GRANTING CLEARANCE TO ASSIST IN THE MANAGEMENT OF THE IPO WATERSHED AREAS TO THE MANILA WATER COMPANY, INC. (MWCI) AND MAYNILAD WATER SERVICES, INC. (MWSI)

Ipo Watershed is vital to the sustainability of quality water supply
for the survival of Metro Manila being the transit point of water coming
from the Angat Watershed before reaching the La Mesa Watershed
Reservoi. The stability, productivity, and functionality of the Ipo
Watershed is fast deteriorating brought about by the uncontrolled and
massive rate of forest degradation due to illegal settlements, illegal
forest products harvesting, frequent destructive fires encroaching into
the natural forests, and conversion of forest lands for cash crops
production, all together acting in unison resulting to massive sand,
silt and rock deposition into the Ipo Dam Reservoir.

To ensure the timely and efficient implementation of the
rehabilitation, protection and management of the Ipo Watershed Area and
to arrest its spiraling deterioration, pursuant to Republic Act No.
7586, otherwise known as the “National Integrated Protected Areas System
(NIPAS),” the authority to manage the Ipo Watershed Areas (as defined
in Proclamation No. 391, placing the Ipo Watershed under joint
management by the Director of Forestry, now DENR Secretary and the
Administrator of the Metropolitan Waterworks and Sewerage System), and
DENR Administrative Order No. 2005-23 entitled “Adoption and
Implementation of Collaborative Approach to Watershed Management,”
clearance is hereby granted to the MANILA WATER COMPANY, INC. (MWCI) and
the MANILA WATER SERVICES, INC. (MWSI) to assist in the management of
the Ipo Watershed areas subject to the following guidelines:

Section 1. Joint Authority. The MWCI and MWSI are
jointly authorized and directed to negotiate and enter into agreement
with a private entity with proven capabilities and expertise in the
rehabilitation, protection, and management of critical watershed areas.

Section 2. Agreement. The Authority referred to in
Section 1 shall refer to the implementation of the rehabilitation,
protection, and development programs solely for the rehabilitation,
protection, and management of the Ipo Watershed consistent with DENR
rules and regulations.

Section 3. Repealing Clause. Any Memorandum Orders and Circulars inconsistent herewith are hereby repealed or modified accordingly.

Section 4. Effectivity. This Memorandum Order shall take effect fifteen (15) days after publication in a newspaper of general
circulation and receipt of a copy hereof by the Office of the National
Administrative Register.

Adopted: 27 May 2009

(SGD.) JOSE L. ATIENZA, JR.
Secretary