SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
S.B.No. 
2447 
Introdnced by Senator TEOFISTO "TG" GUINGONA III 
AN ACT 
'14 
NOV -6 P 3 :53 
TO ENABLE GOVERNMENT INFRASTRUCTURE PROJECTS AND 
PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS BY AMENDING 
REPUBLIC ACT NO. 8974, OTHERWISE KNOWN AS AN ACT TO FACILITATE THE 
ACQUISITION OF RIGHT-OF WAY, SITES, OR LOCATION FOR NATIONAL 
GOVERNMENT INFRASTRUCTURE, APPROPRIATING FUNDS THEREFOR, AND 
. FOR OTHER PURPOSES. 
EXPLANATORY NOTE 
Government infrastructure projects are delayed or frustrated by expropriation laws and 
procedures tbat have, over the years, proven to be inhospitable to the timetables of project 
implementors. This contribntes to the delay in our socio-economic development and causes us to 
lose much-needed investments due to a lack of critical infrastructure like roads and public 
transportation facilities. The results cQuld not be clearer: Flooding, traffic congestion, poor 
public services and an overall deterioration of our quality of life. 
While the people demand quick and visible solutions to their everyday problems, they 
only hear complicated excuses. This is partly because of deliberate corrnption in goverrunent and 
partly becanse of a system that is slow, inefficient and unresponsive to real problems. 
In order to move forward with Philippines 2015 in an emerging ASEAN 2015, We need 
to upgrade ow' procedures by speeding them up without sacrificing transparency and 
accountability. By introdncing systematic improvements, we will be able to realize long-term 
plans and ensure that future projects arc not lost in a legal and procedural limbo. 
In view of the foregoing, the passage of this bill is earnestly so 
Senator 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 2447 
Introduced by Senator TEOFISTO "TG" GUINGONA III 
AN ACT 
'14 
NOV -6 P 3 :53 
TO ENABLE GOVERNMENT INFRASTRUCTURE PROJECTS AND 
PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS BY AMENDING 
REPUBLIC ACT NO. 8974, OTHERWISE KNOWN AS AN ACT TO FACILITATE THE 
ACQUISITION OF RIGHT-OF WAY, SITES, OR LOCATION FOR NATIONAl" 
GOVERNMENT INFRASTRUCTURE, APPROPRIATING FUNDS THEREFOR, AND 
FOR OTHER PURPOSES. 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Declaration of Policy.- Article III, Section 9 of the Constitution states that 
2 
private property shall not be taken for public use without compensation. Towards this end, the 
3 
State shall ensure that owners of real property acquired for national government infrastructure 
4 
projects are promptly paid just compensation, while providing for the expeditious acquisition of 
5 
the required right-of-way for the projects. 
6 
7 
SECTION 2. National Government Projects. - The term "national government projects" 
8 
shall refer to all national govenllnellt infrastrucrnre and its public service facilities. engineering 
9 
works and service contracts, including projects undertakcn by government-owned and -
10 
controlled corporations, all projects covered by Repnblic Act No. 6957, as amended by Republic 
11 
Act No. 7718, otherwise known as Build-Operate-and-Transfer Law, and other related and 
12 
necessary activities such as site acquisition, supply and/or installation of equipment and 
13 
materials, implementation, construction, completion, operation, maintenance, improvement, 
14 
repair and rehabilitation, regardlcss of the source of funding, subject to the provisions of the 
15 
local government code, local government units (LGU s) may also adopt the provisions of this act . 
16 
for use in the acquisition of right-of-way for local government infrastructure projects. 
17 
18 
SECTION 3. Modes of Acquiring Real Property. - The government may acquire real 
19 
property needed as right-or-way, site or location for any government infrastructure project 
20 
through donation, negotiated sale, expropriation or any other mode of acquisition as provided by 
2 


1 
law. Pursuant to the objectives in Section I hereof, expropnatlon shall be considered as a 
2 
preferential mode of acquiring real property needed as a right-of-way, site or location for any 
3 
govenuuent infrastructure project. 
4 
5 
In cases of lands granted thru Commonwealth Act 141 and its amendments, the Implementing 
6 
Agency shall: 
7 
8 
(a) Follow the other modes of acquisition under Section 3 if landowner is not original 
9 
patent holder and not a holder thru gratuitous title; or 
10 
11 
(b) Follow the provisions under Commonwealth Act 141 regarding acquisition of right-
12 
of-way on patent lands, if the landowner is the original patent holder or his 
13 
acquisition of said land from the original patent holder is through gratuitous title. 
