. Payment for Damages. Any person, natural or juridical who violates
the provisions of these Rules and Regulations or fails to perform any condition
imposed in a permit or clearance, or refuses to obey a duly promulgated
order/decision of the Authority, thereby causing damage to the lake's resources
or other surface water in the Laguna de Bay Region, shall be liable to pay the
Authority and the affected parties for such damages in an amount to be
determined by the Authority. c ralaw
Sec. 35. Non-Payment of Fines. The fines so imposed shall be paid to the
Authority and failure to pay the fine in any case within the time specified in the
above-mentioned order or decision shall be sufficient ground for the Authority to
order the closure or stoppage of the operation of the establishment being
operated and/or managed by said person or persons until payment of the fines
shall have been made. Payment of the fines does not ipso facto operate to vest
on the violator the right to resume operation. cralaw
ARTICLE VII
Final Provisions
Sec. 36. Transitory Provisions. Any person, natural or juridical, who before
the effectivity of these Rules and Regulations have already complied with the
requirements of, or have been issued permit or clearance pursuant to the
provisions of R.A. 4850, as amended, shall, upon presentation of proof of such
compliance that is acceptable to the Authority, be considered as having complied
with the requirements of these Rules and Regulations. c ralaw
Sec. 37. Phaseout of the Authority to Construct and Permit to

Operate. The Discharge Permit shall henceforth replace collectively the existing
Authority to Construct and Permit to Operate for Wastewater Treatment
Facilities.
c ralaw
Sec. 38. Effluent Standard for Biochemical Oxygen

Demand. For purposes of these Rules and Regulations, the Authority hereby
adopts a uniform effluent standard for Biochemical Oxygen Demand (BOD) of 50
mg/L, regardless of strength of the raw wastewater, if discharge will directly or
eventually drain to the Laguna de Bay or its tributary rivers and streams. cra law
Sec. 39. Separability Clause. If any Sec. or provision of these Rules and
Regulations is held or declared unconstitutional or invalid by a competent court,
the other Sec.s or provisions hereof shall continue to be in force as if the Sec.s or
provisions so annulled or voided had never been incorporated herein. cralaw
Sec. 40. Amendments. These Rules and Regulations may be amended

and/or modified from time to time by the Authority. c ralaw
Sec. 41. Effectivity. These Rules and Regulations shall take effect fifteen (15)
days after publication in a newspaper of general circulation. cra la w

Republic Act No 4850

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Republic Act No 4850

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REPUBLIC ACT NO.

4850 July 18, 1966

DECLARATION OF POLICY AND CREATION OF AUTHORITY

a) To succeed on its corporate name;cralaw

b) To sue and be sued in such corporate name;cralaw

c) To adopt, alter and use a corporate seal;cralaw

d) To adopt, amend, and repeals its by-laws;cralaw

MANAGEMENT AND PERSONNEL

d. To approve the annual and/or supplemental budgets of the Authority; and

g. Perform such other functions as may be provided by law.

Sec. 41. Definition of Terms.

10) Subsidiary Corporation. A corporation that is organized or a corporation already in existence

PRESIDENTIAL DECREE NO. 813

AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NUMBERED FORTY EIGHT

WHEREAS, rapid expansion of Metropolitan Manila, the suburbs and the

WHEREAS, inflow of polluted water from the Pasig River, industrial,

WHEREAS, floods in Metropolitan Manila area and the lakeshore towns

WHEREAS, the Laguna Lake Development Authority is empowered under

WHEREAS, under existing laws, other government agencies have varying

WHEREAS, in view of the foregoing consideration, the passage into law of

Section 1. Sec. one of Republic Act Numbered Forty-Eight Hundred and

"(a) To make a comprehensive survey of the physical and natural

"(f) To plan, program, finance and/or undertake infrastructure projects

"(i) To reclaim or cause to be reclaimed portions of the Lake or undertake

"(k) For the purpose of effectively regulating and monitoring activities in

"(m) The provisions of existing laws to the contrary notwithstanding, to

"(n) To act in coordination with existing governmental agencies in

"(p) Undertake studies on the improvement and maintenance of the

"Sec. 4-B. The Authority is hereby empowered to collect annual fees as

"(i) To purchase, hold, alienate, mortgage, pledge or otherwise dispose

"Sec. 6. Capitalization and Financing. The Authority shall have an

"Of the preferred shares of stock of 300,000 a minimum of 110,000

"The officials next in rank to the above-mentioned members shall serve

1. To formulate, prescribe, amend and repeal rules and regulations

2. To appoint and fix the compensation of all officials from division

3. By a majority vote of all members of the Board, to suspend,

4. To approve the annual and/or supplemental budget to the

5. To do such other acts and perform such other functions as

1. Submit for consideration of the Board the policies and

2. Execute and administer the policies, plans, programs and

3. Direct and supervise the operation and internal administration

4. Appoint officials and employees below the rank of division

6. Submit to the NEDA an annual report and such other reports as

7. Perform such other functions as may be provided by law."

Sec. 19. Sec. 28 of the same Act is hereby repealed.

1. An Administrative Division which shall be responsible for providing

2. A Legal Division, to be headed by a Legal Counsel who shall

3. A Finance Division which shall be responsible for providing staff

4. A Project Management Division which shall be responsible for

5. A Planning and Project Development Division which shall be

6. An Engineering and Construction Division which shall be

"The business and activities of each of these divisions shall be directed

Sec. 24. Sec. 34 of the same Act is hereby repealed.

"Sec. 34-A. Supervision by the NEDA. The Authority shall be directly

"If the violator be a corporation, partnership of association, the officer or

"The Authority is hereby authorized to pursue separate civil actions for

This Decree shall take effect upon its approval.

EXECUTIVE ORDER NO. 927

FURTHER DEFINING CERTAIN FUNCTIONS AND POWERS OF THE LAGUNA

NOW, THERFORE, I, FERDINAND E. MARCOS, President of the Philippines, by

Sec. 3. Collection of Fees. The Authority is hereby empowered to collect fees

The officials next-in-rank to the above-mentioned members shall serve as

Sec. 6. Capitalization and Financing. The Authority shall have an authorized

The authorized capital stock of Seven Hundred Million Pesos (PhP700,000,000)