Project Information

The study involved the following: (i) review and assessment of the relevant reports, policies, data, institutions, organizations and irrigation projects related to the new cost recovery scheme; (ii) assessment of the social, economic, and natural resource impacts from implementation of revised irrigation service fee (ISF) in National Irrigation Systems (NIS) and amortization rate in Communal Irrigation Systems (CIS); (iii) assessment of the impact of the revised cost recovery policy on the institutional arrangements for sustained operation and maintenance of irrigation facilities.

i)     Reviewed and assessed the relevant reports, policies, data, institutions, organizations and irrigation projects in the Philippines related to the new ISF scheme.

ii)     Reviewed and assessed NIA’s recent consolidated income statement and assessed the impact of enforcement of Socialized ISF on NIA’s account.

iii)     Assessed the impact on the implementation of CIS, highlighting the abolition of equity contribution during the construction and lowered minimum amortization payment and exemption of amortization payment by paying 30 percent of construction cost upfront.

iv)     Assessed the impact on the proposed increase of administration and overhead charges from 5 percent to 10 percent of the total cost of projects undertaken by NIA, and assessed the potential impact of increased overhead costs on systems’ economic viability.

v)     Assessed the impact on the condonation of irrigation service fees and CIS amortization backlog accounts being collected by NIA.

vi)     Reviewed and assessed the O&M subsidy given to NIA to compensate the low collection ratio of ISF and assessed the need of the subsidy in the future.

vii)     Analyzed the social impact of Socialized ISF especially the role of IAs n NISs and CISs and the extent to   which any cross-subsidy will actually reach the rural poor.

viii)     Reviewed and assessed the streamlining plan of NIA and the need for possible restructuring of NIA’s organization due to the enforcement of Socialized ISF.

ix)     Assessed the impact of implementation of the socialized ISF policy to transfer NISs to IAs in accordance with the Agriculture and Fishery Modernization Act.

x)     Reviewed NIA’s plan for gradual transfer of NISs to IAs, addressed the issues and constraints to such transfers and identified measures to overcome those.