WHEREAS, in view of the high-priority environmental issues, particularly the problem of the deteriorating water quality in many of the country’s lakes, rivers and coastal areas, the World Bank proposed in 1993 the adoption of a system of economic incentives to complement the existing government command-and-control approach to pollution prevention and abatement;

WHEREAS, in consideration of above proposal, the World Bank Environmental Sector Study, under the  Metropolitan Environmental Improvement Project (MEIP)  and through the initiative of the Department of Environment and Natural (DENR), recommended that a pollution charge program be implemented nationwide;

WHEREAS, under Section 4-12 of R.A. No. 4850, as amended, the LLDA shall have exclusive jurisdiction to issue permit for the use of Laguna de Bay for any projects or activities in or affecting the lake and to impose necessary  safeguards for lake quality control and management;

WHEREAS, under Section 4-13 of R.A. No. 4850 and Section 3 of Executive Order No. 927, which further defines certain functions and powers of the LLDA, the LLDA is empowered to collect annual fees for the use of the lake waters and its tributaries for all beneficial purposes including waste disposal purpose, among other uses;

WHEREAS, considering LLDA’s exclusive authority to issue permit and collect annual fees for the use of lakewaters and after extensive discussion with the DENR and other stakeholders of the lake, and implementation of the Environmental Users Fee System in the Laguna de Bay Basin is deemed essential to enhance the environmental quality of the Region by providing the lake users with an incentive to reduce pollution and allocate their prevention and abatement resources efficiently;

NOW, THEREFORE, foregoing premises considered, BE IT RESOLVED, as it is hereby RESOLVED, to adopt the Environmental Users Fee System in the Laguna de Bay Basin starting 1997 and  approve the Work and Financial  Plan attached as Annexes A, B and C  for its operationalization;

Board Resolution No. 25, S. 1996

Page 2

RESOLVED, Further, that the budgetary requirement of  Twenty Seven Million Three Hundred Twenty Six Thousand Pesos (P27.326M) be approved, as it is hereby approved,  for the  implementation of the system for the first year to form as an integral part of  LLDA’s Annual Corporate Operating Budget for CY 1997 and be sourced or appropriated out of the ENVIRONMENTAL USERS FEE REVENUE;

RESOLVED, Finally,  that disbursement of the above funds be subject to the pertinent accounting and auditing rules and regulations.

APPROVED:
	

Board of Directors’ Meeting

Held on November 19, 1996