AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NUMBERED THIRTY-SIX HUNDRED AND ONE, ENTITLED, “AN ACT CREATING THE NATIONAL IRRIGATION ADMINISTRATION.”

WHEREAS, the enunciation policy is for a comprehensive
development, utilization and conservation of water resources of the
Philippines, and in pursuit of this policy, one of the primary
objectives of the National Irrigation Administration is to effectuate an
economic means of achieving the optimal and diversified utilization and
control of water by undertaking integrated irrigation projects.

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

WHEREAS, an effective means of implementing multiple-purpose
projects in line with program- oriented and comprehensive water
resources development necessitates broader powers and authority of the
NIA to undertake concomitant 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 the agencies concerned;

WHEREAS, the construction of multiple-purpose water
resources projects involves substantial investment of government funds
to increase agricultural production for the financial upliftment of the
people for them to be able to assume and comply with their obligations
and responsibilities to the government;

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 Numbered
Thirty-six Hundred and One, “An Act Creating the National Irrigation
Administration”, to wit:

SECTION 1. Section 2, Republic Act Numbered Thirty-six
Hundred and One, is hereby amended to read as follows:

“SEC. 2. Powers and Objectives. — The NIA shall
have the following powers and objectives:

1. To investigate and study all available and possible water
   resources in the Philippines, primarily for irrigation purposes;
   to plan, design, construct and/or improve all types of
   irrigation projects and appurtenant structures; to operate,
   maintain, and administer all national irrigation system; the
   authority to supervise the operation, maintenance and repair, or
   otherwise, administer temporarily, all communal and pump
   irrigation systems constructed, improved and/or repaired wholly or
   partially with government funds; and to delegate the partial
   or full management of national irrigation systems to duly organized
   cooperatives or associations, under such terms and conditions which the
   NIA Board of Directors may impose;
2. To charge and collect from the beneficiaries of the water
   from all irrigation systems constructed by or under its administration,
   such fees or administration charges as may be necessary to cover
   the cost or operation, maintenance and insurance, and to recover the
   cost of construction with in a reasonable period of time to the
   extent consistent with government policy; to recover funds or
   portions thereof expended for the construction and/or
   rehabilitation of communal irrigation systems which funds
   shall accrue to a special fund for irrigation development under section 2
   hereof;

Unpaid irrigation fees or administration charges shall be
preferred liens, first, upon the land benefited, and then on the crops
raised thereon, which liens shall have preference over all other liens
except for taxes on the land, and such preferred liens shall not be
removed until all fees or administration charges are paid or the
property is levied upon and sold by the National Irrigation
Administration for the satisfaction thereof. Judicial actions for the
collection of unpaid irrigation fees or charges, drainage fees or other
charges which the National Irrigation Administration is authorized to
impose and collect, shall henceforth be governed by the provisions of
the Rules of Court of the Philippines for similar actions, the
provisions of other laws to the contrary notwithstanding;

3. To construct multiple-purpose water resources projects
   designed primarily for irrigation, and secondarily for hydraulic
   power development and/or other uses such as flood control,
   drainage, land reclamation, domestic water supply, roads and
   highway construction and reforestation, among others: Provided,
   That the plans, designs and the construction thereof, shall be
   undertaken in coordination with the agencies concerned;
4. To investigate, in coordination with the Bureau of
   Public Works, areas which are unproductive or less productive due to
   permanent or occasional submergence, and to plan, design and construct
   drainage facilities and protective works for agricultural purposes to
   increase or maximize their productive yield, to collect drainage fees
   from landowners of areas benefited by the drainage facilities and
   protective works to recover the cost of operation and maintenance as
   well as a reasonable portion of the cost of the construction
   thereof, consistent with government policy;
5. To acquire, by any mode of acquisition, real and personal
   properties, and all appurtenant rights, easements,
   concessions and privileges, whether the same are already devoted to
   private or public use in connection with the development of projects by
   the NIA;

The National Irrigation Administration is empowered to exercise
the right to eminent domain in the manner provided by law for the
institution of expropriation proceedings.

In the prosecution of its projects, the National Irrigation
Administration is hereby given the right of way to construct, and
maintain such works and hydraulic structures over and throughout lands
of the public domain, and in those owned by any branch of the
government, political subdivision, and instrumentality. In case of
private property, compensation for the use and occupancy thereof shall
be paid and determined as follows:

