More than 1.3 million liters per second (lps) of irrigation water—originally intended for farmland—now go largely unused as many agricultural areas have been converted into residential and commercial communities. Yet, water rights remain with the National Irrigation Administration (NIA), leaving a valuable public resource underutilized amid rising demand for safe, reliable water.
To address the disconnect between land use and water allocation, the Philippine Institute for Development Studies (PIDS) urges the government to repurpose NIA’s idle irrigation water rights for broader public use, including household supply and other municipal needs.
This recommendation was highlighted in the PIDS study “Repurposing Rights to Expand Public Access to Water: The Case of the National Irrigation Administration,” presented at a June 26, 2025, policy forum.
“This gives way for a significant opportunity to expand access for various stakeholders to invest in water development,” said Amerah Azis, PIDS Research Analyst and co-author of the study.
According to the study, a combination of land conversion, fragmented water governance, deteriorating infrastructure, and poor information flow has left large portions of NIA’s water allocations idle.
Under the 1976 Water Code, irrigation permits may be revoked when land is converted to non-agricultural use.
However, instead of cancelling rights, agencies have opted for Memoranda of Agreements (MOAs) that allow NIA to retain these permits while enabling multipurpose use, including household and commercial applications.
The study points to the fragmented water sector, where 21 agencies handle 14 overlapping functions, resulting in planning gaps, regulatory inefficiencies, and misaligned mandates.
While irrigation’s share of total water permits dropped from 80% in 2012 to 74% in 2022, industrial use increased from 11% to 15 %, and the municipal share stayed at 11%, there are still no formal mechanisms to reallocate these unused rights for alternative uses.
Beyond governance gaps, physical and economic barriers also limit the feasibility of repurposing water resources.
Many of NIA’s dams and irrigation systems are in poor condition—heavily silted, clogged with waste or water lilies, and in some cases receiving little to no water due to upstream land development.
Water quality is compromised in several sites due to wastewater discharge, while built-up areas have diverted or blocked natural water inflows, further degrading dam performance.
Citing a World Bank survey, Azis noted that 68% of local government unit (LGU)-run water utilities operate at a loss, primarily due to low tariff settings and high operational costs.
For private firms, the uncertainty around water volumes, poor infrastructure, and lack of financial viability make it difficult to justify investment, particularly in bulk water projects that require economies of scale.
Private sector seen as key to bridging the gap
To meet the growing demand, the 2021 Philippine Water Supply and Sanitation Master Plan estimates that 50% of the necessary water infrastructure must come from the private sector.
The 2023 Public-Private Partnership (PPP) Code offers an updated framework for such collaboration, particularly in projects that involve rehabilitating and upgrading existing assets.
Cavite emerged as a test case, having signed an agreement with NIA to repurpose irrigation water for broader use.
However, “decades of idleness and disuse have left many facilities needing rehabilitation, estimated to cost up to PHP 70 billion,” said Dr. Roehl Briones, PIDS Senior Research Fellow and lead author of the study.
Briones explained that despite signed MOAs, critical information, such as how much water NIA can release without compromising irrigation, remains unavailable.
“A lot of stakeholders remain confused. There are informational implications,” he emphasized.
NIA’s evolving role in a multipurpose water future
According to NIA Corporate Lawyer Mary Annabelle Cruz-Domingo, the agency now manages three major multipurpose dams—Magat, Upper Pampanga River, and Jalaur River—which support irrigation, hydropower, and other functions.
NIA is also conducting feasibility studies for mini-hydropower, aquaculture, eco-tourism, and bulk water supply projects on existing sites.
“We carefully screened and chose qualified company partners for these projects,” Cruz-Domingo said, highlighting the growing interest from the private sector.
These efforts are guided by NIA Memorandum Circular Nos. 128 (Series of 2021) and 132 (Series of 2023), which outline lease and development frameworks, promoting transparency and competitiveness.
“The ultimate goal is for NIA to become one of the leading government corporations in promoting renewable energy, while managing its real property assets to support national climate goals,” Cruz-Domingo added.
Fixing fragmentation: A department to lead water reform
The PIDS study emphasizes that successful repurposing depends not only on infrastructure or private capital, but on institutional reform.
The proposed Department of Water Resources, now under legislative consideration, aims to consolidate overlapping functions, streamline planning and regulation, and centralize data management.
By doing so, it would reduce inter-agency conflicts, accelerate investment, and provide clear policy direction for the sector.
“Flooding and irrigation problems cannot be solved on a piecemeal level and should have been given a comprehensive plan side by side,” Cruz-Domingo reiterated.
With evidence-based planning and reform-driven implementation, the repurposing of water rights can serve as a cornerstone for building a more resilient, inclusive, and sustainable water future.
Watch the forum playback at https://bit.ly/pidslive062625 or read the full study at https://bit.ly/pidspn2025-01. ### — RTG
