CABANATUAN CITY, Philippines – The National Irrigation Administration’s Upper Pampanga River Integrated Irrigation Systems (UPRIIS) – the country’s largest national irrigation system (NIS) and operator of the giant Pantabangan Dam – has generated an income of P360.55 million in the first nine months of the year, or a P24.8 million increase from the P335.7 million it raised during the same period last year.
UPRIIS operations manager Josephine Salazar said they expect the system to post a higher income by year-end, especially during the last quarter where collection of irrigation service fees (ISFs) is at its peak.
“With the intensified collection of ISFs, we expect 2013 to be another banner year for UPRIIS in terms of income realized. This is a fitting tribute to the efforts of our division managers, the irrigators’ associations and our farmers,†said Salazar, the first female operations manager of a NIS in NIA’s 50-year history.
A copy of the comparative statement of income and expenses for 2012 and 2013 submitted by UPRIIS chief corporate accountant Marcelina Laguimun shows that ranged against expenses worth P177.3 million for the three quarters of the year, the system realized a net income of P177.3 million, P9.9 million higher than last year.
Salazar said the net income belies the claims of detractors that the UPRIIS registered a collection shortfall of P41 million.
“The figures and numbers don’t lie. I just don’t know where our critics got their figures,†she said.
Salazar said things are looking up for UPRIIS which first became viable in 2000, more than two decades since it started operating in 1976.
She said with the continuing support of President Aquino, Agriculture Secretary Proceso Alcala and National Irrigation Administration chief Claro Maranan, the corporate viability of the system has been sustained.
Records showed that the dam and reservoir division (DRD) posted the highest net income of P59.7 million followed by Division 3 (38.6 million), Division 2 (P30.39 million), Division 4 (P27.89 million), Division 1 (P20.36 million) and Division 5 (P15.7 million). The office of the manager also realized a net income of P15.47 million.
Last year, DRD posted a net income of P58.6 million, Division 3 P36 million, Division 4 P25 million, Division 1 P18.8 million and Division 5 P13 million. The OMS also posted a net income of P11.5 million.
The bulk of UPRIIS’ income came from ISFs worth P269.8 million, miscellaneous income (P89.49 million), rentals (P1 million) and fines and penalties (P521,164.18).
Salazar said the UPRIIS, which irrigates 112,000 hectares of agricultural lands in Central Luzon, has registered a viability index (VI) of 1.97 over the period, overshooting its target of 1.36.
All divisions plus the OMS exceeded their respective VI targets with Division 1 hitting a 1.92 VI as against the targeted 1.82. Other divisions with their actual Vis and targets were Division 2 (1.91 as against 1.81), Division 3 (2.43 from 2.37), Division 4 (2.16 against 1.58), Division 5 (1.5 as against 1.01), DRD (3.2 as against 1.09) and OMS (0.13 as against 0.07).
The corporate viability of the agency and its field offices is measured by computing the ratio of income to expenses.
Income comes from collection of ISFs paid by beneficiaries of NIS; pump and communal irrigation amortizations and equity contributions; equipment rental; sale of equipment and facilities; income from revenue-generating projects and incidental income such as interest earnings and sale of unused office supplies.
Expenses refer to operation and maintenance expenses, regular maintenance and repair of irrigation system facilities and residual expenses in the operation of dams.
“It is not only NIA but also UPRIIS which has entered the golden era in its 50th year,†she said.
She added that UPRIIS is focusing not only on its mandate of irrigation development - considered the key to increased crop output – but also improved quality of rice seeds, post-harvest facilities, marketing and credit support and farm mechanization, on construction of mini hydro-power plants along irrigation canals, eco-tourism in reservoir, and potable water supply.
As a government corporation, NIA and its support NIS such as UPRIIS must be viable, that is, their earnings must exceed their expenses. Otherwise, they have no reason for existence since they will just be a liability instead of an asset to the government.
A viability incentive grant (VIG) is given to field offices which attained viability equivalent to 10 percent of its net income. The parameters for the VIG was spelled out in memorandum circular 20 issued on April 4,2007 by then-OIC administrator Marcelino Tugaoen Jr. which also provided revised guidelines on field evaluation.
The VIG program is similar to the profit-sharing system in progressive private companies whereby workers who are productive are rewarded with bonuses or dividends. In the government sector, only NIA is known to have such profit-sharing scheme.