The concerned Sanggunian must be willing to pass ordinances to allow the proponent to recover costs. Consumer payments must meet all costs, including the recovery of capital. Important ordinances would include:
• Grant of permission to the DOT operator to disconnect any water supply service for non-payment of bills
• Grant of permission to the DOT operator to charge a non-refundable service connection fee and a refundable deposit for service connection and water meter
• Allowing the BOT operator to establish a rate per cubic meter with built in escalation mutually acceptable to the BOT operator and the LGU. The agreed water tariff schedule should enable of the installed cost of the project including repayment of the principal, interest expense, and reasonable return to equity