AMENDING SECTION 3 OF REPUBLIC ACT NO. 3601, AS AMENDED BY PRESIDENTIAL DECREE NO. 552

WHEREAS, under Republic Act No. 3601 as amended by
Presidential Decree No. 552, the National Irrigation Administration, is charged
with the responsibility of constructing, improving, rehabilitating and
administering all national irrigation systems in the Philippines, including, all
communal and pump irrigation projects;

WHEREAS, the implementation of the irrigation integrated
program of the government and the attainment of the “Irrigation Age” as
envisioned under Republic Act No. 3601, is the primary responsibility and goal
of the National Irrigation Administration; and

WHEREAS, the increased pace of irrigation development
together with the increased cost of irrigation systems require an increase in
capitalization of the National Irrigation Administration and the strengthening
of its powers and resources to assure long tern capacity for meeting its
responsibilities and attaining its goals;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
amend certain sections or provisions of Republic Act Number Thirty Six Hundred
and 0ne, as amended by Presidential Decree No. 552, to wit:

SECTION 1. — Section 3 of Republic Act No, 3601, as amended
by Section 3, Presidential Decree No, 552, is hereby further amended to read as
follows:

“SECTION 3 (a) — Capitalization. The authorized
capital stock of the National Irrigation Administration shall be ten billion
pesos, which shall be subscribed and paid entirely by the Government of the
Republic of the Philippines. The amount is hereby appropriated for the purpose
out of any funds in the Treasury not otherwise appropriated: Provided,
That only such amounts as are actually necessary for the implementation of
projects of the Administration shall be released as payments on capital
subscriptions, subject to approval of the President as provided by
pertinent budget laws.”

(b) Operaing Capital. — All amounts collected by the National
Irrifation Administration as irrigation fees, administration charges, drainage
fees, equipmnet rentals, proceeds from the sale of unserviceable equipment and
materials, sale of all reparation goods allocated to the defunct Irrigation
Service Unit and the National Irrigation Administratiion, and all other income
shall be added to its operating capital.

The National Irrigation Administration is hereby authorized to impose as an
administration anad engineering overhead charge, 5% of the total cost of
projects undertaken by it, which shall likewise form part of its operating
capital.”

SEC. 2. Separability Clause. — The provisions of
this Decree are hereby declared separable and if any clause, sentence, provision
or section of this Decree or its application thereby to any person or
circumstance should, for any reason be held invalid or unconstitutional, such
invalidity or unconstitutionality shall not effect the other provisions or
application of this Decree which can be given force and effect.

SEC. 3. Repealing Clause. — All laws, decrees,
charters, executive orders, administrative orders, proclamations, rules and
regulations, or parts thereof insofar as they are in consistent with the
provisions of this Decree are hereby repealed, amended or modified
accordingly.

SEC. 4. Effectivity. — This Decree shall take
effect immediately.

Done in the City of Manila, this 26th day of July, in the year of Our Lord,
nineteen hundred and eighty.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JOAQUIN T. VENUS, JR.
		Presidential Assistant