Title
Amendment to R.A. 3601: National Irrigation Admin
Law
Presidential Decree No. 552
Decision Date
Sep 11, 1974
Presidential Decree No. 552 amends Republic Act No. 3601, granting the National Irrigation Administration broader powers and authority, including the ability to undertake multiple-purpose projects, acquire properties, incur foreign loans, and exercise the right of eminent domain. The decree also empowers the Board of Directors to formulate policies, approve budgets, and appoint personnel, while repealing or modifying inconsistent laws.

Powers and Functions of NIA

  • Conduct investigation and study of water resources for irrigation.
  • Plan, design, construct, improve, operate, maintain, and administer all national irrigation systems.
  • Temporary administration of communal and pump irrigation systems partly or fully government-funded.
  • Authority to delegate management of irrigation systems to cooperatives/associations under terms set by NIA Board.
  • Imposition and collection of fees from beneficiaries covering costs of operation, maintenance, insurance, and construction recovery.
  • Unpaid irrigation fees have preferred liens on benefited land and crops, superseding all liens except taxes.
  • Construction of multipurpose water projects with primary focus on irrigation, coordinated with relevant agencies.
  • Authority to plan and construct drainage infrastructure to enhance productivity of submerged areas; collection of drainage fees.
  • Power to acquire real and personal properties and exercise eminent domain for projects, including right of way over public lands and government properties.
  • Compensation provisions for private property use or acquisition, including rules for damages, improvements, crops, and timelines for claims.
  • Establishment of social and economic assistance services to communities affected by NIA projects.

Capitalization and Operating Funds

  • Authorized capitalization set at PHP 2 billion, to be fully subscribed and paid by the Philippine government, delivered in annual installments of PHP 200 million.
  • Operating capital includes all collections from irrigation fees, rentals, equipment sales, and other income.
  • Annual budget provisions for general administration, operation, maintenance, and project feasibility studies.

Authority to Incur Foreign Loans

  • Authorized to secure loans, credits, or indebtedness up to USD 500 million or equivalent from foreign governments or international financial institutions.
  • Power for the President or authorized representatives to negotiate and contract loans in NIA's name.
  • Presidential authority to provide absolute and unconditional guarantees on loans.
  • Exemption of loan-related payments and importations from all taxes, fees, and restrictions in the Philippines.

Composition and Functions of the Board of Directors

  • Board composed of six members: Secretary of Public Works (Chairman), NIA Administrator (Vice-Chairman), Director General of NEDA, Secretary of Agriculture, General Manager of NPC, and one appointee from national rice and corn organizations.
  • Provisions for substitute attendance with voting rights in cases of incapacity.
  • Per diem compensation for Board members attending meetings with limits.
  • Board powers include policy formulation, rule-making, appointment recommendations, budget approval, and appointment of Board Secretary.

Prohibition on Concurrent Capacities for Board Members

  • Board members, except the Irrigation Administrator, may not hold any other position in NIA unless authorized by the President.

Management Structure

  • Management vested in the Irrigation Administrator appointed by the President.
  • Administrator empowered, with Board approval, to determine staffing, fix salaries, define duties, and discipline personnel.

Separability Clause

  • Any invalid or unconstitutional provision or application does not affect the remaining parts of the Decree.

Repealing Clause

  • All inconsistent laws, decrees, executive orders, rules, and regulations are repealed or modified accordingly.

Effectivity

  • The Decree takes effect immediately upon approval.

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