SEVENTEENTH CONGRESS OF THE 
] 
REPUBLIC OF THE PHILIPPINES 
]
F irst R eg u lar S ession 
]
SENATE
S. No. 1412
S e n a te
of fOr S - p fir n u p
*1 7  
MAR 2 7  
P5’46
received 87;
In tro d u ced  by SENATOR WIN GATCHALIAN
AN ACT
ABOLISHING THE IMPOSITION OF IRRIGATION SERVICE FEES (ISF) 
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, REPEALING FOR THE PURPOSE CERTAIN 
SECTIONS OF REPUBLIC ACT NO. 3601, PRESIDENTIAL DECREE NO. 
552 AND PRESIDENTIAL DECREE NO. 1702
EXPLANATORY NOTE
The National Irrigation Adm inistration (NIA) is a government-owned 
and controlled corporation established under Republic Act No. 3601 to 
develop, improve, operate and m aintain irrigation system s throughout the 
Philippines. P ursuant to the aforem entioned law, NIA is authorized to collect 
irrigation service fees (ISF) from the farm er beneficiaries to cover the cost of 
operation, m aintenance, and to recover the cost of construction within a 
reasonable period of time to the extent consistent with governm ent policies.1
Through this system, the farm er beneficiaries are somehow forced to 
pay exorbitant fees to recoup governm ent expense on irrigation services. As 
a result of which, m any of our poor farm ers could not keep up with
1 Section 2, Paragraph C, R.A. No. 3601.


paym ents thereby resulting in huge am ount of debts and an accum ulation 
of back accounts. In addition to this burden, the actual collection of ISF has 
historically been way below the target collection. Their refusal to pay is due 
to the fact th at they were not part of its design and im plem entation, as well 
as the recording of high w ater losses caused by poor distribution networks 
at the farm level.2
The present adm inistration has provided a solution by the grant of 
Irrigation Fees Subsidy am ounting to Two Billion Pesos (Php2,000,000.00) 
to cover the ISF collected by NIA from farm ers’ association in the 2017 
General Appropriations Act (GAA). This intervention in the 2017 GAA is now 
paving the way for free irrigation services to Filipino farm ers. However, 
despite the subsidy, the debt rem ains outstanding and the farm ers are 
obliged to rem it paym ents for their ISF share am ounting to Thirteen Billion 
Pesos (Php 13,000,000,000).
In view of the fact th at irrigation is a key factor in increasing 
agricultural productivity, rice sufficiency and food security, it should be the 
obligation of the State to provide free irrigation services. Through this 
m easure, we can fully support our farm ers and farm er cooperatives by 
m aking irrigation services free through the repeal of all laws allowing the 
collection of ISF and the condonation of all back accounts or outstanding 
ISF obligations of our farm er beneficiaries.
Thus, the passage of this bill is earnestly sought.
2
http://ap.fftc.agnet.org/ap db.php?id=585 (Analysis of the Effects of Various Irrigation 
Service Fees for National Irrigation Systems in the Philippines).


SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
F irst R e g u la r S ession
1
SENATE
S. No. 1412
senate
of U)f frrtirtarp
*17 MftR 27 P5 ^6
RECEIVED BV:
tji
In tro d u ced  by SENATOR WIN GATCHALIAN * 1 2 3 4 5 6 7 8 9
AN ACT
ABOLISHING THE IMPOSITION OF IRRIGATION SERVICE FEES (ISF) 
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 assem bled:
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SEC. 1. S h o rt Title. -  This Act shall be known as the “Free Irrigation
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Services Act.”
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SEC. 2. D eclaratio n  o f Policy. -  It is the policy of the State to give the
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highest priority to the development of agriculture such th at equitable
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distribution 
of benefits 
and 
opportunities 
is 
realized 
through 
the
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empowerm ent of sm all farmers.
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In pursuance of this policy, the State shall recognize the right of sm all
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farm ers, farm workers and farm er cooperatives through appropriate policies,
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research, training and adequate financial support to accelerate agricultural


