Laguna Lake Development Authority

Board Resolution No.293, Series of 2006

APPROVING THE RAW WATER PRICE FOR NATIONAL POWER CORPORATION (NPC) POWER GENERATION

            WHEREAS, the Laguna Lake Development Authority (LLDA) by virtue of R.A. No. 4850 as amended has been granted water rights over Laguna de Bay and other bodies of water within the Laguna de Bay Region, by virtue of which it shall have exclusive jurisdiction to issue permit for the use of all surface water for any project or activities in or affecting the said Region;

             WHEREAS, pursuant to the afore-mentioned LLDA Charter, the Authority is empowered to collect fees and other charges for the use of lake waters and discharge of water into the water systems;

             WHEREAS, the recently concluded study on Raw Water Pricing under Task 1 (Expansion of the Environmental User Fee System) of LISCOP Component 2 strongly recommends the collection of fee for raw water uses including for power generation by the National Power Corporation (NPC);

             WHEREAS, raw water pricing is essential to this type of lake user and shall be determined according to its economic value so as to attain efficiencies and sustainability in the development and allocation of water resources; and

            WHEREAS, there is a need to raise revenue to fund the proper management and protection of the lake and its tributary rivers.

             NOW THEREFORE, foregoing premises considered, BE IT RESOLVED, as it is hereby RESOLVED to approve the raw water use fee for NPC power generation, as follows:

             1.            The power plants that will be charged for drawing raw water from the Laguna de Bay for hydropower are the Kalayaan Pumped Storage Power Plant (KPSPP), the Caliraya-Botocan-Kalayaan Hydroelectric Plants and other future power plants that will abstract raw water from the Laguna de Bay.

2.            The NPC annual charge for raw water use shall be based on PhP0.0926 per cubic meter for hydropower; as clearly indicated under the Technical Report No. 1-6-2 on the Policy for Raw Water Abstraction Pricing.

3.            The above-stated rate shall be periodically reviewed and adjusted as warranted and such shall be imposed after due consultation and upon approval by the Board of Directors.

Resoluti on No. 293 Series of 2006

Page 2                RESOLVED FURTHER, as it is hereby RESOLVED, that the above annual raw water charge shall be recommended to the Office of the President

             for final approval. 

 RESOLVED FINALLY, that the subsequent adjustments in annual raw water charge shall be approved by the LLDA Board of Directors.

             APPROVED on 27 October 2006.

ATTESTED BY:

(SGD) ATTY. JOAQUIN G. MENDOZA

      Board Secretary v