Section 5Sec./Art. 5

Certificate of Public Convenience and Necessity, License or Permit. For purposes of this Act, except with respect to the provision on exclusivity of rights stated in Article XII, Section 11 of the 1987 Philippine Constitution, the Concession Agreement shall serve as the certificate of public convenience and necessity, license, or permit of the grantee for the operation of its waterworks and sewerage system.

The Concession Agreement between the MWSS and the grantee shall remain valid unless otherwise terminated, after due notice and hearing for reasons provided in the Concession Agreement, or invalidated by a court of competent jurisdiction or by a government agency authorized by law to do so when national security, national emergency, or public interest so requires, or unless modified or amended under this Act or any subsequent law.

When public interest for affordable water security so requires and upon application of the grantee, MWSS shall be authorized to approve the amendment of the Concession Agreement to extend its term up to the term of the franchise after the appropriate notice and hearing.

The grantee, its successors or assignees, shall apply for a certificate of public convenience and necessity, license, or permit when a new regulatory framework for water service providers is established by law or when required by the Regulatory Office, which will supersede the terms and conditions of the Concession Agreement: Provided, That if the public service function and the recovered and retained assets of the MWSS, as defined in the Concession Agreement, are privatized by law, the grantee shall have the right to match the highest complaint bid after a public bidding for MWSS-owned assets in the waterworks and sewerage system in the Franchise Area.

The right to match shall be exercised within thirty (30) days from receipt of written notice of the amount of the highest complaint bid, and the grantee shall have a period of ninety (90) days prior the bid price: Provided, further, That the bidding process shall be in accordance with the Commission on Audit Circular No. 89-296 or the Audit Guidelines on the Divestment or Disposal of Property and Other Assets of National Government Agencies and Instrumentalities, Local Government Units and Government-Owned or Controlled Corporations and their Subsidiaries or any amendments thereto and other related laws or issuances.