TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 796
af tils'
25 AUG-4 PI -16
RECavriJBV
Introduced by Senator Loren Legarda
AN ACT
ESTABLISHING A COMPREHENSIVE FRAMEWORK FOR THE ACQUISITION 
OF LAND FOR PUBLIC PURPOSES, INCLUDING INFRASTRUCTURE 
DEVELOPMENT, THROUGH MONETARY AND NON-MONETARY MEANS, 
PROVIDING FLEXIBLE MODES OF POSSESSION AND COMPENSATION, AND 
APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
Efficient and timely acquisition of land is fundamental to the success of 
government programs and development projects, including infrastructure, 
housing, disaster resilience, environmental protection, and social service delivery. 
Public land acquisition enables the State to advance national priorities, improve 
quality of life, and ensure critical services reach all communities.
At the heart of this process is the constitutional right of landowners to just 
compensation. Respecting this right promotes public trust, encourages voluntary 
cooperation, and reduces disputes that can otherwise delay projects and increase 
government costs. To be effective, land acquisition processes must uphold due 
process while remaining flexible, transparent, and equitable.
Despite the availability of various acquisition modes under Republic Act No. 
10752, many government agencies continue to rely heavily on expropriation. 
According to data from the Department of Public Works and Highways (DPWH), 
90 percent of ROW acquisitions have been carried out through expropriation, while


only 10 percent have been completed through negotiated sales.1 This approach, 
while legally valid, often leads to prolonged litigation and resistance from 
landowners who feel inadequately compensated or burdened by procedural 
requirements. Even negotiated sales, donations, and other conventional methods 
frequently encounter challenges, such as valuation disagreements, unclear 
ownership, or delays in documentation. These issues result in project delays, 
higher implementation costs, and inefficient public spending.
This bill seeks to establish a comprehensive and responsive legal framework 
for the acquisition of land for public purposes. It aims to provide government 
agencies with a broader set of lawful and practical instruments to secure 
possession and access to land—without compromising the constitutional rights of 
property owners or delaying the implementation of critical national and local 
development projects.
To this end, the bill institutionalizes alternative modes of acquisition such as 
usufruct, conditional sale, contract to sell, and long-term lease, complemented by 
mechanisms for upfront compensation, escrow arrangements, and flexible 
settlement options. These tools are designed to promote transparency, fairness, 
and voluntariness, while ensuring the government's ability to act efficiently in 
pursuit of public purpose.
In recognition of the fact that landowners voluntarily contribute their 
property—often their primary source of livelihood—for a higher socio-economic 
purpose, this bill also provides for meaningful benefits beyond just compensation. 
These include the waiver of national taxes directly related to the transaction and 
financial assistance to reduce disruption in their daily lives. Such measures 
acknowledge the economic loss and inconvenience borne by affected individuals, 
while reinforcing a culture of trust, equity, and shared responsibility between the 
State and its citizens.
1 Page 2.1-1 DPWH Bight_of Way Acquisition Manual (December 20J7)


By enacting this measure, the State will be better equipped to conduct 
equitable, streamlined, and cooperative land transactions, reduce legal disputes, 
and accelerate the timely delivery of infrastructure, environmental, and social 
development projects.
In view of the foregoing, the urgent passage of this bill is sought.
LOREN LEGARDA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
tljr iv.-rrlarp
25 AUG “4 PI :16
SENATE
796
S. No.
RfiCEiV£r> 3V
Introduced by Senator Loren Legarda
AN ACT
ESTABLISHING A COMPREHENSIVE FRAMEWORK FOR THE ACQUISITION 
OF LAND FOR PUBLIC PURPOSES, INCLUDING INFRASTRUCTURE 
DEVELOPMENT, THROUGH MONETARY AND NON-MONETARY MEANS, 
PROVIDING FLEXIBLE MODES OF POSSESSION AND COMPENSATION, AND 
APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. — This Act shall be known as the "Alternative Land
2 
Acquisition for Pubiic Use Act."
3 
Sec. 2. Declaration of Policy. — It is hereby declared the policy of the State to
4 
promote the timely, efficient, and equitabie acquisition of private and public lands
5 
necessary for public use. Such use shall include, but not be limited to, infrastructure
6 
deveiopment, environmental protection and conservation, delivery of social services,
7 
national defense, and other activities essentiai to national development and public
8 
welfare.
9 
The State shall uphold the constitutional guarantee of due process and just
10 
compensation, as enshrined in Article III, Section 9 of the 1987 Constitution, which
11 
provides that no person shaii be deprived of property without due process of law, nor
12 
shall private property be taken for public use without just compensation. Nothing in
13 
this Act shall be construed to diminish, impair, or derogate from such fundamental
14 
rights.


