Seventeenth Congress
First Regular Session

HOUSE BILL NO. _4170

Introduced by Honorable Peter “Sr. Pedro” M. Unabia

EXPLANATORY NOTE

This bill seeks to abolish the irrigation service fees (ISFs) imposed upon
farmers using irrigation systems constructed, operated and maintained by the
National Irrigation Administration (NIA), amending for the purpose Republic Act
(RA) No. 3601, as amended.

The NIA was established on June 1964 by virtue of RA 3601 entitled “An
Act Creating the National Irrigation Administration,” primarily to develop,
improve, operate, and maintain irrigation systems throughout the Philippines. In
1974, Presidential Decree (PD) No. 552 was issued to amend further RA 3601
allowing NIA to charge and collect fees or administration charges from the
beneficiaries of the irrigation systems constructed by or under the administration of
NIA. Such fees or administration charges were necessary for the operation and
maintenance costs of the irrigation system, and for recovery of the costs of
construction within a reasonable period of time to the extent consistent with the
government policy.

In 1998, since the Philippines was affected by the prolonged drought due to
the El Nifio phenomenon, Administrative Order No. 17 was issued by then
President Joseph Estrada adopting a socialized irrigation service fees to equitably
distribute the burden of payment among farmer beneficiaries in national irrigation
and communal irrigation systems.

For the year 2013, NIA was allocated a budget of P1.7 billion. For the year
2016, this was increased to P32.7 billion. This shows that the [SF has become


expendable through the years with bigger appropriations for the NIA. Thus, NIA
may no longer rely on the ISF because with a bigger budget, it can already sustain
the development and maintenance of irrigation systems that would increase
agricultural productivity and farmers’ income.

In view of the foregoing, abolition of the irrigation service fees will relieve

the farmers from these burdensome fees particularly those affected by the El Nifto
phenomenon. Hence, this bill.

PETER



Seventeenth Congress
First Regular Session

HOUSE BILL NO. 4170

Introduced by Honorable Peter “Sr. Pedro” M. Unabia

AN ACT
ABOLISHING THE SERVICE FEES FOR THE USE OF IRRIGATION
FACILITIES OF THE NATIONAL IRRIGATION ADMINISTRATION,
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 3601, AS
AMENDED, ENTITLED “AN ACT CREATING THE NATIONAL
IRRIGATION ADMINISTRATION”

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION. 1. Section 2 of Republic Act No. 3601, as amended, is
hereby further amended to read as follows:
“SEC.2. Powers and Objectives. ~ The NIA shall have the
following powers and objectives:
(a) Xxx
XXX XXX XXX
(c) [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. Judi
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


1 the Philippines for similar actions, the provisions of other laws to

2 the contrary notwithstanding;]

3 TO PROVIDE BENEFICIARIES WITH FREE USE OF

4 WATER FROM ALL IRRIGATION SYSTEMS CONSTRUCTED

5 BY OR UNDER THE ADMINISTRATION OF THE NATIONAL

6 IRRIGATION ADMINISTRATION. UNPAID IRRIGATION FEES

7 OR ADMINISTRATION CHARGES OF BENEFICIARIES SHALL,

8 BE CONDONED BY THE NATIONAL — IRRIGATION

9 ADMINISTRATION.

10 XXX.”

a. SEC. 2. Section 3 of Republic Act No. 3601, as amended, is hereby

12 further amended to read as follows:

13 “SEC.3. (a) — Capitalization. — xxx

uu (b) Operating Capital. — All amounts collected by the
15 National Irrigation Administration as [irrigation fees, administration
16 charges, drainage fees,] equipment rentals, proceeds from the sale of
v7 unserviceable equipment and materials, sale of all reparation goods
18 allocated to the defunct Irrigation Service Unit and the National
19 Irrigation Administration, and all other income shall be added to its

20 operating capital.


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

SEC. 3. All laws, decrees, orders, rules and regulations and other
issuances or parts thereof, which are inconsistent with the provisions of this Act
are hereby repealed, amended or modified accordingly.

SEC. 4. This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,