SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
'14 
FEB 26 P 2 :10 
SENATE 
S.B. NO. 2145 
Introduced by SENATOR FERDINAND R. MARCOS, JR. 
AN ACT STRENGTHENING THE PROCESS Of ACQUIRING THE RIGHT Of WAY fOR 
NATIONAL GOVERNMENT INfRASTRUCTURE PROJECTS, REPEALING fOR THIS PURPOSE 
REPUBLIC ACT NO, 8974, OTHERWISE KNOWN AS 
"AN ACT TO fACILITATE THE ACQUISITION Of RIGHT-Of-WAY. SITE. OR LOCATION fOR 
NATIONAL GOVERNMENT INfRASTRUCTURE PROJECTS. APPROPRIATING fUNDS THEREfOR, 
AND FOR OTHER PURPOSES" 
Explanatory Note 
National government infrastructure projects are crucial for public welfare and 
the country's development. They are investments in the nation's economy and future. 
Indeed, the delivery of basic services. the mobility of our communities, and the day-to-
day operations of business on all levels depend on the existence of reliable 
infrastructure, such as roads. bridges, airports, seaports, water supply, classrooms. and 
public markets, among others. 
' 
The acquisition of property needed for these projects, however, often entails a 
long and tedious process, which can be frustrating to both private land owners and the 
State. As the law stands, there are also many burdens imposed upon private land 
owners that discourage them from cooperating with the Government in the 
implementation of its infrastructure projects. As a result, many important national 
government infrastructure projects are often delayed to the detriment of the general 
public. 
To balance the interests of the State and of private land owners and ensure that 
the nation's infrastructure projects are completed efficiently and equitably, with due 
consideration for private rights, there is an urgent need to remove "roadblocks", so to 
speak, by amending Republic Act No. 8974, otherwise known as "An Act to Facilitate 
the Acquisition of Right-of-Way, Site or Location for National Government Infrastructure 
Projects and For Other Purposes". 
In view of thereof, the passage of this bill is earnestly requested. 
fERDINAfros, JR 
• 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B. NO. 2145 
Introduced by SENATOR FERDINAND R. MARCOS, JR. 
'14 
FEB 26 P2:1 0 
AN ACT STRENGTHENING THE PROCESS OF ACQUIRING THE RIGHT OF WAY FOR 
NATIONAL GOVERNMENT INFRASTRUCTURE PROJECTS. REPEALING FOR THIS PURPOSE 
REPUBLIC ACT NO. 8974. OTHERWISE KNOWN AS 
"AN ACT TO FACILITATE THE ACQUISITION OF RIGHT-OF-WAY. SITE. OR LOCATION FOR 
NATIONAL GOVERNMENT INFRASTRUCTURE PROJECTS. APPROPRIATING FUNDS THEREFOR. 
AND FOR OTHER PURPOSES" 
Section 1. Declaration of Policy. - Article III. Section 9 of the Constitution states that 
private property shall not be taken for public use without just compensation. Towards 
this end. the State shall ensure that owners of real property acquired for national 
governrnent infrastructure projects are prornptly paid adequate consideration or just 
cornpensation. while at the sarne tirne also ensuring the expeditious acquisition of the 
land or property requirernents for the said projects. 
SEC. 2. National Government Infrastructure Projects. - The terrn "national governrnent 
infrastructure projects" shall refer to all national governrnent infrastructure and its public 
service 
facilities. engineering works and service contracts, including projects 
undertaken by governrnent-owned and -controlled corporations. projects covered by • 
Republic Act No. 6957. as arnended by Republic Act No. 7718. otherwise known as the 
"Build-Operate-and-Transfer Law". and all other related and necessary activities. such 
as 
site 
acquisition. 
supply 
and/or installation 
of 
equiprnent and 
rnaterials. 
irnplernentation. construction. cornpletion. operation. maintenance, irnprovernent. 
repair and rehabilitation. regardless of the source of funding. 
SEC. 3. Modes of Acquiring Real Property. - The government, through the appropriate 
irnplernenting agency. may acquire real property needed as right-of-way. site or 
location for any national governrnent infrastructure project through donation, 
negotiated sale, expropriation. or any other mode of acqUisition as provided by law. 