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To this end, the government shall encourage voluntary, negotiated, and
2 
mutually beneficial modes of acquisition, and shall adopt measures to prevent
3 
unnecessary delays arising from legal, administrative, or procedural barriers. All
4 
acquisitions undertaken pursuant to this Act shall be governed by the principles of
5 
transparency, fairness, accountability, and good faith, and shall be exercised strictly
6 
in furtherance of legitimate public purposes.
7 
Sec. 3. Scope and Application. — This Act shall apply to all acquisitions of land,
8 
including ownership and possessory rights, by the national government, local
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government units (LGUs), government-owned or controlled corporations (GOCCs),
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and government instrumentalities for public purposes.
11 
Sec. 4. Definition of Terms. — For the purpose of this Act, the following terms
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shall be defined as follows:
13 
(a) Just Compensation refers to the full and fair monetary or non-monetary
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equivalent of the property acquired for public use. It shall include the
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assessed value of the land, structures, crops, trees, and improvements
16 
thereon, as well as any consequential damages, relocation, or
17 
disturbance costs incurred by the property owner. Just compensation
18 
may also be satisfied through alternative modes such as land swaps or
19 
other legally recognized forms of property exchange;
20 
(b) Land Swaps refer to the transfer of ownership involving private land and
21 
government-owned property of equivalent value, viability, and
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suitability. This shall include, but not be limited to, foreclosed assets,
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idle parcels, or real properties held in trust or inventory by national
24 
government agencies, GOCCs, or local government units;
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(c) Contracts Granting Immediate Possession refer to legally binding
26 
agreements between the government and the landowner, such as
27 
usufruct, long-term lease, conditional sale, or contract to sell, which
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authorize the government to take possession, access, and use of the
29 
subject property for a defined public purpose, prior to the completion of
30 
the formal transfer of ownership; and
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(d) Disruption, Inconvenience, or Displacement refers to any disturbance,
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hindrance, or forced alteration in the use, access, or occupancy of land
5


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or real property as a result of government land acquisition, possession,
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or project implementation. This includes loss of income or access, partial
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or full vacating of premises, or other non-physical but material impacts
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that interfere with the enjoyment, use, or function of the property.
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Sec. 5. Modes of Acquisition. — The government, including its departments,
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agencies, instrumentalities, GOCCs, and LGUs, may acquire private or public land,
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including rights and interests therein, for public purposes through any of the following
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modes:
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(a) Donation - The voluntary and uncompensated transfer of ownership or
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use of land or real property from a private or public entity to the
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government, duly executed through an instrument of donation and
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accepted by the implementing agency;
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(b) Negotiated Sale- A consensual agreement between the government and
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the property owner for the purchase of land or real property at a
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mutually agreed price, supported by sufficient documentation and
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valuation reports;
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(c) Expropriation - The compulsory acquisition of private property through
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judicial proceedings in accordance with the power of eminent domain,
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subject to the payment of just compensation as determined by the court;
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(d) Contracts Granting Immediate Possession - Agreements such as
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usufruct, conditional sale, contract to sell, long-term lease, or other
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contractual arrangements that allow the government to take immediate
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possession, access, and use of the land for a defined public purpose,
24 
prior to or pending the completion of ownership transfer, subject to
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conditions set forth in this Act;
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(e) Land Swaps- The exchange of privately owned land with government-
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held properties of equivalent value and suitability, including idle,
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reserved, or foreclosed lands held by national government agencies,
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GOCCs, or LGUs, as a form of non-monetary just compensation. The
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implementing agency shall bear the primary responsibility of identifying,
31 
disclosing, and offering eligible government properties for land swap.


