Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HousE BILLNo,_2994

Introduced by HON. RONALD M. COSALAN and HON. JESULITO A. MANALO

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, classrooms, and public markets among others.

The acquisition of property needed for these projects, however, often entails a
ong and tedious process, which taxes both private land owners and the State. As the
law stands, there some more burdens imposed upon private land owners that
discourage them from cooperating with the Government in the implementation of its
infrastructure projects. Complications worsen when the registered land owner could
not be located or identified. As a result, many important 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, equitably, and with
due consideration for private rights, there is an urgent need to amend 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. Hence, this bill, which addresses the above-mentioned matters.

Considering the crucial nature of government infrastructure to the public
interest, the approval of this bill is earnestly urged.

| RONALD M. COSALAN
sentative
One District, Benguet Province (CAR)



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO,__ 239 4

Introduced by HON. RONALD M. COSALAN,

AN ACT 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, APPROPRIATING
FUNDS THEREFOR AND FOR OTHER PURPOSES

Be it enacted by te Senate and the House of Representatives of the Philippines in
Congress assembled:

Section 1. Declaration of Policy. - Whil
the State, Article Ill, Section 9 of the Constitution limits said power as it 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 government infrastr are promptly paid just compensation
without compromising the ex; ion of Right-of-Way. (a)

Section 2, National Government Projects. - The term “national government
projects” shall refer to all national government infrastructure, engineering works and
service contracts, including projects undertaken by government-owned and
controlled corporations, all projects covered by Republic Act No. 6957, as amended
by Republic Act No. 7718, otherwise known as Build-Operate-and-Transfer Law, and
other related and necessary activities, such as site acquisition, supply and/or
installation of equipment and materials, implementation, construction, completion
operation, maintenance, improvement, repair and rehabilitation, regardless of the
source of funding.

Section 3. Modes of Acquiring Real Property. - The government may acquire real
property needed as right-of-way, site or location for any national government
infrastructure project through donation, negotiated sale, expropriation or any other
mode of acquisition as provided by law.

Financial assistance may also be given to owners of lands acquired under
Commonwealth Act No. 141, as amended, for the area of portion subject to the
reservation under Section 112 thereof in such amounts as may be determined by the
implementing agency (IA)/instrumentality concerned, in consultation with the


House Bill No. p.2.

Commission on Audit and the assessor's office concerned pursuant to Section 18 of
Executive Order No. 1035, (a)

Section 4. Guidelines on Negotiated Sale. - The implementing agency may offer to
acquire a property through a negotiated sale under the following guidelines:

(a) The negotiated offer price, net of taxes relative to the transfer, for the land
shall be equivalent to the average market value by Government Financial
Institution/s (GFI),

The Implementing Agency shall offer the replacement cost, net of taxes
relative to the transfer, for structures, trees, crops, and other improvements
guided by the Rules to be prepared pursuant to Section 6, hereof

With regards to the taxes relative to the transfer of ttle, the IA will pay the
clocumentary stamp tax, transfer tax and registration fees while the property
owner shall pay the capital gains tax and any unpaid real property tax.

The property owner may request for the IA to remit to the BIR the amount
corresponding to the capital gains tax and/or any unpaid real property tax,
subject to deduction from the amount of negotiated offer price, provided
however, that the said amount is not more than the negotiated offer price.

(b) The property owner and the implementing Agency shall execute a Deed of
Absolute Sale. The property owner shall submit to the Implementing Agency
the transfer certificate of title, tax declaration, real property tax certificate, and
other documents necessary to transfer title prior to the execution of the Deed
of Sale. The Implementing Agency shall cause the annotation of the Deed of
Absolute Sale on the transfer certificate of title. Payment of 50% of the
negotiated offer price, net of taxes relative to the transfer, for the land and all
the improvements thereon shall made, subject however to the submittal of
complete documents as enumerated above.

(©) The implementing Agency shall pay the remaining 50% of the negotiated
offer price, net of taxes, to the property owner after the transfer of title in the
name of the Republic.

(4) In case the owner rejects either or both of the above offers of the government
for a negotiate purchase, the Implementing Agency may initiate
expropriation proceedings pursuant to Section 5, hereof. (6a)

Section 5. Guidelines for Expropriation Proceedings. - Whenever it is necessary to
acquire real property for the right-of-way, site or location for any national
Bovernment infrastructure project through expropriation, the appropriate
implementing agency, through the Office of the Solicitor General, the Office of the
Government Corporate Counsel, or their deputized legal counsel, shall initiate the
expropriation proceedings before the proper court under the following guidelines:

(@) Upon the filing of the complaint or at anytime thereafter, and after due notice
to the defendant, the implementing agency shall immediately pay the owner


House Bill No. p.3.

of the property by depositing to the court the amount equivalent to the sum
of (1) one hundred percent (100%) of the value of the property based on the
current appropriate zonal valuation of the Bureau of Internal Revenue (BIR),
issued not more than three years prior to the filing of the expropriation
complaint; and (2) the value of the improvements and/or structures located
within the property.

