Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No, 4804

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay ~ Villar

EXPLANATORY NOTE

Irrigation is a necessity for many Filipinos dependent on farming, especially on rice producing
areas. It improves both yield and reliability of agricultural production and attain food
security. “Water is very important in increasing yield. Empirical and experimental data have amply
demonstrated that yields from irrigated farms are always higher compared to non-irrigated farms.
In the Philippines, yield from irrigated rice has been fluctuating, but is generally on the increasing
trend from 3.29 tons per ha (tha) in 1990 to 3.99 vha in 2010 and 4.22 wha in 2014 (source:
Philippine Statistics Authority-Country Stat). Yields from non-irrigated area, on the other hand,
has been consistently lower than these values. This underscores the need for a continuing subsidy
for irrigation for rice farms.”!

At present, RA 3601, as amended by PD 552 and PD 1702, mandates the NIA 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:
1a) cover the cost of operation, maintenance, and insurance;
b) recover the costs of construction within a reasonable period of time to the extent
consistent with government policy;
©) recover funds or portions thereof expended for the construction and/or rehabilitation of
communal irrigation systems (CIS) which shall accrue to a special fund for irrigation
development.

However, most of our farmers fail to pay the ISF on a regular basis that eventually accumulate as
debt. While irrigation plays a vital role in enhancing productivity, through the years however, the
ISF has become an additional production cost that burdens our poor farmers. Additional
production cost translates to higher price of produce.

Free irrigation services will improve agricultural productivity and increase cropping intensities
and also reduced production costs that will effectively lower the selling prices of rice while still
compensating farmers appropriately for their efforts. Providing ‘free irrigation water’ to the
Filipino farmers will increase production and address the challenges on food security and more

* http://ap.fitcagnet.org/ap_db.php?id=S8S&print=1

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importantly recognize and reward the sacrifices of our Filipino farmers who produce food for our
country.

This legislative measure - filed as a counterpart of Senate Bill No. 140 with the support of its
author, Senator Cynthia Villar - aims to repeal or modify provisions of existing laws prescribing
the power and authority of the NIA to collect Irrigation Service Fees (ISF) or other forms of
charges for the use of irrigation systems.

Aeertin A. Keller
EMMELINE Y. AGLIPAY - VILLAR
Representative, DIWA Party-list

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No, 4804

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay ~ Villar

AN ACT
TO RESTRUCTURE MANDATE AND REFOCUS THE ROLE OF THE NATIONAL
IRRIGATION ADMINISTRATION TOWARDS THE DEVELOPMENT OF MORE
NEW IRRIGATION SYSTEMS, REMOVE ITS ROLE IN MAINTENANCE AND
COLLECTION OF IRRIGATION AND OTHER SERVICE FEES, AND RENAME IT AS
THE NATIONAL IRRIGATION DEVELOPMENT ADMINISTRATION, AND FOR
OTHER PURPOSES

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

SECTION 1. Short Title. This Act shall be known as the "FREE IRRIGATION REFORM AND
RESTRUCTURING ACT OF 2016."

SECTION 2. Declaration of Policy. Itis the policy of the State to refocus the direction, role and
functions of the National Irrigation Administration (NIA) towards development of more irrigation
systems by strengthening its mandate in studying, planning, designing and constructing irrigation
projects, water catchments, and appurtenant structures to support farms and agricultural
production; and by removing from the NIA the functions of maintenance of irrigation projects and
the business of collection of irrigation services and other fees. The State seeks to reduce the
dependency of farmers’ and producers’ groups on government services where they actually can
support themselves. Concomitantly, the State shall transfer ownership and management of all
completed irrigation facilities to the direct beneficiaries of such facilities, including irrigators'
associations, cooperatives, and farmers’ corporations, who shall organize said projects into farmer
owned irrigation service enterprises with professional help in maintaining the facilities and
financial sustainability of said enterprises.

SECTION 3. Renaming and Re-Classifving the Agency. The National Irrigation Administration,
which was created under Republic Act No. 3601, as amended by Presidential Decrees No. $52 and
1702, is hereby renamed as the National Irrigation Development Administration (NIDA), and is
hereby converted from a government corporation into a line agency under the Department of
Agriculture.

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SECTION 4. Restructuring/Amending the Irrigation Mandate. The mandates, powers and
authorities provided to the MA under these laws shall be assumed by the MBA, except for the
following provisions which are hereby deleted and repealed accordingly:

(a) Section 2 (a) of Republic Act 3601 The phrase “and administer all international”;
(b) The entire Sections 2. (c) and (d) of RA 3601;

(c) The entire Section 2. (b) of P. D. 552;

(d) The entire Section 2. (f) of PD. 552;

(e) The entire Article I (Capitalization) of RA. 3601;

(f) The entire Section 2 of PD. 552 (Amending Article II of RA. 3601);

(g) The entire Section 3 of RA. 3601 (Authority to incur foreign loans).