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subject to the principles of transparency, fairness, and informed consent
2 
of the landowner.
3 
A centralized repository of government properties eligible for land
4 
swap shall be established and maintained in accordance with rules to be
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issued by the Department of Economy, Planning, and Development
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(DEPDev) through its Infrastructure Committee. The Implementing
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Rules and Regulations (IRR) shall prescribe the procedures, disclosure
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requirements, valuation standards, and publication protocols governing
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such land swap arrangements; and
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(f) Other Legally Permissible Means - Such other modes of land acquisition
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as may be expressly authorized by existing laws, administrative
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issuances, or jurisprudence, excluding administrative forfeiture or other
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coercive mechanisms not intended for public use acquisition. This may
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include, but is not limited to, tax delinquency sales, voluntary surrender,
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land banking, or reversion to the State, provided such means are
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consistent with constitutional guarantees of due process and just
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compensation.
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For purposes of this Act, land acquisition shall be construed to include the
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procurement of rights over both surface and subsurface areas of land, including air
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rights, provided that the intended use is for a clearly defined public purpose and
21 
complies with constitutional and statutory requirements.
22 
In all modes of land acquisition under this Act, the landowner shall have the
23 
right to submit a counteroffer proposing an alternative mode or set of terms for
24 
securing possession or transferring ownership of the property, provided that the
25 
alternative arrangement remains consistent with the defined public purpose and
26 
conforms with applicable laws and regulations.
27 
Such counteroffers may include alternative contractual arrangements,
28 
compensation mechanisms, or timing of transfer, among others. The implementing
29 
agency shall give due consideration to these proposals in good faith, and shall assess
30 
their viability based on legal, technical, and public interest criteria.


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The IRR shall define the procedures and timelines for the submission,
2 
evaluation, and resolution of landowner-initiated counteroffers, ensuring that the
3 
negotiation process remains transparent, responsive, and efficient.
4 
Sec. 6. Contracts Granting Immediate Government Possession. — The
5 
government, through its implementing agencies, may enter into legally binding
6 
agreements with landowners that allow the State to immediately possess, access, and
7 
utilize real property for a defined public purpose, even prior to the completion of the
8 
formal transfer of ownership, subject to the following conditions:
9 
(a) The contract shall expressly authorize the government's possession, use,
10 
and improvement of the property for a period not exceeding fifty (50)
11 
years, unless earlier terminated or extended as may be provided by law
12 
or mutual agreement;
13 
(b)The government shall pay the landowner, upon execution of the
14 
contract, an amount equivalent to at least eighty percent (80%) of the
15 
negotiated purchase price of the affected land, inclusive of the value of
16 
structures, crops, trees, and other improvements thereon; and
17 
(c)The transfer of ownership of the property to the Republic of the
18 
Philippines shall take effect only upon the submission by the landowner
19 
of complete legal documentation, including but not limited to the
20 
certificate of title, updated tax declarations, and all other required
21 
clearances. The remaining balance of the negotiated price shall be
22 
released upon completion of such documentation and execution of the
23 
corresponding deed of absolute sale or other appropriate instrument of
24 
conveyance.
25 
Sec. 7. Flexible Compensation Mechanisms. — In cases where legal ownership
26 
of the land or real property is unsettled due to ongoing succession proceedings,
27 
unresolved inheritance issues, or the absence of a judicial or extrajudicial
28 
determination of rightful ownership, the implementing agency may, for purposes of
29 
ensuring timely government possession and compliance with the requirement of just
30 
compensation, adopt any of the following mechanisms:
31 
(a) Escrow Deposit - The implementing agency may deposit the initial
32 
compensation amount in an interest-bearing escrow account with a
8


