Title
Creation of National Irrigation Administration
Law
Republic Act No. 3601
Decision Date
Jun 22, 1963
Republic Act No. 3601 establishes the National Irrigation Administration (NIA) as a body corporate responsible for investigating, improving, and administering national irrigation systems in the Philippines, with the power to collect fees, issue bonds, and obtain loans for its operations.
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Powers and Objectives

  • Investigate, design, improve, construct, and manage all national irrigation systems.
  • Study water resources for irrigation to promote a 10-20 year plan designated as the "Irrigation Age."
  • Collect user fees for financing operations and repaying construction costs within a minimum 25-year period.
  • Exercise any necessary or incidental actions to fulfill objectives.

Capitalization and Funding

  • Authorized working capital of 300 million pesos, fully subscribed by government through bonds.
  • Annual delivery of 30 million pesos by the Central Bank to NIA until full payment of capital stock.
  • Presidential authority to issue bonds domestically or abroad with terms set by Secretary of Finance in consultation with Monetary Board.
  • Bonds exempt from taxation and from attachment, execution, or seizure.
  • NIA to repay Central Bank in 50 equal annual installments starting six years after bond delivery.
  • Collected irrigation fees added to operating capital.
  • Authority to obtain loans under terms of U.S. Public Law for surplus commodity sales.
  • Establishment of a sinking fund managed by the Central Bank to redeem bonds at maturity.
  • Standing annual appropriation to support sinking fund and cover bond issuance expenses.

Governance: Board of Directors

  • A seven-member Board chaired by the Secretary of Public Works and Communications.
  • Included members: Secretary of Agriculture and Natural Resources, Chairman of National Power Corporation, Directors of Plant Industry and Agricultural Extension, plus two presidential appointees recommended by national organizations.
  • Term limits: six years for appointees, staggered for initial appointees.
  • Per diem compensation for actual attendance, capped monthly.

Board Powers and Duties

  • Prescribe and amend rules for NIA operations with Presidential approval.
  • Appointment and removal (with cause) of key officials including the Irrigation Administrator, subject to Presidential approval.
  • Approval of budgets subject to final Presidential action.

Board Member Restrictions

  • Prohibition from concurrently holding other positions within NIA unless authorized by the President.

Management: Irrigation Administrator

  • Chief executive responsible for managing NIA business under Board supervision.
  • Participates in Board meetings without voting rights.
  • Submits annual report to the President via the Board.
  • Appoints subordinate staff with Board approval and manages personnel discipline.

Employment Policies

  • All officers and employees subject to Civil Service Law and Rules except designated positions declared policy-determining, primarily confidential, or technical upon Board recommendation and Presidential declaration.

Audit and Financial Accountability

  • Auditor General appoints an Auditor for the NIA and necessary staff.
  • Salaries and personnel numbers subject to appropriations and resolution of disagreements by the President.
  • Annual audit report covering financial status, compliance, and any unauthorized transactions.
  • Report submitted to the Board, President, and Congress presiding officers within 60 days of fiscal year end.

Transitional and Miscellaneous Provisions

  • Abolition of the Irrigation Division of Bureau of Public Works; transfer of all related assets, personnel, and functions to NIA.
  • Applicability of Corporation Law provisions not inconsistent with this Act.
  • Presidential authority to issue implementing rules and regulations.
  • Repeal or modification of inconsistent laws, orders, and regulations.
  • Act effectiveness upon approval.

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