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PRESIDENTIAL DECREE NO. 552
PRESIDENTIAL DECREE NO. 552 -
AMENDING CERTAIN SectionS OF REPUBLIC ACT NUMBERED THIRTY-SIX HUNDRED
AND ONE, ENTITLED, "AN ACT CREATING THE NATIONAL IRRIGATION
ADMINISTRATION"
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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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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:cralaw:red
Section 1. Section 2, Republic Act Numbered
Thirty-Six Hundred and One, is hereby amended to read as follows:cralaw:red
"Sec. 2. Powers and Objectives. — The NIA shall have
the following powers and objectives:cralaw:red
(a) 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; chanroblesvirtualawlibrary
(b) 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 of 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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
(c) 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; chanroblesvirtualawlibrary
(d) 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;chanroblesvirtualawlibrary
(e) 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;chanroblesvirtualawlibrary
The National Irrigation Administration is empowered to exercise the
right of 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:cralaw:red
(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. chanroblesvirtualawlibrary
(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 thereof; 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
of 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. chanroblesvirtualawlibrary
(f) 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
subsidiaries, and in general, to exercise all the powers of a
corporation under the Corporation Law, insofar as they are not
inconsistent with the provisions of this Act."
Section 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:cralaw:red
"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.
(b) 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. chanroblesvirtualawlibrary
(c) Funds for general administration, current
operating expenses, and operation, maintenance and administration
expenses or 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 of its central
office and regional and provincial offices, there shall be included in
the annual general appropriations act an account not less than six
million pesos a year to finance feasibility studies, investigations,
surveys, and plans preparation for projects."
Section 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 representative, 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. chanroblesvirtualawlibrary
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 payment 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 institution 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.
Section 4. Section 4, Republic Act Numbered
Thirty-six Hundred and One, is hereby amended to read as follows:cralaw:red
"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. chanroblesvirtualawlibrary
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."
Section 5. Section 5, Republic Act Numbered
Thirty-six Hundred and One, is hereby amended to read as follows:cralaw:red
"Sec. 5. Powers and Duties of the Board of Directors.
— The Board of Directors shall have the following powers and duties:cralaw:red
(a) 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; chanroblesvirtualawlibrary
(b) 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;chanroblesvirtualawlibrary
(c) 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
(d) 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:cralaw:red
"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."
Section 7. Section 7, Article IV, Republic Act
Numbered Thirty-six Hundred and One, is hereby amended to read as
follows:cralaw:red
"Sec. 7. Managing Head. — The management of the NIA
shall be appointed by the President of the Philippines." chanroblesvirtualawlibrary
Section 8. Section 8(d), Article IV, Republic Act
Numbered Thirty-six Hundred and One, is hereby amended to read as
follows:cralaw:red
"(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.
Section 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.
Section 10. Repealing Clause. — All laws, decrees,
charters, executive orders, administrative orders, proclamations, rules
and regulations, or parts thereof insofar as they are inconsistent with
the provisions of this Decree are hereby repealed or modified
accordingly.
Section 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.
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