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government financial institution, subject to the condition that such funds
2 
shall be released only to the parties adjudged or declared as rightful
3 
claimants through final and executory judicial or extrajudicial settlement
4 
of the estate;
5 
(b) Judicial Administration-The implementing agency may file an appropriate
6 
petition before a court of competent jurisdiction for the appointment of an
7 
administrator or executor to receive and manage the compensation on
8 
behalf of the estate, pending the final settlement of ownership or
9 
succession claims;
10 
(c) Proportional Distribution Agreement- In cases where the known heirs, co-
11 
owners, or claimants are identifiable and willing, the implementing agency
12 
may enter into a written agreement with said parties providing for the
13 
proportional and conditional distribution of the compensation based on
14 
equitable shares or interim arrangements, subject to applicable laws on
15 
succession and co-ownership; and
16 
(d) Other Legally Permissible Mechanisms - The implementing agency may
17 
utilize such other mechanisms as may be authorized under existing laws,
18 
rules, or jurisprudence that allow the conditional deposit or payment of
19 
just compensation, provided that these do not violate the rights of the
20 
lawful property owners and are subject to post-validation or audit.
21 
Sec. 8. Benefits to Landowners, — In recognition of the financial, logistical, and
22 
administrative burdens associated with the relocation or transfer of land ownership for
23 
public purposes, this Section provides for additional compensation, tax relief, and
24 
transaction support to landowners affected by government land acquisition.
25 
(a) Landowners who are required to vacate or relocate as a direct result of land
26 
acquisition under this Act shall be entitled to a one-time, lump-sum
27 
relocation assistance, which shall cover:
28 
1. Transfer Costs - Reasonable expenses directly incurred in the
29 
process of relocation, including but not limited to moving and
30 
hauling costs, legal and notarial fees, documentary preparation,
31 
and administrative charges; and


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2. Relocation Support - Temporary housing assistance, rental 
subsidies, or other equivalent forms of support as may be 
determined by the implementing agency, in consultation with the 
Department of Human Settlements and Urban Development 
(DHSUD) or other relevant agencies.
(b) Landowners who experience disruption, inconvenience, or displacement as 
a result of government land acquisition shall be entitled to additional 
compensation for such disturbance. The combined total of the amounts 
granted under subsections (a) and (b) shall not exceed ten percent (10%) 
of the total negotiated or court-determined just compensation for the 
affected property.
(c) Landowners who enter into a negotiated sale, donation, land swap, or any 
other lawful contractual arrangement granting the government immediate 
possession or ownership shall be entitled to the full condonation of all 
national tax liabilities directly arising from or related to the transfer of the 
subject property to the government.
The condonation shall cover the principal amounts of capital gains 
tax, estate tax, donor's tax, value-added tax (if applicable), including all 
associated surcharges, interest, and penalties, whether incurred prior to or 
during the course of the transaction.
Real property tax (RPT) liabilities and arrears shall remain the 
responsibility of the landowner and shall not be subject to condonation 
under this Act.
(d) The implementing agency, or in the case of a public-private partnership, 
the private project proponent, shall be responsible for the payment of all 
lawful charges necessary to complete the transfer of title or registration of 
contractual rights in favor of the government. These charges include, but 
are not limited to, documentary stamp tax, transfer tax, registration fees, 
and notarial fees.
The specific guidelines for the computation, release, and 
administration of the foregoing benefits shall be prescribed in the 
Implementing Rules and Regulations (IRR) of this Act.
10


1 
Sec. 9. Possession of Subsurface Areas. - For government infrastructure
2 
projects requiring subsurface installations such as tunnels, pipelines, floodways, or
3 
utility corridors, the government or its authorized representatives shall have the right
4 
to access and use subsurface portions of land, provided such access occurs at a depth
5 
of at least twenty-five (25) meters below the natural surface.
6 
This access shall not be deemed to impair the right of the surface owner,
7 
provided that no material damage or disturbance is caused to surface use. In cases
8 
where such subsurface works result in structural damage or loss of use, the property
9 
owner shall be entitled to appropriate compensation, as determined by the
10 
implementing agency in accordance with existing laws.
11 
Sec. 10. Applicability to Ancestral Domains and Agrarian Reform Lands. -
12 
Nothing in this Act shall be construed to authorize or substitute for the processes and
13 
requirements governing the acquisition or transfer of ancestral domains or lands
14 
covered by agrarian reform laws.
15 
The acquisition of such lands shall be subject to the provisions of Republic Act No.
16 
8371 or the "Indigenous Peoples' Rights Act of 1997" (IPRA), Republic Act No. 6657
17 
or the "Comprehensive Agrarian Reform Law" (CARL), and other relevant laws. In
18 
particular:
19 
1. For ancestral domains and lands of Indigenous Cultural
20 
Communities/Indigenous Peoples (ICCs/IPs), the Free and Prior
21 
Informed Consent (FPIC) of the affected community shall be secured in
22 
accordance with NCIP guidelines.
23 
2. For agrarian reform lands and lands covered by Certificates of Land
24 
Ownership Award (CLOAs), appropriate clearance from the Department
25 
of Agrarian Reform (DAR) shall be obtained before acquisition.
26 
Sec. 11. Dispute Resolution Mechanism. - To ensure efficient and non-
27 
adversarial resolution of disputes arising from land acquisition under this Act, the
28 
Implementing Rules and Regulations (IRR) shall establish an administrative grievance
29 
mechanism accessible to affected landowners, heirs, or other stakeholders. Where
30 
appropriate, disputes may be referred to the Office for Alternative Dispute Resolution
31 
(OADR) or to accredited mediators, in accordance with Republic Act No. 9285 or the
32 
"Alternative Dispute Resolution Act of 2004."
11


