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SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
F irst R egular Session 
)
S E N A T E  
S.B. No. 
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•16 
OCT 11 
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Id ' . . i ' 
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^ Y :
Introduced by Senator JOSEPH VICTOR G. EJERCITO
AN ACT
ABOLISHIING THE IMPOSITION OF IRRIGATION SERVICE FEES 
AND SUCH OTHER RELATED FEES, AMENDING FOR THE 
PURPOSE CERTAIN SECTIONS OF REPUBLIC ACT NO. 3601, 
PRESIDENTIAL DECREE NO. 552 AND PRESIDENTIAL DECREE 
NO. 1702
EXPLANATORY NOTE
Section 9, Article II of the 1987 Philippine Constitution provides that: 
"The State shall promote a just and dynamic social order that will ensure the 
prosperity and independence of the nation and free the people from poverty 
through policies th at provide adequate social services, promote full 
employment, a rising standard of living, and an improved quality of life for 
all."
The Phihppines is considered as an agricultural country. Consisting 32 
percent agricultural lands out of the country's total land area with 51% and 
44% arable and permanent croplands, respectively. According to the 
Philippine Statistics Authority, share of agriculture sector in the country's 
GDP is 10% for the year 2014 and provides 30% share in the Coimtry's total 
employment.
However, despite its apparent importance to the country's economic 
value, locally produced products consistently dropped due to the 
propagation of cheaper imported agricultural products in the country, which 
is expected to worsen with the full implementation of the ASEAN Free Trade 
Agreement.
Irrigation is one of the primordial costs in the structure for different 
agricultural products. It highly affects cost and volume in agricultural 
productivity and is crucial in the production of basic local commodities.
This bill seeks the elimination of irrigation service fees collected by the 
National Irrigation Administration (NLA) and the institutionalization of a


genuinely just program that will accelerate irrigation development 
nationwide.
This bill was originally filed by Congressman Fernando Hicap of 
Anakpawis in close coordination with farmers organizations, irrigators 
associations and stakeholders in the agriculture sector.
sought.
In view of the foregoing, the immediate passage of this bill is earnestly
JOSEPH VICTOR G. EJERCITO


SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
F irst R egular Session 
)
(Stfirt of the ?  ‘ r ; i l.ir y
'16 
OCT 11 
P 5  5 9
S E N A T E
S.B. No. 1.199
K it
______ Introduced by Senator JOSEPH VICTOR G. EJERCITO______
AN ACT
ABOLISHIING THE IMPOSITION OF IRRIGATION SERVICE FEES 
AND SUCH OTHER RELATED FEES, AMENDING FOR THE 
PURPOSE CERTAIN SECTIONS OF REPUBLIC ACT NO. 3601, 
PRESIDENTIAL DECREE NO. 552 AND PRESIDENTIAL DECREE 
NO. 1702
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled.
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Section 1. Short Title. - "Ihis Act shall be known as the "Free Irrigation 
Services Act of 2016."
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to 
adhere to the principle of integrated and holistic approach of support services 
for cost-cutting measures in order to alleviate the farmer's destitute state, and 
nurture them to unleash their full potential as productive forces of society.
The State adheres to promote comprehensive rural development 
through increased agricultural production and the adoption of necessary and 
sound measures to accelerate the achievement of food sovereignty, equitable 
access to opportunities and sustained productivity as key strategies to raise 
the quality of life in rural areas and overall national development.
Toward this objective, it shall endeavor to provide the necessary and 
vital support services and assistance to farmers, including but not limited to 
inputs to production, production support, post-harvest facilities and 
irrigation services.
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Sec. 3. Termination of the Collection of Fees. - The collection of irrigation
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service fees (ISFs) and such other similar or related fees from beneficiaries of


