Respondent filed on October 24, 2002 an application with the National Water Resources Board (NWRB) for the issuance of a Certificate of Public Convenience (CPC) to operate and maintain waterworks system in sitios San Vicente, Fatima, and Sambag in Barangay Bulacao, Cebu City. At the initial initial hearing hearing of December December 16, 16, 2002 during during which which respondent respondent submitted submitted proof proof of complianc compliance e with jurisdictio jurisdictional nal requirements of notice and publication, herein petitioner Metropolitan Cebu Water District, a government-owned and controlled corporation created pursuant to P.D. 198 which took effect upon its issuance by then President Marcos on May 25, 1973, as amended, appeared through its lawyers to oppose the application. In its Opposition, petitioner prayed for the denial of respondent’s application on the following grounds: (1) petitioner’s Board of Directors had not consented to the issuance of the franchise applied for, such consent being a mandatory condition pursuant to P.D. 198, (2) the proposed waterworks would interfere with petitioner’s water supply which it has the right to protect, and (3) the water needs of the residents in the subject area was already being well served by petitioner. granted Adala’s application after hearing and an ocular inspection of the area and denied MCWD’s MFR. denied the appeal and upheld NWRB Decision. RTC denied MFR.
. — No shall be granted to any other person or agency for domestic, industrial or commercial water service within the district or any portion thereof unless and except to the extent that the board of directors of said district consents thereto by resolution duly adopted, such resolution, however, shall be subject to review by the Administration. There being no such consent on the part of its board of directors, petitioner concludes that respondent’s application for CPC should be denied.
A is formal written authority issued by quasi-judicial bodies for the operation and maintenance of a public utility for which a franchise is not required by law and a CPC issued by this Board is an authority to operate and maintain a waterworks system or water supply service. On the other hand, a is privilege or authority to operate appropriate private property for public use vested by Congress through legislation. Clearly, therefore, a CPC is different from a franchise and Section 47 of Presidential Decree 198 refers only to franchise.
The provision must be deemed void ab initio for being irreconcilable with Article XIV Section 5 of the 1973 Constitution which was ratified on Jan. 17, 1973 – the constitution in force when P.D. 198 was issued on May 25, 1973. . No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines at least sixty per centum of the capital of which is owned by such citizens, nor shall such franchise, certificate, or authorization be exclusive in character or for a longer period than fifty years. x x x This provision has been substantially reproduced in Article XII Section 11 of the 1987 Constitution, including the prohibition against exclusive franchises.
A " " is a business or service engaged in regularly the public with some commodity or service of public consequence such as electricity, gas, , transportation, telephone or telegraph service. x x x (National Power Corp. v. CA)
We agree with petitioner that the NAWASA is a public utility , as well as consolidate and centralize all water supplies and drainage systems in the Philippines. x x x (National Waterworks and Sewerage Authority v. NWSA Consolidated Unions)