1 
Sec. 12. Post-Acquisition Monitoring and Audit - To uphold transparency and
2 
accountability, the Commission on Audit (COA) shall have the authority to conduct
3 
random or targeted compliance reviews and audits of land acquisitions made under
4 
this Act, including the use of compensation mechanisms, adherence to procedures,
5 
and documentation of just compensation.
6 
The Department of Economy, Planning, and Development (DEPDev), through its
7 
Infrastructure Committee, may also undertake periodic evaluations of the
8 
implementation of this Act and publish summary reports for public disclosure.
9 
Sec. 13. Authority to Promuigate Ruies and Guideiines. - Within ninety (90)
10 
days from the effectivity of this Act, the Department of Justice (DOJ), in coordination
11 
with the DEPDev through its Infrastructure Committee, the Department of Public
12 
Works and Highways (DPWH), and other relevant agencies, shall promulgate the
13 
necessary rules and regulations for the effective implementation of this Act.
14 
The IRR shall include standard contract templates, valuation guidelines,
15 
procedures for escrow and land swaps, and grievance redress mechanisms. Drafting
16 
of the IRR shall involve public consultation with representatives from civil society,
17 
landowner associations, LGUs, and sectoral stakeholders.
18 
Within the same ninety (90)-day period, the DOF, through the BIR, shall issue
19 
the specific rules and regulations governing the implementation of the condonation of
20 
tax penalties, surcharges, or interest authorized under this Act. Such rules shall define
21 
the procedures, documentation requirements, and eligibility criteria for landowners to
22 
avail of the condonation, in accordance with applicable tax laws and regulations.
23 
Sec. 14. Technicai Support and Capacity-Buiiding. - The DEPDev, in
24 
coordination with the DOJ and the DPWH, shall lead the development of standardized
25 
model contracts, operational guidelines, and training programs to assist implementing
26 
agencies in the use of alternative land acquisition mechanisms under this Act.
27 
A technical support unit may be created within DEPDev's Infrastructure
28 
Committee to provide legal, financial, and operational advisory services to requesting
29 
agencies and LGUs. Funds for capacity-building, legal review, and stakeholder
30 
engagement shall be included in the annual budgets of concerned agencies and may
31 
be supported through official development assistance (ODA) or public-private
32 
partnership (PPP) modalities.
12


1 
Sec. 
15. Appropriations. - 
Such sums as may be necessary for the
2 
implementation of this Act shall be included in the annual General Appropriations Act.
3 
Sec. 
16. Separabiiity Clause. - If any provision of this Act is declared
4 
unconstitutional, the remainder shall remain in full force and effect.
5 
Sec. 
17. Repealing Clause. 
- All laws, decrees, 
orders, and issuances
6 
inconsistent with this Act are hereby repealed or modified accordingly. Republic Act
7 
No. 10752 is hereby superseded insofar as it is inconsistent with the provisions of this
8 
Act.
9 
Sec. 
18. Effectivity. - This Act shall take effect 
fifteen (15) days after
10 
publication in the Official Gazette or in at least two (2) national newspapers of general
11 
circulation.
Approved,
13