1. In case of the establishment of easement of aqueduct,
   abutment of dams, right of way for access roads and other similar works
   pertaining to irrigation projects and for facilities and works
   pertaining to multiple-purpose projects, the owners of the property
   shall be entitled to not more than ten percent (10%) of the market
   value of the property, based on the current tax declaration at the time
   of actual entry or the filing of the complaint for eminent
   domain, whichever is earlier.
2. In case the property is acquired by purchase, the
   fair market value of the area actually occupied shall be paid,
   based on the current tax declaration at the time of actual entry or the
   filing of the complaint for eminent domain, whichever is earlier.
3. In both instances under (1) and (2), the owners of the
   property shall be compensated for damages to improvements based on the
   valuation thereof appearing in the current tax declaration at the time
   of actual destruction or the filing of the complaint for eminent
   domain, whichever is earlier; Provided, further, That if the
   improvements could be removed without substantial destruction and
   impairment of their use, the compensation shall be fifty per cent (50%)
   of the current value therefor; Provided, finally, That if the
   crops are harvested before actual destruction thereof, no
   compensation therefor shall be paid, notwithstanding the filing of
   the complaint for eminent domain.

All actions for the recovery of compensation and damages
against the National Irrigation Administration under paragraphs (1), (2)
and (3) hereof, shall be filed with a competent court within five (5)
years from the date of entry of the land or destruction of the
improvements or crops, after which period, the right of possession
and/or ownership of the National Irrigation Administration shall be
considered vested and absolute. All other actions for the recovery of
compensation and damages to private property and improvements occasioned
by the construction, operation and maintenance of irrigation facilities
and other hydraulic structures under the administration of the National
Irrigation Administration, which have accrued ten (10) or more years
prior to the approval of this decree are deemed to have prescribed and
are barred forever.

6. To establish/create such services and facilities and other
   means of social and economic assistance to the community which might be
   adversely and directly affected by the construction of National
   Irrigation Administration projects, and to do all such other things, and
   to transact such business, as are directly or indirectly necessary,
   incidental or conducive to the attainment of the above powers and
   objectives, including the power to establish and maintain all the powers
   of a corporation under the Corporation Law, insofar as they are not
   inconsistent with the provisions of this Act.”

SEC. 2. Section 3, Republic Act Numbered Thirty-six Hundred
and One is hereby repealed, except paragraphs one and eight thereof
which are amended and a new paragraph which is added to read as follows:

“SEC. 3. (a) Capitalization. — The capitalization of
the National Irrigation Administration shall be two billion pesos, to be
subscribed and paid entirely by the Government of the Republic of the
Philippines which shall deliver annually to the NIA the sum of two
hundred million pesos until its whole capitalization is fully paid.

2. Operating Capital. — All amounts collected by NIA as
   irrigation fees, administration charges, drainage fees, equipment
   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
   Administration, and all other income shall be added to its operating
   capital.
3. Funds for general administration, current operating expenses,
   and operation, maintenance and administration expenses of irrigation
   systems, shall be included in the annual general appropriations
   decree/act. Over and above the requirements of operation, maintenance
   and administration expenses of irrigation systems of the National
   Irrigation Administration and its central office and regional and
   provincial offices, there shall be included in the annual general
   appropriations act an amount not less than six million pesos a year to
   finance feasibility studies, investigations, surveys, and plans
   preparation for projects.”

SEC. 3. Authority to incur foreign loans. — The
National Irrigation Administration is authorized to contract loans,
credits, in any convertible foreign currency or capital goods, and to
incur indebtedness from time to time with foreign governments, or any
international financial institutions or fund sources, the total
outstanding amount of which, excluding interests, shall not exceed five
hundred million United States dollars or the equivalent thereof in other
currencies, on such terms and conditions as it shall deem appropriate
for the accomplishment of its objectives, the provisions of existing
laws to the contrary notwithstanding; and to enter into and execute
contracts and other documents specifying such terms and conditions.

The President of the Philippines, by himself, or through his duly
authorized representatives, is hereby authorized to negotiate and
contract with foreign governments or any international financial
institution or fund sources in the name and on behalf of the National
Irrigation Administration, one or several loans, for the purpose of
promoting the irrigation program and the construction of
multiple-purpose water resources projects.

The President of the
Philippines, by himself, or through his duly authorized representative,
is hereby further authorized to guarantee, absolutely and
unconditionally, as primary obligor and not as mere surety, in the name
and on behalf of the Republic of the Philippines, the payments of the
loans, credits and indebtedness up to the amount herein authorized, over
and above the amounts which the President of the Philippines is
authorized to guarantee under existing laws, as well as the performance
of all or any of the obligations undertaken by the National Irrigation
Administration in the territory of the Republic of the Philippines
pursuant to loan agreements entered into with foreign governments or
any international financial institutions or fund sources.

The
loans, credits and indebtedness contracted under this section and the
payments of the principal, interest and other charges thereon, as well
as the importation of machinery, equipment, materials, supplies and
services, by the National Irrigation Administration, paid from the
proceeds of any loan, credit, or indebtedness incurred under this act,
shall also be exempted from all direct and indirect taxes, fees,
imposts, other charges and restrictions, including import restrictions
previously and presently imposed, and to be imposed by the Republic of
the Philippines, or any of its agencies and political subdivisions.

