NIA posts financial turnaround in first half

The financial performance of the National Irrigation Authority (NIA) for the first half of this year has been most encouraging, Agriculture Secretary Leonardo Q. Montemayor said in a report to President Arroyo.

"Through an interactive mix of various revenue enhancing initiatives and cost-cutting measures, NIA with Administrator Jesus Emmanuel M. Paras at the helm, accomplished a thumping P659-million revenue collection and registered an P80-million net operating income in the first six months, Montemayor said.

Collection of irrigation service fees (ISF) is the single biggest source of NIA income. ISF this January-June 2002 period increased by 48 percent compared with the first half of 2001 – from P213.7 million to P315.9 million. For the period 1991-2000, ISF collection average was a mere 46 percent. The 2001 collection efficiency rose to 60 percent as total collection reached P474.5 million, up by 40 percent from the 2000 level of P393.2 million.

Likewise, pump amortization rose from a mere P1.3 million to P4.7 million. Revenues from equipment rentals surged 11 percent, from P44.6 million to P49.6 million. In 2001, revenues reached P185.6 million, this was P10 million higher than that of 2000.

For the first time in so many years, the 2001 salaries and contributions to GSIS, Pag-IBIG and PhilHealth of NIA’s field personnel were paid for without government subsidies. The P100-million unpaid salaries as of December 2000 were paid for with the P74.5-million 2001 subsidy from the president plus substantial amount from the agency’s 2001 income.

Aside from being able to pay the salaries and pre-need premiums of the personnel, management gave out P10,000 extra bonus in year-end 2001 and disbursed P19 million for COLA/AA differentials from NIA’s 2001 current accounts surplus or savings. – APIS