Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 552)
The primary objective of the NIA is to effectuate an economic means of achieving the optimal and diversified utilization and control of water by undertaking integrated irrigation projects, in line with the attainment of the 'Irrigation Age' as envisioned under Republic Act No. 3601.
The NIA was granted broader powers to undertake multiple-purpose projects, such as flood control, drainage, land reclamation, hydraulic power development, domestic water supply, road or highway construction, reforestation, and projects to maintain ecological balance, in coordination with concerned agencies.
The NIA is authorized to charge and collect fees or administration charges from beneficiaries of water, to cover costs of operation, maintenance, insurance, and to recover construction costs within a reasonable time consistent with government policy.
Unpaid irrigation fees or administration charges constitute preferred liens upon the land benefited and on the crops raised thereon, which have preference over all other liens except taxes. Such liens cannot be removed until payment or sale of the property by NIA to satisfy the charges.
The NIA can acquire real and personal properties, and appurtenant rights by any mode of acquisition. It is empowered to exercise eminent domain under the law, allowing expropriation for project use with just compensation to private owners.
For easements or right-of-way use, owners are entitled to up to 10% of the market value based on current tax declarations at entry or complaint filing. For purchase, payment of fair market value applies. Owners are compensated for damages to improvements based on valuations, with specific conditions for removability and harvested crops.
The capitalization of the NIA is two billion pesos, subscribed and fully paid by the government, delivering two hundred million pesos annually until fully paid. Operating capital includes all amounts collected from various fees, rentals, sales, and other income, plus annual appropriations for administration and project studies.
The NIA is authorized to contract loans, credits or indebtedness from foreign governments and international financial institutions up to 500 million US dollars equivalent, and the President is authorized to guarantee payments and obligations related to these loans on behalf of the Philippine government.
The Board comprises six members: Secretary of Public Works, Transportation and Communications as Chairman; NIA Administrator as Vice-Chairman; Director General of NEDA; Secretary of Agriculture; General Manager of National Power Corporation; and one appointed member from a national rice and corn organization. The Chairman presides over meetings and board functions.
Except for the Irrigation Administrator, the Chairman and other Board members are prohibited from simultaneously serving in any other capacity in the NIA unless authorized by the President.
The management is vested in the Irrigation Administrator, who is appointed by the President of the Philippines. The Administrator oversees staffing, salary determination (with Board approval), and personnel discipline within the NIA.
Judicial actions for collection of unpaid irrigation fees, drainage fees, and other charges by the NIA shall be governed by the Rules of Court provisions for similar actions, notwithstanding provisions of other laws to the contrary.