Amending Certain Sections Of Republic Act Numbered Thirty-Six Hundred And One, Entitled, "An Act Creating The National Irrigation Administration"

Case Overview and Summary

Presidential Decree No. 552 amends certain sections of Republic Act No. 3601, which created the National Irrigation Administration (NIA). The key provisions are as follows:

Powers and Objectives of NIA (Section 1):
- Investigate and study water resources for irrigation purposes.
- Plan, design, construct, improve, operate, maintain, and administer irrigation projects and systems. (Section 2(a))
- Charge and collect fees from beneficiaries to cover costs of operation, maintenance, insurance, and construction. Unpaid fees are liens on the land and crops. (Section 2(b))
- Construct multiple-purpose water resources projects for irrigation, power generation, flood control, drainage, land reclamation, water supply, roads, and reforestation, in coordination with concerned agencies. (Section 2(c))
- Investigate and construct drainage facilities and protective works, and collect drainage fees. (Section 2(d))
- Acquire real and personal properties, and exercise the right of eminent domain. Compensation for private property is limited to 10% of market value for easements, and fair market value for acquisition, based on tax declaration. (Section 2(e))
- Establish social and economic assistance for affected communities. (Section 2(f))

Capitalization and Funds (Section 2):
- NIA's capitalization is 2 billion pesos, to be paid by the government in annual installments of 200 million pesos.
- Operating capital includes fees, charges, rentals, sale proceeds, and other income.
- Annual appropriations for administration, expenses, and at least 6 million pesos for feasibility studies and project planning.

Foreign Loans (Section 3):
- NIA can contract foreign loans up to 500 million US dollars or equivalent, with the President's approval.
- Loans, payments, and imports are exempted from taxes, fees, and restrictions.

Board of Directors (Section 4):
- Composed of 6 members, including the Secretaries of Public Works, Agriculture, and NEDA Director General, NPC General Manager, NIA Administrator, and a member appointed by the President.
- Powers and duties include formulating policies, recommending appointments and removals, approving budget, and appointing a Board Secretary. (Section 5)

Administrator (Sections 6-8):
- Appointed by the President as the managing head of NIA. (Section 7)
- With Board approval, can determine staffing pattern, fix salaries and benefits, appoint and remove personnel, and define their powers and duties, notwithstanding existing rules. (Section 8(d))