Republic of the Philippines.
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS.

First Regular Session

House BillNo,_ 3.787

Introduced by Hon, Delphine Gan Lee

EXPLANATORY NOTE

There is a need to rationalize irrigation fees management to increase agricultural
productivity as well as farmers’ incomes. The National Irrigation Authority (NIA) used to
solely operate and maintain national irrigation systems (NIS). These are now operated and
maintained jointly with irrigators associations, Operation and maintenance (OM) activities
are mainly composed of operation of storage and diversion dams; running of pumps;
operation of gates, turnouts and drainage ditches; preparation and implementation of cropping
and irrigation schedules; maintenance of the physical facilities including service and access

roads, and repairs on minor damages caused by floods and typhoons.

Figures from the NIA show that as of March 2010, there are 209 NIS nationwide with
a total area of 748,367 hectares. Thirty percent (80%) of the areas are served by reservoir-
backed systems, 65 percent by run-of-the river diversion systems, and five percent by pump
systems. The dominant crop in these areas is rice comprising 95 percent. The remaining 5
percent are corn, sugarcane, bananas and some vegetables. There are about $85,515 farmers
benefiting from NIS.

NIA has been authorized to impose charges to generate revenues sufficient to cover

only O&M costs of such facilities and to recover within a period not longer than 50 years, the

funds initially invested in such facilities; provided that such charges shall not impair the
user's incentive to avail of the benefits from irrigation and provided further, that such charges

are within the beneficiaries’ capacity to pay.


The laws on irrigation fees are scattered on different pieces of legislation such as
Republic Act No. 3601, Presidential Decree No. 552, and Presidential Decree No, 1702. This
bill aims to rationalize and include in just one law the rules governing the irrigation fees that

the National Irrigation Authority may charge.



Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City
SIXTEENTH CONGRESS

First Regular Session

House BillNo,__ 9787

Introduced by Hon, Delphine Gan Lee

AN ACT
TO RATIONALIZE THE IRRIGATION FEES
LEVIED ON FARMERS,

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 “Irrigation Fee

Rationalization Act of 2013.”

SECTION 2. Irrigation Service Fee. - The National Irrigation Authority is authorized
to charge an Irrigation Service Fee from the beneficiaries in national irrigation systems as
payment for the services rendered in the delivery of water. This includes such fees or
administrative charges as may be necessary to cover the costs of operation, maintenance, and
to recover the cost of construction within a reasonable period of time to the extent consistent

with government policy.

SECTION 3. Use of the Proceeds of the Fee. ~ The fees collected by the National
Irrigation Administration as irrigation fees, administration charges, drainage fees, equipment
rentals, proceeds ftom the sale of unserviceable equipment and materials, and all other

income shall be added to its operating capital.


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SECTION 4. Governing Policies. — The collection and use of irrigation service fees

(ISF) shall be governed by the following policies:

‘A. ISF rates are denominated in-kind but beneficiaries have the option to pay in-kind or
cash. Payments in cash are based on the prevailing government support price for palay
at the time of payment.

B, ISF payments for other crops and annual crops are the cash equivalent of the rates for
rice crop at the prevailing government support price for palay at the time of payment.

C. Payments in cash shall be encouraged. Prompt cash payment in full of ISF current
account is entitled to a twenty percent (20%) discount.

D. ISF payments in kind must have net weight of fifty (50) kilograms per cavan at
fourteen (14) percent moisture content.

E. Unpaid ISF accounts shall be subject to a penalty of one percent (1%) for every sixty
(60) days. Back accounts paid in cash shall be based on the prevailing government
‘support price for palay at the time of payment.

F. 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. Such preferred liens shall not be
removed until all fees or administration charges are paid or the property is levied upon
and sold by NIA for the satisfaction thereof. Judicial actions for the collection of
unpaid irrigation fees or charges, drainage fees or other charges which the NIA is
authorized to impose and collect, shall henceforth be governed by the provisions of
the Rules of Court of the Philippines;

G. Farms with a rice yield of fifty (SO) cavans per hectare or below are exempted from
the payment of the ISF.

SECTION 5. Program Report.—The NIA shall annually submit to the agricultural


committee of both houses of congress a report assessing the irrigation program of the

country.

SECTION 6. Separability Clause. ~ If any provision or part hereof, is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain

valid and subsisting.

SECTION 7. Repealing Clause. - This Act hereby repeals Republic Act 3601,
Section 2, paragraph (c); Presidential Decree (PD) 552, Section 1, paragraph (b); and PD
1702, Section 1 paragraph (b). Any law, presidential decree or issuance, executive order.
letter of instruction, administrative order, rule or regulation contrary to or is inconsistent with

the provision of this Act is hereby repealed, modified, or amended accordingly.

SECTION 8. Effectivity Clause, ~ This Act shall take effect fifteen (15) days after its

publication in at least two (2) newspapers of general circulation.

Approved,