14 
15 
The implementing agency shall utilize donation or similar mode of acquisition if the landowner 
16 
is a govemment-owned or controlled corporation. 
17 
18 
SECTION 4. Rules on Negotiated Sale. -
the implementing agency may offer to 
19 
acquire, through negotiated sale, the right-of-way, site or location for a national government 
20 
infrastructure project, under the following rules: 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
(a) The Implementing Agency shall make an offer only once to the property owner 
concemed, as compensation price, the sum of: 
i. The current market value of the land, as determined, pursuant to 
Section 6 hereof by: Ca) the implementing agency, (b) the provincial, 
city or municipal assessor's office, (c) a guvemment fmancing 
institution with adequate experience in property appraisal or (d) an 
independent property appraiser accredited by the Bangko Sentral ng 
Pilipinas (BSP) or a professional association of appraisers recognized 
by BSP to be procmed as mentioned in Section 4(a). All relevant 
agencies andlor associations shall, within 60 days from the approval of 
this act, prepare an appraisal andlor accreditation program in 
accordance with the provisions of this Act; 
i1. The replacement cost of structures and improvements therein as 
detennined by Section 5(a)(ii); and 
iii. The current market value of crops and trees therein. To determine the 
said price oIfer, the implementing agency may engage services of a 
Government Financing Tnstitution with adequate experience in 
property appraisal, or an independent property appraiser accredited by 
tbe Bangko Sentral ng Pilipioas (BSP) or professional association of 
appraisers recognized by BSP to be procured by the Implementing 
Agency under the provisions of Repuhlic Act No. 9184 and its 
implementing rules and regulations pertaining to consulting services if 
3 


1 
2 
3 
4 
5 
6 
7 
~ 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
the property owner does not accept this price offer, the Implementing 
Agency shall initiate expropriation proceedings pursuant to section 5, 
hereoL 
The property owner is given thirty (30) days within which he shall decide whether 
to accept the offer as payment for his property or not. Upon refusal of the property 
owner of such offer or if he fails and/or refuses to submit documents necessary for 
payment, the implementing agency shall immediately initiate an expropriation 
proceeding as provided in Section 5 herein, 
b. The above provision pertaining to Section 4(a)(ii) shall also apply to all 
owners of structures and improvements who do not have legally recognized 
rights to the land and who meet all of the following criteria: 
i. Must he a Filipino citizen. 
ii. Must not own any real property or any other housing facility, whether 
in an urban or rural area. 
111. Must not be a professional squatter or a member of a squatting 
syndicate, as defined in Republic Act no. 7279, otherwise known as 
the Urban Development and Housing Act, as amended. 
With regard to the taxes and fees relative to the transfer of title of the property to 
the republic through negotiated sale, the implementing agency shall pay, for the 
account of the seller, the capital gains tax, as well as the documentary stamp tax, 
transfer tax and registration fees while owner shall pay unpaid real property tax. 
The implementing agency shall remit to the local government unit the amount 
corresponding to any unpaid real property lax, subject to deduction of this amount 
from the total negotiated price, provided, however, that the said amount is not 
more than the negotiated price; 
c. If requested by the property owner, the implementing agency shall remit to the 
LGU concemed the amount corresponding to any unpaid real property tax, 
subject to the deduction of this amount from the total negotiated price. 
d. 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 transfer certificate of title, tax declaration, real 
property tax certificate, and other documents necessary to transfer the title to 
the Republic, the Implementing Agency shall cause the annotation of the deed 
of absolute sale on the transfer certificate of title. 
e. Upon execution of Deed of Sale, the Implementing Agency shall pay the 
property owner: 
4 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
i. Fifty percent (50%) of the negotiated price of the affected land, 
exclusive of taxes remitted to the LGU concerned under Section 4(d) 
above; and 
ii. Seventy percent (70%) of negotiated price of affected stlUctures, 
improvements, crops and trees, exclusive of real property tax in no. 5 
above. 
f. The Implementing Agency shall, at the times stated below, pay the property 
owner the remaining fifty percent (50%) of the negotiated price of the affected 
land, and thirty percent (30%) of the affected structures, improvements, crops 
and trees, exclusive of unpaid taxes remitted to the LGU concerned under 
Section 4(d) above, provided that the land is already completely cleared of 
structures/improvements, crops and trees: 
16 
i. At the time of the transfer of title in the name of republic, in cases 
17 
where the land is wholly affected or 
18 
19 
ii. At the time of the annotation of a deed of sale on the title, in cases 
20 
where the land is partially alfected. 
