The Agency has continuously identified and introduced the following probable future operating environment strategies in pursuit of attaining its objectives:


Sometime in the late ‘80s and until late ‘90s, NIA Region 5 introduced the Annotation Program as its main strategy in its campaign in the collection of Irrigation Service Fee (ISF). This program is the process of annotating the unpaid ISF of an irrigation-user as preferred liens on his or her landowner’s land title. Its main objectives are:

  • To sustain the operation and maintenance of the system by increasing the low collection efficiency of ISF in the region with the end in view of providing funds for the regular maintenance of the system;
  • Generate awareness and inculcate into the minds of NIA beneficiaries that non-payment of ISFs directly affects their irrigation systems, livelihood and the future of their children, and that it is not being tolerated nor condoned by the government.

This strategy is backed up by RA 3601and PD 552 which empowers NIA to charge and collect irrigation fees or administration charge from beneficiaries of systems constructed or administered by the NIA.


The NIA operates and maintains the NIS, with the participation of IAs under joint system management. It envisions a functional and dynamic NIA-IA partnership to accelerate irrigation development and provide efficient irrigation services.

Recently, it declared a policy in settling Irrigation Service Fee called the Compromise Agreement Program (CAP). Under this program, NIA adopts various strategies to fully collect ISF. As a government-owned and controlled corporation, NIA relies on self-generated funds for the operation and maintenance of NIS. The Irrigation Service Fee (ISF) is the primary source of funds for Operation and Maintenance. The CAP provides incentives to farmers to promptly pay their current account (CA). This incentive is “remission of penalty charges and portion of unpaid principal account not exceeding Php 100,000 through compromise settlement.”

NIA Memorandum Circular No. 30, s. 2003, provide the Implementing Guidelines (IG) for the Compromise Agreement Program (CAP) in Settling Irrigation Service Fee-Back Account (ISF-BA) of Farmer Beneficiaries of National Irrigation Systems (NISs). Availment of this program was extended until June, 2005.


This is a pilot program of NIA Region 5. Under the program, the NIA and the IA mutually agree to execute a Memorandum of Agreement (MOA) to jointly operate and manage the CIS the way the national irrigation systems are operated and managed. A hands-on process of operation, water distribution, billing and collection, as well as how to control their funds are the responsibility of the NIA.

In its initial operation, at least five (5) or more CISs will be selected in each province based on the following criteria:

  1. High investment exposure of NIA with very minimal annual amortization payment
  2. CIS with very high-accumulated back accounts on amortization no payments made for amortization with an area of not less than 100 has.
  3. Proximity to the provincial irrigation office for easier supervision and control
  4. Existence of an IA/cooperative managing the system
  5. Functional CIS
  6. CIS programmed for rehabilitation and has accumulated back accounts

The CIS selected were assessed on its physical, financial and institutional performances.