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irrigation systems funded and constructed by, or under the administration of 
the National Irrigation Administration (NIA), including the collection of back 
accounts and the corresponding penalties thereof, shall all be terminated 
upon the passage of this Act.
Sec. 4. Cancellation of Back Accounts and Penalties. - Back accounts and 
corresponding penalties shall be cancelled and terminated upon the passage 
of this Act.
Sec. 5. Construction of National Irrigation Systems. - For the purpose of 
ensuring the necessary construction of irrigation systems administered by the 
NIA, the NIA shall be allowed to procure a loan in addition to the necessary 
inclusion of fund for construction of National Irrigation System in the annual 
General Appropriations Act (GAA).
Sec. 6. Government Subsidy for the Management of Irrigation Systems. - 
The State shall provide the necessary subsidies to farmers and irrigators 
associations and cooperatives to ensure the effective and grassroots-based 
management of irrigation systems, the funding of which shall be included in 
the Department of Agriculture's annual GAA.
Sec 7. Repeal of Section 2, Paragraph (c) of Republic Act No. 3601 entitled 
"An Act Creating the National Irrigation Administration". Section 2 is 
hereby amended to read as follows:
"Section 2. Powers and objectives. The NIA shall have the following 
powers and objectives:
X X X X
(c) To collect from the users of each irrigation system constructed 
by it such fees as may be necessary to finance the continuous 
operation of the system and reimburse within a certain period not 
less than twenty-five years the cost of construction thereof;
X X X X
Sec. 8. Repeal of Section 1, Paragraph (b) of Presidential Decree (PD) No. 
552 entitled "Amending Certain Sections of Republic Act Ntunbered 
Thirty-Six Hundred and One, entitled, "An Act Creating the National 
Irrigation Administration". Section 1. Section 2, Republic Act Numbered 
Thirty-Six Himdred and one, is hereby amended to read as follows:


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"Section 2. Powers and Objectives, — The NIA shall have the 
following powers and objectives:
X X X X
(b) To charge and collect from the beneficiaries of the water from all 
irrigation systems constructed by or imder its administration, such 
fees or administration charges as may be necessary to cover the cost 
of operation, maintenance and insurance, and to recover the cost of 
construction within a reasonable period of time to the extent 
consistent with government policy; to recover funds or portions 
thereof expended for the construction and/or rehabilitation *of 
communal irrigation systems which funds shall accrue to a special 
fund for irrigation development under section 2 hereof;
Unpaid irrigation fees or administration charges shall be preferred 
liens, first, upon the land benefited, and then on the crops raised 
thereon, which liens shall have preference over all other liens except 
for taxes on the land, and such preferred Hens shall not be removed 
tmtil all fees or administration charges are paid or the property is 
levied upon and sold by the National Irrigation Administration for 
the satisfaction thereof. Judicial actions for the collection of unpaid 
irrigation fees or charges, drainage fees or other charges which the 
National Irrigation Administration is authorized to impose and 
collect, shall henceforth be governed by the provisions of the Rules 
of Court of the Philippines for similar actions, the provisions of 
other laws to the contrary notwithstanding.
x x x x
Sec. 9. Repeal of Section 1, Paragraph (b) of Presidential Decree No. 1702 - 
entitled, "Amending Section 3 of Republic Act No. 3601, As Amended by 
Presidential Decree No. 552". "Section 3 of Republic Act No. 3601, as 
amended by Section 3, Presidential Decree No. 552, is hereby amended to 
read as follows;
x x x x
(b) Operating Capital. — All amounts collected by the National 
Irrigation Administration as irrigation fees, administration charges, 
drainage fees, equipment rentals, proceeds from the sale of 
unserviceable equipment and materials, sale of all reparation goods 
allocated to the defunct Irrigation Service Unit and the National 
Irrigation Administration, and all other income shall be added to its 
operating capital.


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The National Irrigation Administration is hereby authorized to 
impose as an administration and engineering overhead charge, 5% 
of the total cost of projects imdertaken by it, which shall likewise 
form part of its operating capital.
X X X X
Sec. 10. Separability Clause. - If any provision or part hereof, is held invalid 
or unconstitutional, the remainder of the law or the provision thereof shall 
remain valid and subsisting.
Sec. 11. Repealing Clause. - Any law, presidential decree, issuance, executive 
order, letter of instruction, administrative order, rtde or regulation contrary to 
or inconsistent with, the provisions of this Act or may be construed either 
expressly or impliedly, to grant the National Irrigation Administration the 
power to levy any kind of irrigation fee or any kind of monetary imposition is 
hereby repealed, modified, or amended accordingly.
Sec. 12. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette.
Approved.
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