SEC. 4. Section 4, Republic Act Numbered Thirty-six Hundred and
One, is hereby amended to read as follows:

“SEC. 4. Board of Directors. — The powers and
functions of the National Irrigation Administration shall be exercised
by a Board of Directors composed of six members, to wit: The Secretary
of Public Works, Transportation and Communications, who shall be the
Chairman, the Administrator of the National Irrigation Administration,
who shall be the Vice-Chairman, the Director General of the National
Economic and Development Authority, the Secretary of Agriculture, the
General Manager of the National Power Corporation, and one member who
shall be appointed by the President of the Philippines on recommendation
of any national rice and corn organization of good standing and who
shall serve for a term of four years unless sooner removed.

In the case of failure of a member to attend meetings of the Board
due to physical incapacity or any temporary disability, the
Undersecretary or the Assistant Head of the office or agency to which
the member concerned belongs, shall attend the meetings of the board,
with the power to vote.

For actual attendance at regular meetings, each member of the
Board or his representative as authorized in the preceding paragraph,
shall receive a per diem of three hundred pesos, and one hundred pesos
for special meetings, but the total amount of per diem that a member may
receive in a month shall in no case exceed one thousand five hundred
pesos. The Board shall fix the amount of representation and
transportation allowances that the members may receive.”

SEC. 5. Section 5, Republic Act Numbered Thirty-six Hundred
and One, is hereby amended to read as follows:

“SEC. 5. Powers and Duties of the Board of Directors.
— The Board of Directors shall have the following powers and duties:

1. To formulate and adopt policies for the management and
   operations of the National Irrigation Administration, and to
   prescribe, amend, and repeal, with the approval of the President
   of the Philippines, rules and regulations governing the manner in
   which the general business of the National Irrigation Administration may
   be conducted, including provisions for the formation of such
   committee or committees as the Board may deem necessary to
   facilitate its business;
2. To recommend to the President of the Philippines the
   appointment of such number of Assistant Administrators as the exigencies
   of the service may require from a list of names submitted by the
   Administrator; to fix the compensation of the Irrigation
   Administrator and his Assistant/s, and by at least two-thirds
   vote of all the members, to recommend the suspension and/or
   removal of the said officials for cause;
3. To approve, subject to the final action of the President,
   the annual and/or supplemental budget of the NIA which may
   be submitted to the Board by the Irrigation Administrator from time to
   time; and
4. To appoint and fix the compensation of a Board Secretary who
   shall hold office at the pleasure of the majority of the members of the
   Board.

SECTION 6. Section 6, Article III, Republic Act Numbered
thirty-six hundred and one, is hereby amended to read as follows:

SEC. 6. Prohibition for Board Members. — The Chairman
and other members of the Board of Directors, except the Irrigation
Administrator, shall not at the same time serve in the NIA in any other
capacity, unless so authorized by the President.”

SEC. 7. Section 7, Article IV, Republic Act Numbered
Thirty-six Hundred and One, is hereby amended to read as follows:

“SEC. 7. Managing Head. — The management of the NIA
shall be vested in the Irrigation Administrator who shall be appointed
by the President of the Philippines.”

SEC. 8. Section 8(d), Article IV, Republic Act Numbered
Thirty-six Hundred and One, is hereby amended to read as follows:

“(d) With the approval of the Board, to determine the staffing
pattern and the number of personnel of the National Irrigation
Administration, to fix their salaries including other emoluments, and to
define their powers and duties. For this purpose, the Irrigation
Administrator shall recommend to the Board a staffing pattern and salary
pay plans in other government corporations of the same category as the
National Irrigation Administration, the provisions of existing rules and
regulations on wage and position classification notwithstanding,
especially with respect to technical and professional positions.”

With the approval of the Board, to appoint and remove, suspend, or
otherwise discipline, for cause, any subordinate employee of the
National Irrigation Administration.

SEC. 9. Separability
Clause. — The provisions of this Decree are hereby declared to be
separable and if any clause, sentence, provision or section of this
Decree or its application thereof to any person or circumstance should,
for any reason, be held invalid or unconstitutional, such invalidity or
unconstitutionality shall not affect the other provisions or application
of this Decree which can be given force and effect.

SEC. 10.
Repealing clause. — All laws, decrees, charters, executive orders,
administrative orders, proclamation, rules and regulations or parts
thereof insofar as they are inconsistent with the provisions of this
Decree are hereby repealed or modified accordingly.

SEC. 11. Effectivity. — This Decree shall take
effect upon its approval.

Done in the City of Manila, this 11th day of September, in the
year of Our Lord, Nineteen Hundred and Seventy-four.