21 
22 
The provisions of Section 4(a) shall also apply to outstanding claims for right-of-
23 
way payments, except that the amount to he offered shall be the price at the time 
24 
of taking of the property, including legal interest until fully paid. 
25 
26 
SECTION 5. Guidelines for Expropriation Proceedings. - Whenever it is necessary to 
27 
acquire real property for the right-of-way, site or location for any national government 
28 
infrastructure tln'ongh expropriation, the appropriating implementing agency, through the Office 
29 
of the Solicitor General, the Office of the Government Corporate Counsel, or their deputized 
30 
government or private legal counsel, shall immediately initiate the expropriation proceedings 
31 
and/or enforcement of lien proceedings for lands covered by free or homestead patents pnrsuant 
32 
to Commonwealth Act 141 before the proper court under the following guidelines: 
33 
34 
(a) Upon the filing of the complaint or at any time thereafter, and after due notice to the 
35 
defendant, the implementing agency shall immediately deposit to the court in favor of the 
36 
owner the amount equivalent to the sum of: 
37 
38 
i. One hundred percent (100%) of the value of the land based on the cnrrent 
39 
relevant zonal valuation of the Bureau of Internal Rcvenue (BIR), issued 
40 
not more than three years prior to the filing of the expropriation complaint 
41 
subject to Section 5(c) below; 
42 
43 
ii. The replacement cost of structures and improvements therein as 
44 
determined pursuant to Section 4(a)(ii); and 
45 
46 
5 


1 
2 
3 
4 
5 
6 
7 
8 
iii. The current market value of crops and trees located within the property as 
determined by a government financial institution or an independent 
property appraiser to be selected as memioned in Section 4(a). 
For utility posts, pipes, wires and the like placed by ntility companies with government 
franchises, the costs of relocating them shall not be included in the cost determined 
herein. 
9 
If, within seven (7) days after the deposit to the court of the amount equivalent to the sum of 
10 
Section 5(a)(i) to 5(a)(iii), the court has not issued to the implementing agency a Writ of 
11 
Possession for the affected property, then the counsel of the implementing agency shall 
12 
immediately seek from the court the issuance of the Writ of Possession ex parte. No hearing 
13 
shall be required in the issuance of such Writ of Possession. The court shall issue the Writ of 
14 
Possession within fifteen (15) days from the filing of the complaint. 
15 
16 
In the enforcement of lien proceedings, the court shall immediately issue a Writ of Possession 
17 
similar to that granted in expropriation cases. 
18 
19 
The court shall release the said amount to the owner upon presentation of sufficient proofs of 
20 
ownership . 
. 21 
22 
(b) In case the owner cannot be found, unknown, or deceased in cases where the estate has 
23 
not been settled, after exerting due diligence, or there are conflicting claims over the 
24 
ownership of the property and improvements and/or structures thereon, the implementing 
25 
agency shall deposit the amount equivalent to the sum of Sections 5(a)(i) to 5(a)(iii) 
26 
above to the court for the benefit of the person to be adjudged in the same proceedings as 
27 
entitled thereto. 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
If, within seven (7) working days after the deposit to the court of the amount equivalent 
to the sum of sections 5(a)(i) to 5(a)(iii), the court has not issued to the implementing 
agency a Writ of Possession for the affected property, then the counsel of the 
implementing agency shaH immediately seek with the court the issuance of the Writ of 
Possession. 
The court shaH rejease the said amount to the person adjudged in the same expropriation 
proceeding as entitled thereto. 
38 
(c) In provinces, cities, municipalities and other areas where there is no land classification, 
39 
the city/municipal assessor is hereby mandated within the period of sixty (60) days from 
40 
date of Hling of expropriation case, to come up with the required land classification and 
41 
the corresponding declaration of real property and improvement for said area. Tn 
42 
provinces, cities, municipalities and other areas where there is no zonal valuation, andlor 
43 
where the zonal valuation is more than three years, the BIR is hereby mandated within 
44 
the period of sixty (60) days from the date of filing of the expropriation case, to come up 
45 
with a zonal valuation for said area, based on the land classification done by the city or 
46 
municipal assessor. 
