Section 5.3

- The following shall be the obligations of the PROPONENT-OPERATOR:

1. It shall be responsible for the financing, development, construction, operation, maintenance and management of WATER SYSTEM FACILITY; The PROPONENT shall see to it that the PROJECT is in compliance with the technical and operating specifications as stated in the PROPONENT's Technical Proposal (ANNEX B);

2. It shall provide its own funds, materials, plants and equipment necessary for the expeditious implementation of the FACILITY;

3. It shall complete the construction of the FACILITY within the timeframe stated in the PROPONENT's Technical Proposal (ANNEX B) from receipt of the Notice to Proceed, as indicated in the Instruction to Bidders, save in case of valid extension/suspension of contract time granted and/or additional/extra work ordered to be done by the LGU outside of the requirements of the original plans and specification therefore;

4. It shall, at all times during the construction, operation, and management of the FACILITY, comply with, and secure at its own cost all legal requirements, permits, licenses and approvals;

5. It shall pay all the electrical bills, water, gas and other rates payable during period of construction as well as during the operation of the FACILITY including the Real Property Taxes;

6. It shall not make or suffer any alteration or changes in plans and specifications during the construction or alteration/changes in the completed structure during the operation period without the written consent of the LGU; The LGU in case of request for alteration/changes shall act on the same within ______ calendar days, otherwise the request shall be considered as approved;

7. It shall not make or suffer any unlawful, improper, or offensive use of the premises, nor any use therefore other than the purpose for which the facility has been constructed per plans and specifications and contained in the technical proposal of the PROJECT-OPERATOR without the written consent of the LGU;

8. It shall operate and maintain the FACILITY based on accepted facility management practices and shall provide for repairs and replacement costs to ensure performance within the prescribed standards; and

9. It shall not keep and/or store in the building and its premises any injurious or prohibited drugs, substances or chemicals during the construction and concession period.