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productivity and to promote self-sufficiency and full development of
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agricultural potentials.1
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SEC. 3. T erm in atio n  o f C ollection o f th e  Irrig a tio n  S endee Fees 
(ISF) -  The collection of the Irrigation Service Fee is hereby discontinued, and 
all other sim ilar charge relating to the service of irrigation, w hether funded, 
constructed or adm inistered in whole or partly by the NIA shall be prohibited.
SEC. 4. C ondonation o f D ebts -  The collection of all back accounts 
and the corresponding penalties thereof is hereby term inated and all existing 
debts for irrigation service funded by the NIA is hereby condoned.
SEC. 5. G overnm ent S ubsidy f o r  th e  M anagem ent o f Irrig a tio n  
S ystem s -  The State shall provide the necessary subsidies to farm ers and 
irrigators associations and cooperatives to ensure the effective and 
grassroots-based m anagem ent of irrigation system s, the allocation for which 
shall be a continuing fund to be included in the annual budget of the 
D epartm ent of Agriculture.
SEC. 6. R epeal o f S ection 2  P a ra g ra p h  (c) o f R epublic A ct No. 3601 
e n title d  uAn A ct C reatin g  th e  N atio n al Irrig a tio n  A d m in istra tio n ”:
“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 reim burse within a certain period not less than twenty- 
five years the cost of construction thereof;
X X X X 1
1 Excerpts from Sec. 2 of the Magna Carta of Small Farmers.


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SEC. 7. R ep eal o f S ection 1, P a ra g ra p h  (b) o f P re sid e n tia l D ecree 
(PD) No. 5 5 2  e n title d  t(A m ending C ertain  S ections o f R epublic A ct No. 
36 0 1 , 
en titled , 
((An 
A ct 
C reating 
th e  
N atio n al 
Irrig a tio n  
Adm inistration.**- Section 1. Section 2 of Republic Act No. 3601 is hereby 
am ended to read as follows:
X X X X
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(t>) To charge and collect from the beneficiaries of the w ater from all
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irrigation system s constructed by or under its adm inistration, such fees
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or adm inistration charges as may be necessary to cover the cost of
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operation, m aintenance and insurance, and to recover the cost of
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construction with in a reasonable period of time to the extent consistent
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with governm ent policy; to recover funds or portions thereof expended
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for the construction a n d /o r rehabilitation of com m unal irrigation
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system s which funds shall accrue to a special fund for irrigation
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development under section 2 hereof;
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Unpaid irrigation fees or adm inistration charges shall be preferred liens,
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first, upon the land benefited, and then on the crops raised thereon,
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which liens shall have preference over all other liens except for taxes on
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the land, and such preferred liens shall not be removed until all fees or
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adm inistration charges are paid or the property is levied upon and sold
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by the National Irrigation Adm inistration for the satisfaction thereof
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Judicial actions for the collection of unpaid irrigation fees or charges,
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drainage 
fees 
or other charges which 
the 
National 
Irrigation
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Adm inistration is authorized to impose and collect, shall henceforth be
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governed by the provisions of the Rules of Court of the Philippines for
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sim ilar actions, 
the provisions 
of other 
laws 
to the 
contrary
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notw ithstanding.
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X X X X
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SEC. 8. R ep eal o f S ection 1, P a ra g ra p h  (b) o f P re sid e n tia l Decree
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No. 1 7 0 2  en titled , ‘‘A m ending S ection 3 o f R epublic A ct No. 3601, As
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A m ended by P re sid e n tia l D ecree No. 552.** Section 3 of Republic Act No.
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3601, as am ended by Section 3, Presidential Decree No. 552 is hereby
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am ended to read as follows:
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(b) Operating Capital. — All am ounts collected by the National Irrigation 
Adm inistration as irrigation fees, adm inistration charges, drainage fees, 
equipm ent rentals, proceeds from the sale of unserviceable equipm ent 
and m aterials, sale of all reparation goods allocated to the defunct 
Irrigation Service Unit and the National Irrigation Adm inistration, and 
all other income shall be added to its operating capital.
The National Irrigation Adm inistration is hereby authorized to impose 
as an adm inistration and engineering overhead charge, 5% of the total 
cost of projects undertaken by it, which shall likewise form part of its 
operating capital.”
X X X X
SEC. 9. S e p a ra b ility  C lause. - Should any part of this Act be declaired 
unconstitutional, the rest of the provisions of this Act shall continue to be in 
effect and subsisting.
SEC. 10. R ep ealin g  C lause. - The provisions of other laws, decrees, 
executive orders, rules and regulations inconsistent with this Act are hereby 
repealed, am ended, or modified accordingly.
SEC. 11. E ffectivity. - This Act shall take effect fifteen (15) days after 
its publication in the Official Gazette a n d /o r in at least two (2) national 
new spapers in general circulation.
Approved,