6 


1 
(d) With reference to section 5(a)(i), ill case the completion of a government infrastructure is 
2 
of utmost urgency and importance, and there is no land classification or no existing zonal 
3 
valuation of the area concerned and/or the zonal valuation is more than three years, the 
, 4 
implementing agency shall use the EIR zonal value and land classification of similar 
5 
lands within the adjacent vicinity, as the basis for the valuation. 
6 
7 
(e) In any of the cases in Section 5(a), (b), (c), and (d) above upon its receipt of the Writ of 
8 
Possession issued by the court, the implementing agency may take possession of the 
9 
property and start the implementation of the project. 
10 
11 
(f) In the event that the owner of the property contests the implementing agency's proffered 
12 
value, the court shall determine the just compensation to be paid the owner within sixty 
13 
(60) days from the date of filing of the expropriation case when the decision of the court 
14 
becomes final and executory, the Implementing Agency shall pay the owner the 
, 15 
difference betwcen the amount already paid and the just compensation as determincd by 
16 
the cOUit. 
17 
18 
(g) With regard to the taxes and fees relative to the transfer of title of the property to the 
19 
republic through expropriation proceedings, the implementing agency shall pay the 
20 
documentary stamp tax, transfer tax and registration fees, while the owner shall pay the 
21 
capital gains tax and any unpaid real property tax. 
22 
23 
SECTION 6. Standards for the Assessment of the Value of the property subject to 
24 
Negotiated Sale and expropriation. - In order to facilitate the determination of just 
25 
compensation, the court may consider, among other well-established factors, the following 
26 
relevant standards: 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
(a) The classification and use for which the property is suited; 
(b) The developmental costs 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 compcnsation for the removal andlor demolition of certain 
improvement on the land and for the value of improvements thereon; 
(f) This size, shape or location, tax declaration and zonal valuation of the land; 
(g) The price of the land as manifested in the ocular findings, oral as well as documentary 
evidence pl'esented; and 
(h) Such facts and events as to enable the affected property owners to have sufficient 
funds to acqnire similarly-situated lands of approximate areas as those required from 
them by the government, and thereby rehabilitate themselves as early as possible. 
41 
SECTION 7. Ecological and Environmental Concems. -
In cases involving the 
42 
acquisition of right-of-way, site or location for any national government infrastructure project, 
43 
the implementing agency shall take into account the ecological and environmental impact of the 
44 
project. Before any national govemment project could be undertaken, the agency shall consider 
45 
environmental laws, land use ordinances, and all pertinent provisions of Republic Act No. 7160, 
46 
as amended, otherwise known as the Local Government Code of 1991. 
7 


1 
2 
SECTION 8. Relocation of Informal Settlers. - The government, through the Housing 
3 
and Urban Development Coordinating Council (HUDCC) and the National Housing Authority 
4 
(NHA), in coordination with the LGU and implementing agencies concerned, shall establish and 
5 
develop resettlement site for informal settlers, including the provision of adequate basic services 
6 
and community facilities, in anticipation of informal settlers fhat have to be removed from fhe 
7 
right-of-way or site of future infrastructure projects, pursnant to the proVisions of Republic Act 
8 
no. 7279. Whenever applicable, fhe implementing agency andlor concerned LGUs shall fund, 
9 
provide and administer the payment of financial assistance andlor resettlement sites. 
10 
11 
In case the expropriated land is occupied by informal settlers who are unable or refuse to 
12 
demolish their structures and other improvements therein despite the Writ of Possession issued 
13 
by the court under Section 5, the court shall issue the necessary Writ of Demolition for the 
14 
pnrpose of dismantling any and all structures found within the subject property. The 
15 
implementing agency shall take into account and observe diligently the procedure provided for in 
16 
'Sections 28 and 29 of Republie Aet No. 7279. 
