Presidential Decree No. 1702 amending Section 3 of Republic Act No. 3601, as Amended by Presidential Decree No. 552.

Section 3 of Republic Act No. 3601, as amended by Presidential Decree No. 552, is amended as follows: a) Capitalization. The authorized capital stock of the National Irrigation Administration shall be ten billion pesos, which shall be subscribed and paid entirely by the Government of the Republic of the Philippines. The amount is hereby appropriated for the purpose out of any funds in the Treasury not otherwise appropriated: Provided, That only such amounts as are actually necessary for the implementation of projects of the Administration shall be released as payments on capital subscriptions, subject to approval of the President as provided by pertinent budget laws. b) Operating Capital. All amounts collected by the National Irrigation Administration as irrigation fees, administration charges, drainage fees, equipment rentals, proceeds from the sale of unserviceable equipment and materials, sale of all reparation goods allocated to the defunct Irrigation Service Unit and the National Irrigation Administration, and all other income shall be added to its operating capital. The National Irrigation Administration is authorized to impose as an administration and engineering overhead charge, 5% of the total cost of projects undertaken by it, which shall likewise form part of its operating capital.