Alter the deposit of said amount, the court shall within seven (7) working
days issue the writ of possession, pursuant to relevant provisions of Rule 67
of the Rules of Court. The court shall release the said amount to the owner
‘upon presentation of sufficient proofs of ownership;

In case the owner of the property cannot be found, unknown, or deceased in
cases where the estate has not been settled, after exerting due diligence, or
there are conflicting claims over the ownership of the property and
improvements and/or structures thereon, the amount equivalent to 100% of
the BIR zonal value of the property and the value of the improvements
and/or structures thereon shall be deposited with the court for the benefit of
the person to be adjudged in the same proceeding as entitled thereto. Upon
deposit of the said amount with the court, the Court shall within seven (7)
working days issue a writ of possessior

(b) In provinces, cities, municipalities and other areas where there is/are no land
classification, no zonal valuation and/or the zonal valuation is more than
three years, the City Municipal Assessor and the BIR, as the case may be, is
hereby mandated within the period of thirty (30) days from the date of
request of the implementing agency, the expropriation case, to come up with
a Declaration of Real Property and Improvement, and zonal valuation for the
said area;

(6) In case the completion of a government infrastructure project is of utmost
urgency and importance, and where there is/are no land classification, no
zonal valuation and/or the zonal valuation is more than three years, the
implementing Agency shall use the BIR zonal Value and land classification of
similar lands within the immediate vicinity. (4a)

Section 6. Valuation of Improvements and/or Structures. - The Department of
Public Works and Highways and other implementing agencies concerned, in
coordination with the local government units concerned in the acquisition of right-
of-way, site or location for any national government infrastructure project, are
hereby mandated to adopt within sixty (60) days upon approval of this Act, the
necessary implementing rules and regulations for the equitable valuation of the
improvements and/or structures on the land to be expropriated. (7)

Section 7. Ecological and Environmental Concerns, - In cases involving the
acquisition of rightof-way, site or location for any national government
infrastructure project, the implementing agency shall take into account the ecological
and environmental impact of the project. Before any national government project
could be undertaken, the agency shall consider environmental laws, land use
ordinances, and all pertinent provisions of Republic Act No. 7160, as amended,
otherwise known as the Local Government Code of 1991.


House Bill No. + P.4.

Section 8 Informal Settler Families Relocation. - The government through the
National Housing Authority, in coordination with the local government units and
implementing agencies concerned, shall establish and develop Informal Settler
Families (ISH) relocation sites, including the provision of adequate utilities and
services, in anticipation of ISF that have to be removed from the right-of-way or site
of future infrastructure projects. Whenever applicable, the concerned. local
government units shall provide and administer the relocation sites.

In case there is no ISF Relocation Site available and the completion of a government
infrastructure project is of utmost urgency and importance, and if the affected ISFs
are willing, the Implementing Agency may choose to provide the ISF financial
assistance in lieu of relocation site pursuant to Section 28 of Republic Act No. 7279,
otherwise known as the Urban Development and Housing Act of 1992,

In case the expropriated land is occupied by ISF who refused the offer of financial
assistance as provided above, the court shall issue the necessary “Writ of
Demolition” for the purpose of dismantling any and all structures found within the
subject property. The implementing agency shall take into account and observe
diligently the procedure provided for in Section 28 of the Republic Act No. 7279,
otherwise known as the Urban Development and Housing Act of 1992,

Funds for the relocation of the ISE, including but not limited to funds for the
relocation site, shall come from appropriations for the purpose under the General
Appropriations Act, as well as from appropriate infrastructure project funds for the
implementing agency concerned, (9a)

Section 9. Appropriations for Acquisitions of Right-of-Way, Site or Location for
Any National Government Infrastructure Project 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 any national government infrastructure project.

In cases of Public Private Partnership and Build-Operate-and-Transfer projects, the
project proponent may finance the costs, administrative or actual, necessary for the
acquisition of ROW. (10a)

Section 10. Sanctions. ~ Violation of any provision of this Act shall subject the
government official or employee concerned to appropriate administrative, civil
and/or criminal sanctions, including suspension and/or dismissal from the
government service and forfeiture benefits.

Section 11. Rules and Regulations. - Rules and Regulations. - A committee
composed of the Secretary of the Department of Public Works and Highways as
chairperson, the secretaries of the Department of Transportation "and
Communications, the Department of Justice, the Department of Budget and
Management, the Solicitor General, the Commissioner of the Bureau of Internal
Revenue, Administrator of the Land Registration Authority, Head of Bureau of Local
Government Finance, Representatives from Government Financial Institutions,
Representatives from the PPP Center, the Presidents of the leagues of provinces,
cities and municipalities, Representatives from the Private Sector involved in


House Bill No. ps.

PPP/BOT Projects as members shall prepare the necessary rules and regulations for
the proper implementation of this Act within sixty (60) days from its approval. (12a)

Section 12. Separability Clause. ~ If any provisions of this Act is declared
unconstitutional or invalid, other parts or provisions hereof not affected shall
continue to be in full force and effect.

Section 13. Repealing Clause. - All laws, decrees, orders, rules, regulations,
inconsistent with this Act are hereby repealed or amended accordingly.

Section 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation,

Approved,