In cases of land covered by Comrnonwealth Act No. 141. the appropriate 
irnplernenting agency shall provide financial assistance to landowner concerned for 
the area affected under Section 112 thereof in such arnount as rnay be deterrnined by 
the irnplementing agency concerned. in consultation with the Cornrnission on Audit 
and Office of the Local Assessor concerned, pursuant to Section 18 of Executive Order 
No. 1035. series of 1985. In exchange for the financial assistance given. the landowner 
concerned shall execute a waiver and quitclairn in favor of the Governrnent. 


SEC. 4. Standards for the Assessment of the Value of the Property in case of Negotiated 
Sale. - In order to facilitate the determination of the market value of the property for 
purposes of a negotiated sale under this Act, the following relevant factors and 
standards shall be observed: 
a) 
The classification and use for which the property is suited; 
b) 
The development cost for improving the land; 
c) 
The value declared by the owners; 
d) 
The current selling price of similar lands in the vicinity; 
e) 
The reasonable disturbance compensation for the removal and/or 
demolition of certain improvements on the land and for the value of 
improvements, thereon; 
f) 
g) 
h) 
The size, shape or location, local real property tax declaration, and zonal 
valuation of the land; 
The price of the land as manifested in the ocular inspection findings, or in 
oral and documentary evidence presented; and 
other information, facts, events or circumstances that will enable the 
affected property owners to have sufficient funds to acquire similarly 
situated lands of approximate areas as those' to be acquired from them 
by the government, and thereby rehabilitate themselves as early as 
possible, 
For purposes of this Section, the implementing rules and regulations to be 
prepared under Section 11 hereof shall include, among other things, the Terms of 
Reference, which shall be used by the govemment financial institutions and 
independent property appraisers in the determination of the market value of the land, 
The said Terms of Reference shall define in detail the factors and standards stated in this 
Section, 
SEC. 5. Rules on Negotiated Sale. - The implementing agency may offer to acquire, 
through negotiated sale, the right-of-way, site or location for a national government 
infrastructure project, under the following rules: 
a) 
The implementing agenq shall offer to the property owner, as 
consideration for the purchase of the property the sum of: 
i) 
The current market value of the land; 
ii) 
The replacement cost of structures and improvements thereon; 
and 
iii) 
The current market value of crops and trees thereon. 
To determine the said price offer, the implementing agency may engage the 
services of a government financial institution with adequate experience in property 
appraisal, or an independent property appraiser accredited by the Bangko Sentral ng 
Pilipinas (BSP) and a professional association of property appraisers recognized by the 
BSP to be procured by the implementing agency in accordance with Republic Act No. 
9184, 


If the property owner accepts the offer for the purchase of the property through 
negotiated sale, the parties shall proceed to execute the necessary deed of sale as 
provided hereunder. If the property owner does not accept·the offer, the implementing 
agency shall initiate the expropriation proceedings pursuant to Section 6 hereof. 
Owners of structures and improvements, whether or not they have legally 
recognized rights to the land, shall be offered as consideration the replacement cost of 
structures and improvements therein, regardless of the source of funds for the project. 
b) The property owner and the implementing agency shall execute a Deed of 
Absolute Sale, provided that the property owner has submitted to the implementing 
agency the certificate of title over the property, tax dedaration, real property tax 
certificate, and other documents necessary to transfer the title to the Republic. The 
implementing agency shall then cause the annotation of the Deed of Absolute Sale on 
the certificate of title. 
c) With regard tathe taxes and fees relative to the transfer of title of the property to 
the Republic of the Philippines through negotiated sale, the implementing agency shall 
pay the capital gains tax, documentary stamp tax, local transfer tax, and registration 
fees, while the property owner shall pay all unpaid real property taxes, if any. 
. 
If requested by the property owner, the implementing agency shall remit to the 
Bureau of Internal Revenue (BIR) the amount corresponding to any unpaid real 
property tax, subject to deduction of this amount from the total negotiated price, 
provided, however, that the said amount is not more than the negotiated price. 
d) Upon the execution of the Deed of Absolute Sale, the implementing agency 
shall pay the property owner: 
i) 
Fifty percent (50%) of the negotiated price, exdusive of taxes remitted by 
the implementing agency to the BIR under Paragraph (c) above, for the 
affected land; and 
ii) 
Seventy percent (70%) of the negotiated price for the affected structures 
and improvements, crops and tre,es on the land. 
e) Upon issuance of a new title in the name of the Republic, the implementing 
agency shall pay the property owner the remaining fifty percent (50%) of the 
negotiated price of the affected land, and the remaining thirty (30%) of the affected 
structures and improvements, crops and trees, provided the land has already been 
completely deared of the structures and improvements, crops and.trees thereon. From 
this remaining amount shall be deducted the amount of unpaid taxes remitted by the 
implementing agency to the BIR under Paragraph (c) above, but which shall in no case 
exceed the total negotiated price. 
f) 
The provisions of Section 5 shall apply retroactively to outstanding daims 
for right-of-way payments against the Government. 
