Section 1Sec./Art. 1

National and Scope of Franchise. - Subject to the provisions of the Constitution and applicable laws, rules and regulations, there is hereby granted to Calapan Waterworks System and Development Corporation, hereunder referred to as the grantee, its successors or assigns, a franchise to construct, install, operate and maintain for commercial purposes and in the public interest, a water supply and sewerage system for the purpose of distributing water for sale and for sanitation in the City of Calapan, Province of Oriental Mindoro, and for such purpose, the grantee shall have the rights and privileges to:

(a)To construct, maintain and operate water mains, pipes, conduits, reservoirs or dams on land owned or duly acquired or obtained by the grantee for the said purpose.

(b)To supply, sell, furnish such water to any person, corporation or public or private concern within the limits of the said City for domestic or manufacturing uses for any other use to which water may be put, and to charge and collect a schedule of prices and conventional rates for the use of said water which schedule of prices and rates shall at all times be subject to regulation by the National Water Resources Board, or any other government agency concerned thereon.

(c)To construct, maintain, and operate such systems of sanitary sewers as may be necessary for the proper sanitation of the City, and to charge and collect a schedule of fees which shall at all times be subject to regulation by the government entity in charge of this activity; and

(d)To purify the sources of the water supply, the reservoirs and the dams subject to the approval of the Department of Health and/or any other government agency concerned thereon, and to regulate the control and use, and prevent the waste of water.