The Philippine Institute for Development Studies (PIDS) called on the government to repurpose over 1.3 million liters per second (lps) of currently unused irrigation water to address the Philippines’ escalating demand for safe and reliable water. This significant volume of water, originally allocated for agricultural use, is largely idle due to the conversion of farmlands into residential and commercial areas, while water rights remain with the National Irrigation Administration (NIA).
This critical recommendation stems from the PIDS study, “Repurposing Rights to Expand Public Access to Water: The Case of the National Irrigation Administration,” which was presented at a policy forum on June 26, 2025. The study highlights a disconnect between land use and water allocation, presenting a unique opportunity to expand water access for various stakeholders.
“This gives way for a significant opportunity to expand access for various stakeholders to invest in water development,” stated Amerah Azis, PIDS Research Analyst and co-author of the study.
The PIDS study identifies several factors contributing to the underutilization of NIA’s water allocations, including extensive land conversion, fragmented water governance across 21 agencies, deteriorating infrastructure, and poor information flow. While the 1976 Water Code allows for the revocation of irrigation permits upon land conversion, agencies have instead opted for Memoranda of Agreements (MOAs), enabling NIA to retain these permits for multipurpose use, including household and commercial applications.
Despite a decrease in irrigation’s share of total water permits, from 80% in 2012 to 74% in 2022, and an increase in industrial use, no formal mechanisms exist to reallocate these unused rights for alternative uses.
Beyond governance issues, physical and economic barriers also hinder repurposing efforts. Many of NIA’s dams and irrigation systems are in poor condition, suffering from silting, waste accumulation, and reduced water inflow due to upstream development. Water quality is also compromised in several areas due to wastewater discharge.
Economically, 68% of local government unit (LGU)-run water utilities operate at a loss due to low tariffs and high operational costs, according to a World Bank survey. For private firms, uncertainty regarding water volumes, poor infrastructure, and a lack of financial viability make investments, especially in bulk water projects, challenging.
Private Sector Seen as Key to Bridging the Gap
To meet the growing water demand, the 2021 Philippine Water Supply and Sanitation Master Plan estimates that the private sector must contribute 50% of the necessary water infrastructure. The 2023 Public-Private Partnership (PPP) Code provides an updated framework for such collaborations, particularly for rehabilitating and upgrading existing assets.
Cavite has emerged as a test case, with an agreement already signed with NIA to repurpose irrigation water for broader use. However, the study notes that “decades of idleness and disuse have left many facilities needing rehabilitation, estimated to cost up to PHP 70 billion,” explained Dr. Roehl Briones, PIDS Senior Research Fellow and lead author of the study. He also highlighted critical information gaps, such as the amount of water NIA can release without compromising irrigation, which often confuses stakeholders.
NIA’s Evolving Role in a Multipurpose Water Future
NIA Corporate Lawyer Mary Annabelle Cruz-Domingo affirmed NIA’s evolving role, stating that 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 actively conducting feasibility studies for mini-hydropower, aquaculture, eco-tourism, and bulk water supply projects on existing sites, with strong interest from qualified private sector partners.
These initiatives are guided by NIA Memorandum Circular Nos. 128 (Series of 2021) and 132 (Series of 2023), which promote transparency and competitiveness in lease and development frameworks. “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 underscores that successful water repurposing hinges on institutional reform, not just infrastructure or private capital. The proposed Department of Water Resources, currently under legislative consideration, aims to consolidate overlapping functions, streamline planning and regulation, and centralize data management. This 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 for the Philippines.