SEC. 6. Guidelines for Expropriation Proceedings. - Whenever it is necessary to acquire 
real property for the right-of-way, site or location for any national government 
infrastructure through expropriation, the appropriate implementing agency, through 
the Office of the Solicitor General, the Office of the Government Corporate Counsel, or 
their deputized government or private legal counsel, shall initiate the expropriation 
proceedings before the proper court under the following guidelines: 


a) 
Upon the filing of the complaint or at anytime thereafter, and after due 
notice to the defendant land owner, the implementing agency shall immediately 
deposit with the court in favor of the owner the amount equivalent to the sum of: 
i) 
One hundred percent (100%) of the value of the land based on the current 
relevant zonal valuation of the Bureau of Intemal Revenue (BIR), issued not 
more than three years prior to the filing of the expropriation complaint, • 
subject to Section 6 (c) below; 
ii) 
The replacement cost, valued at current market value, of the structures 
and improvements, as determined by the implementing agency, 
government financial institution or independent property appraiser to be 
procured in accordance with Section 5 (a) hereof; and 
iii) 
The current market value of crops and trees located within the property, 
likewise determined in accordance with Section 5 (a) hereof. 
In case the owner of the property cannot be found, o( is unknown, or is 
deceased in cases where the estate has not been settled, after exerting due diligence, 
or where there are conflicting claims over the ownership of the property or 
improvements and structures thereon, the implementing agency shall deposit the 
amount stated above with the court for the benefit of the person to be ultimately 
adjudged in the same proceedings as entitled thereto, in accordance with the Rules of 
Court. 
b) 
The above provision shall likewise apply to the determination of the cost of 
structures and improvements of all owners of structures and improvements, whether or 
not they have legally recognized rights to the land, regardless of the source of funds of 
the project. 
c) 
Upon deposit with the court of the amount stated in Paragraph (a) 
above, the court shall, motu proprio or on motion, immediately issue the writ of 
possession or order to take possession of the property. 
d) 
The court shall release the said amount to the owner upon presentation of 
sufficient proofs of ownership. 
e) 
In provinces, cities, municipalities and other areas where there is no land 
classification or no zonal valuation, or where the existing zonal valuation is more than 
three years, the City or Municipal Assessor or the BIR, as the case may be, shall, within 
the period of sixty (60) days from the date of filing of the expropriation case, to update 
or cause the revision of the existing land classification and zonal valuations for the said 
areas, 
In cases where the completion of a government infrastructure project is of 
utmost urgency and importance, as certified by the appropriate implementing agency, • 
and where there is as yet no land classification or existing zonal valuation of the area 
concerned, or the zonal valuation is more than three years, the implementing agency 
shall consider and use the BIR zonal valuation and classification of lands of similar 
nature and characteristic located within the immediate vicinity, as the basis for 
valuation. 
f) 
In the event that the owner of the property contests the implementing agency's 
offered amount, the court shall, within sixty (60) days from the date of filing of the 
complaint for expropriation, determine the just compensation to be paid to the owner. 
Upon finality of the court's deciSion, the implementing agency shall pay the owner the 
difference between the amount already paid and the just compensation as 
determined by the court, 


g) With regard to the taxes and fees relative to the transfer of title of the property to 
the Republic of the Philippines through expropriation proceedings, the implementing 
agency shall pay the capital gains tax, documentary stamp tax, local transfer tax, and 
registration fees, while the property owner shall pay all unpaid real property taxes, if 
any. 
SEC. 7. Ecological and Environmental Concerns. - In all cases involving the acquisition 
of right-of-way, site or location for any national govemment infrastructure project, the 
implementing agency shall take into account the ecological and environmental 
impacts of the project. through the assistance of the Department of Environment and 
Natural Resources (DENR). 
