Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
‘Third Regular Session

6224

HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVES
FERNANDO L. HICAP, NERI J. COLMENARES, CARLOS ISAGANI T. ZARATE,
EMMI A. DE JESUS, ANTONIO L. TINIO AND TERRY L. RIDON

EXPLANATORY NOTE
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The agriculture sector is the backbone of the national economy as the
country remains agricultural, where farmers and farm workers, who comprise the
vast majority of the population, till the lands for their livelihood and for the benefit
of the entire nation.

Irrigation is one of the primary factors for the growth of agricultural
productivity. However, 1.34 million hectares of irrigable lands in the country are
still without irrigation.

Irrigation is needed to increase the productivity of farmers especially in the
production of major staples ~ rice and corn ~ and is therefore key in ensuring the
food security of the Filipino people. It likewise plays an important role in making
crop diversification viable as it generally enhances multi-cropping even during the
dry season.

Given the strategic importance of irrigation in pursuing sustained
agricultural growth and development, rice self-sufficiency, food security, and the
upliftment of the welfare of Filipino farmers, it is the obligation of the state to
provide free irrigation services.

In the Philippines, however, the government, adopting the World Bank’s
principle that water resource is a commodity, has been implementing various
finance mechanisms to collect irrigation service fees (ISFs) from farmers.

Farmer-beneficiaries of the National Irrigation System (NIS) program
administered by the National Irrigation Administration (NIA) and Irrigators
Associations (IA) under the Communal Irrigation Systems (CIS) are forced to pay
exorbitant ISFs. This has led to huge amount of back accounts or unpaid ISFs.
‘These back accounts, which are imposed with penalties and interests have further
burdened the already poor farmers with bigger debts.

‘The government has justified such unfair collection by propounding the
highly unsound argument that the funds collected are necessary to pay for the
salaries of the more than 5,000 NIA employees and workers.

Moreover, despite the fact that water, as a natural resource, belongs to the
people and should not be subjected to the control and utilization of local and


foreign big corporations for profit, the government promotes the privatization of
water services to the sole advantage of private businesses and to the detriment of
the people especially the farmers.

Meanwhile, under the Public-Private Partnership (PPP) program of the
government, $1.1-billion worth of dam and water projects are being auctioned off
for investment to local and foreign private companies. Big-ticket dam projects
funded through the national budget are being built primarily for power generation
purposes and only secondarily for irrigation services.

Since 2009, the government has entered into the Participatory Irrigation
Development Project (PIDP), a World Bank (WB)-assisted project that aims to
transform the NIA into a strategically-focused and financially viable irrigation
service through restructuring and reform programs in the irrigation sector that will
include purportedly the rehabilitation and modernization of the NIS and the
rationalization of the NIA.

It is the farmers however who are expected to shoulder the payment of such
loans through cost-recovery arrangements under the PDIP. This is on top of the
already high ISFs collected by the NIA from farmer-beneficiaries who avail of
irrigation services.

Farmers, irrigators associations and stakeholders in the agriculture sector
are united in demanding for free irrigation services, the abolition of irrigation
service fees collected by the National Irrigation Administration (NIA), and for a
genuinely just program that will accelerate irrigation development nationwide.

In view of the foregoing, the immediate passage of this bill is earnestly

sought.
9 REP. baits L.
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REP. i eee REP.CARLOS ISAGANI T. ZARATE
BAYAN IA Party-list BAYAN MUNA Party-list
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REP. EMMI A. BE JESUS P. L.
GABRIELA Women’s Party ACT Teachers Party

REP. TERRY L. RIDON
KABATAAN Party-list


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO._6224

INTRODUCED BY REPRESENTATIVES
FERNANDO L. HICAP, NERI J. COLMENARES, CARLOS ISAGANI T. ZARATE,
EMMI A. DE JESUS, ANTONIO L. TINIO AND TERRY L. RIDON

AN ACT
ABOLISHING IRRIGATION SERVICE FEES AND SUCH OTHER SIMILAR OR
RELATED FEES FROM BENEFICIARIES OF IRRIGATION SYSTEMS FUNDED
AND CONSTRUCTED BY, OR UNDER THE ADMINISTRATION OF THE
NATIONAL IRRIGATION ADMINISTRATION, 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 the House of Representatives of the Philippines in
Congress assembled:

Section 1. Short Title. - “This Act shall be known as the “Free Irrigation Services
Act of 2015.”

Section. 2. Declaration of Policy. ~ It is hereby declared the policy and obligation
of the State to adhere to the principle of integrated and holistic program of support
services that will alleviate the situation of farmers and nurture them to unleash
their full capabilities 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 self-sufficiency in food, 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.

Section. 3. Stoppage of the Collection of Fees. - The collection of irrigation
service fees (ISFs) and such other similar or related fees from beneficiaries of
irrigation systems funded and constructed by, or under the administration of the
National Administration (NIA), including the collection of back accounts and the
corresponding penalties thereof, shall all be stopped upon the passage of this Act.

Section. 4. Construction, Repair and Maintenance of National Irrigation
‘Systems. - For the purpose of ensuring the necessary construction, repair and


maintenance of irrigation systems administered by the NIA, the required amounts
shall be inched in the annual General Appropriations Act (GAA).

Section. 5. 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 likewise be included
in the annual GAA.

Section 6. Repeal of Section 2, Paragraph (c) of Republic Act No. 3601
entitled "An Act Creating the National Irrigation Administration:

"Section 2. Powers and objectives. The NIA shall have the following powers
and objectives:

REXX

(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:

XXX

SECTION 7. Repeal of Section 1, Paragraph (b) of Presidential Decree (PD) No.
552 entitled "Amending Certain Sections of Republic Act Numbered Thirty-
Six Hundred and One, entitled, "An Act Creating the National Irrigation
Administration”:

Section 1. Section 2, Republic Act Numbered Thirty-Six Hundred and one, is
hereby amended to read as follows:

"Section 2. Powers and Objectives. -- The NIA shall have the following powers
and objectives:

KXXX

(b) To charge and collect from the beneficiaries of the water from all
irrigation systems constructed by or under 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 liens shall not be removed
until 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.

KEXX

Section 8. 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:

XXXX

(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.

‘The National Irrigation Administration is hereby authorized to impose
as an administration and engineering overhead charge, 5% of the
total cost of projects undertaken by it, which shall likewise form part
of its operating capital.

XxXXX

Section 9. 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.

Section 10. Repealing Clause. - Any law, presidential decree, issuance, executive
order, letter of instruction, administrative order, rule 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.

Section 11. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette.

Approved.