SECTION 4. Irrigation Planning Board. Section 4 of RA. 3601, as amended by PD. 552, is hereby
repealed and the MA Board of Directors is hereby replaced by the irrigation Planning and Advisory
Board (IPAB), which shall have the following power and functions:

1. To formulate and adopt policies for the management and operations of the NIDA;

2. To investigate, study and develop all available water resources in the country, primarily for
irrigation purposes;

3. To plan, design, construct and/or improve all types of irrigation projects and appurtenant
structures;
4. To operate, maintain and administer all national irrigation systems (NIS);

5. To supervise the operation, maintenance and repair, or otherwise, administer temporarily all
‘communal and pump irrigation systems constructed, improved and/or repaired wholly or partially
with government funds;

6. To ensure the preparation of irrigation development of district, regional and national irrigation
plans in relation to the Strategic Agriculture and Fisheries Development Zones (SAFDZ) as
prescribed by RA. 8435;

7. To oversee efficiency, integrity and transparency of the affairs, and operations of the Agency in
the implementation of its irrigation plans and development programs;

8. To approve for the NIDA‘s plans, programs and budgets for inclusion in the Department of
Agriculture’s plans and budgets for the ensuing year;

9. To formulate the relevant strategies, plans, and programs as well as organizational development
that will ensure the effectiveness of the missions of agency;

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10.To regularly monitor and evaluate NIDA's reports on the state of irrigation in the various
regions of the country for all the major crop commodities in each region;

11. To oversee, in cooperation with the Commission on Audit, the inventory of all NIA irrigation
assets;

12. To ensure the effective and efficient transfer of the irrigation projects to the beneficiaries, and
ensuring that such entities have professional management support;

13.To approve any organizational re-engineering plan that may be needed for transformation of
NIA into the NIDA which may entail, among other measures: (1) reduction of maintenance and
collection personnel; (2) expansion of research and development, and construction management
units; and (3) provision of early retirement benefits at a factor of 2 months basic for every year of
service; and

14.To ensure the hiring of technically competent and highly capable, qualified personnel in the
Agency.

SECTION 5. Removal of Irrigation Fees - The service fees and other charges being collected by
the NIA from the irrigation beneficiaries are hereby discontinued.

SECTION 6. Turn Over of Irrigation Facilities - Within one year from the effectivity of this Act,
the National Irrigation Development Administration shall complete its turn over to farmers groups
all completed and inventoried irrigation projects, including those currently under rehabilitation,
and including all functional equipment and facilities, appurtenant thereto. Henceforth, the
beneficiaries of such irrigation facilities and projects shall, with professional help, manage the
maintenance of the irrigation facilities.

SECTION 7. Organization of the Beneficiaries as Partners - Small communal irrigation systems
(CIS) may be directly taken over by the farmers, who are able to present management and
maintenance plans for the sustainability of the irrigation projects.

To be eligible for the Section 5 and 6 above, all stakeholder beneficiaries shall be required to
complete a requisite set of trainings in farm enterprise management, and irrigation management
concepts prior to the transfer of the particular irrigation facility to their particular group.

SECTION 8. Appropriations - The funding for the operation and maintenance of the irrigation
facilities nationwide shall be sourced out from the General Appropriations Act.

SECTION 9. Repealing Clause. All other laws, executive orders, rules and regulations, or parts
thereof, inconsistent herewith are hereby repealed or modified accordingly.

SECTION 10. Implementing Rules and Regulations. Within three months from the effectivity of

this Act, the Secretary of Agriculture shall form an ad hoc Task Force to be composed of two
representatives each from the NIDA, from the large scale irrigators association, from small

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irrigators associations, and one representative each from the professional associations of civil
engineers and an accountants’ or financial management group, to formulate the Implementing
Rules and Regulations within the ensuing period of three months. Two representatives of the
Congressional Commission on Agriculture and Fisheries Modernization shall join the meetings of
the ad hoc Task Force as observers.

SECTION 11. Separability Clause - The provision of this Act are hereby declared to be separable.
If any provision of this Act shall be held unconstitutional, the remainder of the Act

not otherwise affected shall remain in full force and effect.
SECTION 12. Effectivity. This Act shall take effect upon its publication in the Official Gazette.

Approved,

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