In the planning, implementation, construction, renovation and retrofitting of 
govemment infrastructure projects, the appropriate implementing agency shall always 
faithfully comply with environmental laws, land use laws and ordinances, and all 
pertinent provisions of Republic Act No. 7160, as amended, otherwise known as the 
Local Govemment Code of 1991. 
SEC 8. Relocation of Informal Settlers. - The local govemment units and implementing 
agencies concemed, in coordination with the Housing and Urban Development 
Coordinating Council (HUDCC), the National Housing Authority (NHA) and other • 
appropriate key shelter agencies, shall provide and develop resettlement sites, 
including the provision of adequate basic services and community facilities, for informal 
settlers that may have to be evicted or removed from the lands and properties to be 
acquired under this Act, in accordance with Republic Act No. 7279, otherwise known as 
the Urban Development and Housing Act of 1992. 
In case of unjustifiable refusal by the informal settlers to demolish their structures and 
other improvements thereon, despite the issuance of the order or writ of possession by 
the court under Section 4 hereof, the court shall, motu proprio or on motion, issue the 
necessary order or writ of demolition for the purpose of removing or dismantling any 
and all structures found within the subject property. In effecting s\lch order or writ of 
demolition, the implementing agency shall comply with the procedures laid down in 
Sections 28 and 29 of Republic Act No. 7279. 
SEC. 9. Appropriations for Acquisition of Right-of-Way, Site or Location for National 
Government Infrastructure Projects in Advance of Project Implementation. -
The 
government shall provide adequate appropriations that will allow the concerned 
implementing agencies to acquire the required right-of-way, site or location for 
national government infrastructure projects in advance of project implementation. 
These appropriations shall cover the funds needed to cover the following expenses 
directly related to land or property acquisition under this Act: 
a) 
Cost of parcellary surveys and appraisal of properties affected by the 
project; 
b) 
Compensation 
for 
the 
project-affected 
land, 
structures 
and 
improvements, crops and trees; 
c) 
Cost of development and implementation of resettlement projects under 
this Act, including planning, social preparation, and other activities under 
the resettlement action plan; 
., 


d) 
Related expenses of the implementing agency, including capital gains 
tax, documentary stamp tax, local transfer tax, and registration fees for 
the transfer of titles, and other related expenses for right-of-way 
administration and management. 
In Public-Private Partnership (PPP) projects, the modalities of which are defined in 
Republic Act No. 7718, the implementing agency may, as part of the contract terms 
and conditions, require the project proponent to advance the funds covering the cost 
of the right-of-way which shall be reimbursed later by the implementing agency, or 
finance the right-of-way cost for the govemment which shall be recovered partly or 
fully by the proponent from the tolls, fees, or tariffs to be charged to the users of the 
completed project. 
SEC. 10. Regulation of Developments within Declared Right-of-Way. -Upon the approval 
of a government infrastructure project by the head of the implementing agency 
concerned, with funding authorized in the General Appropriations Act and with 
defined right-of-way, no national government agency or local government unit shall, 
within two years from date of offer to purchase of or filing of complaint for expropriation 
involving the land or property subject of acquisition under this Act, allow any 
development or construction thereon, or issue any building, construction, development 
or business permit related thereto, which may be contrary to the approved pions and 
purposes of the project, unless explicitly authorized by the head of the implementing 
agency for justifiable reasons. 
SEC. 11 Rules and Regulations. - Within sixty (60) days from effectivity of this Act, a 
Committee composed of the Secretary of the Department of Public Works and 
Highways (DPWH), as chairperson, and the Secretaries of the Department of 
Transportation and Communications (DOTC), the Department of Energy (DOE), the 
Department of Justice (DOJ), the Department of Budget and Management (DBMJ; 
Department of Interior and Local Government (DILG), the National Economic 
Development Authority (NEDAJ, and the Chairman of the Housing and Urban 
Development Coordinating Council (HUDCC), in consultation with key stakeholders 
from the private sector as may be determined by the Committee, shall jointly issue the 
necessary rules and regulations for the effective implementation of this Act. 
SEC. 12. Separability Clause. If any provision of this Act is declared unconstitutional or 
invalid, other parts or provisions hereof shall continue to be in full force and effect. 
SEC~ 13. Repealing Clause. - All laws, decrees, executive orders, rules and regUlations, 
or parts thereof, inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
SEC. 14. Effectivity Clause. - This Act shall take effect immediately after its publication in 
the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved,