HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

822

House Bill No.

Introduced by Rep. AURELIO "DONG" D. GONZALES, JR.

EXPLANATORY NOTE

‘Timely completion of Infrastructure Projects is important. Delay in the
implementation of construction, for most part, adds in the congestion of traffic, which
the Government sought to address. This delay does not only hamper national growth
and development but exposes the government to unnecessary expenses which can be
avoided, otherwise prevented.

Construction laws, therefore, are needed to be responsive for the prompt
accomplishment of Infrastructure Projects throughout the country.

‘The enactment of Republic Act (RA) No. 10752 was expected to address most, if not
all right-of-way concerns for timely completion/implementation of government's
infrastructure projects. The law supposed to cut-short the process of acquisition by
introducing major changes from RA 8974. For instance, the present law allows
payment of current market value, rather than zonal value, as determined by a
Government Financial Institution or an independent appraiser, duly accredited by the
Bangko Sentral ng Pilipinas (BSP) or a professional association of appraisers
recognized by the BSP, procured by the implementing agency through a competitive
bidding.

While the purpose of RA 10752 is novel, some provisions thereof are not responsive
to the need of the Implementing Agency for the immediate delivery of construction
site. After the law was approved on March 7, 2016, a slow progress in ROW
acquisition was presently experienced due to the difficult compliance of the strict
requirements of the law.

{As stated, the engagement of appraisal services requires the observance of RA 9184.
Under the said law, the recommended earliest possible time for procurement of


consulting services is at least thirty six (36) days. The period required by the
procurement law is seen to be a additional burden to the ROW acquisition which must
be immediately rectified at the early stage of the effectivity of RA 10752, not to
mention other flaws and issues arising from the new law such as appraisal results
lower than zonal value based from the new standards set by the new amendment,
which do not serve the purpose thereof.

Compensation of owners of public utilities (electric, water, telephone, etc.) is also
sought to be resolved by the author, considering that its relocation is a primary ROW
problem causing undue delay in the implementation of infrastructure projects.

Since ROW acquisition is crucial for timely completion of infrastructure projects,
there is a need to amend RA 10752 to carry the government's need to fully acquire
project site within the shortest possible time.

In view thereof, the passage of this bill is earnestly requested.



REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

teenth Congress
First Regular Session

House Bill No. Be

Introduced by Rep. AURELIO "DONG" D. GONZALES, JR.

AN ACT AMENDING, AMONG OTHERS, SECTIONS 4, 5, AND 6 OF
REPUBLIC ACT NO. 10752 OTHERWISE KNOWN AS “THE RIGHT-OF-
WAY ACT

Section 1. The provisions of Section 4 (a) and (b) of Republic Act NO. 10752
relative to compensation of lands registered under the Commonwealth Act No. 141
are hereafter repealed and Section 29, and Chapters XI and XII of said
Commonwealth Act is hereby reinstated.

Section 2. Section 5(a) is hereby amended and
provision for independent appraiser as stated as follows:

all read by omitting the

SEC. 5, Rules on Negotiated Sale. — The implementing agency
may offer to acquire, through negotiate sale, the right-of-way site
or location for a national government infrastructure project, under
the following rules.

(a) The implementing agency shall offer to the property owner
concerned, as compensation price, the sum of

(1) The current market value of the land or its zonal valuation
whichever is higher,

(2) The replacement cost of structures and improvements
therein; and

(3) The current market value of erops and trees therein.


To determine the appropriate price offer, the implementing agency
may engage the services of a government financial institution with
adequate experience in property appraisal.

If the property owner does not accept the price offer, the
implementing agency shall initiate expropriation proceedings
pursuant to Section 6 hereof.

The property owner is given thirty (30) days to decide whether or
not to accept the offer as payment for his property. Upon refusal or
failure of the property owner to accept such offer or fails anchor
refuses to submit the documents necessary for payments, the
implementing agency shall immediately initiate expropriation
proceedings as provided in Section 6 herein.

XXX XXX XXX

(c) With regard to the taxes and fees of the transfer of title of the
property to the Republic of the Philippines through negotiates sale,
the implementing agency shall pay, for the account of the seller,
documentary stamp tax, transfer tax and registration fees, while the
‘owner shail pay any unpaid real property tax. The seller or owner
of the property shall be exempted from payment of Capital
G Tax as to the affected portion of the property subject of
acquisition.

XXX XXX XXX

Section 3. Section 6 (a){2) and (a)(3) providing the replacement cost of the
improvements and market value of crops and trees as jurisdictional requirement for
filing of expropriation case are hereby repealed accordingly.

Section 4. Compensation of Utilities Affected by Right-of-Way Acquisition
Companies shall not be entitled to recover compensation in the event of
relocation of Electric, Water and Communication Facilities including cable lines and
similar public utilities affected by the acquisition of right-of-way unless otherwise
provided by law.

Section 5. Implementing Rules and Regulations (IRR) - The Committee for the
issuance of Implementing Rules and Regulations as stated in Section 13 of RA 10752
is hereby directed to amend the IRR within thirty (30) days upon the effectivity hereof
to incorporate the changes stated in this Act.

Section 6. Separability Clause — The provisions of this Act are hereby declared to
be separable and if any clause, sentence, provision or section of this Act or its
application thereof to any person or circumstance should, for any reason, be held
invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the
other provisions or application of this Act which can be given force and effect.


Section 7. Repealing Clause — All laws, decress, charters, executive orders,
administrative orders, proclamations, rules and regulations, or parts thereof insofar as
they are inconsistent with the provision of this Act are hereby repealed or modified
accordingly.

Section 8. Effectivity — This Act shall take effect fifteen (15) days after
completion 0 publication in the Official Gazette or in a newspaper of general
circulation.

Approved.