17 
18 
SECTION 9. Appropriations for Acquisitions of Right-oj~way, Site or Location for 
19 
National Government Infrastructure Pro.iects in Advance of Pro.iect Implementation. - The 
2Q 
Government shall provide adequate appropriations that will allow the concerned implementing 
21 
agencies to acquire fhe required right-of-way, site or location for any national government 
22 
infrastructUl'e project in advance of project implementation. These appropriations shall cover the 
23 
funds needed to cover fhe following expenses for activities directly related to right-of-way 
24 
acquisition for the projects as provided in this act; 
25 
26 
(a) Cost of parcellary surveys and appraisal of properties affected by the projects. 
n 
(b) Cost of development and implementation of resettlement projects covered by fhis act, 
28 
including planning, social preparation, and other activities under the resettlement 
29 
action plan. 
30 
(c) Related expenses of fhe Implementing Agency, including capital gains tax in the case 
31 
of negotiated sale under Section 4, documentary stamp' tax, transfer tax and 
32 
registration fecs for the transfer of titles, and ofher relevant administrative expenses 
33 
for right-of-way management. 
34 
35 
In Public-Private PUl'tnership (PPP) projects, fhe modalities of which are defined in Republic Act 
36 
7718, the Implementing Agency may, as part of the contract tenTIS and conditinns require the 
37 
project proponent to (a) advance fhe funds covering fhe cost of fhe right-of-way which shall be 
38 
reimbursed later by fhe Implementing Agency or (b) finance the right of way cost which shall be 
39 
recovered partly or fully by the proponent from the tolls, fees, or tariffs to be charged to the users 
40 
of the completed project. 
4~ 
42 
SECTION 10. Entry into Private Lands for Subsuiface or Subterranean Works. -
43 
Whenever necessary for a government infrastructure and development project to construct or 
44 
install underground works like railroads or tunnels in the subsurface or subterranean portion of 
45 
lands owned, occupied or leased by other persons, fhe government or any of its authorized 
46 
representatives may not be prevented from entering into the subsurface or subterranean portions 
8 


1 
of such private Jands by the surface owners or occupants if such entry is made more than fifteen 
2 
(15) meters from the surface. 
3 
4 
SECTION 11. Regulation of Developments within Declared Right-(~f-way. - upon the 
5 
approval of an infrastructure project by the head of the implementing agency concerned. with 
6 
funding authorized in the general appropriations act and with defined right-of-way, no National 
7 
Government Agency or LGU shall, within two years from date of notice of taking, allow any 
8 
development or construction, or issue any building, construction development or husiness permit, 
9 
which is contrary to the approved plans and purposes of the project, within the said right-of-way, 
'10 
unless explicitly authorized by the head of the Implementing Agency for jnstifiable reasons. 
11 
12 
SECTION 12. Sanctions. - Violation of this act shall subject the government official or 
13 
employee concerned to appropriate administrative, civil and/or criminal sanctions, including 
14 
suspension and/or dismissal from the government service and forfeiture benefits. 
15 
16 
SECTION 13. Rules and Regulations. - A committee composed of the Secretary of the 
17 
Department of Public Works and Highways as Chairperson, and Secretaries of the Department of 
18 
Transportation and Communications, the Department of Energy, the Department of Justice, the 
19 
Department of Budget and Management, the National Economic and Development Authority, 
20 
the Chairman of the Housing and Urban Development Coordinating Council, and other 
21 
concerned entities as determined by the committee as members, shall prepare, in consultation 
22 
with key stakeholders the necessary rules and regulations for the proper implementation of this 
23 
act within sixty (60) days from its approval, 
21\ 
25 
SECTION 14. Transitory Clause. - The provisions of this act shall apply to all right-ot~ 
26 
way transactions, except ongoing transactions which, as of the effectivity of this act, have 
27 
already reached a written agreement as to tl,e price between the implementing agency and the 
28 
property owner. 
29 
30 
SECTION 15. Separability Clause. - If any provlSlon of this Act is declared 
31 
unconstitutional or invalid, other parts or provisions hereof not affected thereby shall continue to 
32 
be in full force and effect. 
33 
34 
SECTION 16. Repealing Clause. - All laws, decrees, executive orders, proclamations, 
35 
mles and regulations and other issuances or parts thereof which are inconsistent with the 
36 
provisions of this Act are hereby repealed or modified accordingly. 
37 
38 
SECTION 17. E.lfectivity Clause. - This Act shall take effect fifteen (15) days following 
39 
its publication in at least two (2) newspapers of general circulation. 
40 
41 
Approved. 
9