r 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B.No. 2180 
) 
) 
) 
Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
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'14 
MAR 31 
P4:04 
REVITALIZING THE PROCEDURE FOR ACQUISITION OF RIGHT OF WAY, SITE 
OR LOCATION FOR NATIONAL GOVERNMENT INFRASTRUCTURE 
PROJECTS, THEREBY REPEALING FOR SUCH 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" AND APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE 
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 long and 
tedious process. 
There is a need to revamp 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" to facilitate the acquisition of properties necessary for the 
completion of infrastructure projects. 
Provisions are also needed to ensure the 
protection and just compensation of property owners. Likewise, the protection and 
humane relocation of informal settlers that may be present in properties identified for 
infrastructure projects should be provided for. 
The immediate passage of this bill is earnestly sought. 
v.c.L) 
MANUEL "LITO" M. LAPID 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
.s~l'Iut l' 
(@u." "f Ill' ~""br~ 
First Regular Session 
'14 
MAR 31 
P 4 :04 
, 
SENATE 
S.B.No. 2180 
RECEIVED BV:_~_ 
Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
REVITALIZING THE PROCEDURE FOR ACQUISITION OF RIGHT OF WAY, SITE 
OR LOCATION FOR NATIONAL GOVERNMENT INFRASTRUCTURE 
PROJECTS, THEREBY REPEALING FOR SUCH 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" AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of Represeutatives of the Philippines in Congress 
assembled: 
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SECTION 1. Declaration of Policy - While eminent domain is an inherent 
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power of the State, Article III, Section 9 of the Constitution places parameters for the 
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exercise of said power by providing that private property shall not be taken for public 
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use without just compensation. Towards this end, the State shall ensure that owners of 
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real property acquired for national government infrastructure projects are promptly 
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paid just compensation without compromising the expeditious acquisition of right-of-
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way. 
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SEC. 2. 
National Government Projects. - The term "national government 
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projects" shall refer to all national government infrastructure projects, engineering 
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works and service contracts, including projects undertaken by government-owned and 
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-controlled corporations, projects covered by Republic Act No. 6957, as amended by 
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Republic Act No. 7718, otherwise known as the "Build-Operate-and-Transfer;Law/' and 
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such other related and necessary activities, such as but not limited to site acquisition, 
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construction, 
completion, 
operation, 
maintenance, 
improvement, 
repair 
and 
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rehabilitation, regardless of the source of funding. 
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SEC. 3. 
Modes of Acquiring Real Property. - The government may acquire 
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real property needed as right-of-way, site or location for any national government 


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infrastructure project through donation, negotiated sale, expropriation or any other 
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mode of acquisition provided by law. 
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Financial assistance may also be given to owners of lands acquired under 
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Commonwealth Act No, 141, as amended, for the area or portion subject to the 
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reservation under Section 112 thereof in such amounts as may be determined by the 
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implementing agency (IA) or instrumentality concerned, in consultation with the 
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Commission on Audit and the assessor's office concerned pursuant to Section 18 of 
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Executive Order No, 1035, 
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SEC. 4. 
Guidelines on Negotiated Sale. - The implementing agency may 
offer to acquire 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 Institutions 
(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 regard to the taxes relative to the transfer of title, the implementing agency 
will pay the documentary 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 the implementing agency to process remittance 
of taxes to the Bureau of Internal Revenue; particularly for such amounts corresponding 
to the capital gains tax 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 
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Absolute Sale to cover the transfer of ownership of the subject property. Upon the 
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execution of the Deed of Absolute Sale, the property owner shall submit to the 
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implementing agency the transfer certificate of title, tax declaration, real property tax 
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certificate, and such other documents necessary to transfer title. The implementing 
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agency shall tender payment of at least fifty percent (50%) of the negotiated offer price, 
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net of taxes relative to the transfer, upon the execution of the Deed of Absolute Sale: 
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Provided, That there is complete submission by the property owner of all documents as 
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enumerated above. 
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(c) 
The implementing agency shall pay the remaining fifty percent (50%) of 
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the negotiated offer price, net of taxes, to the property owner after the transfer of title in 
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the name of the Republic of the Philippines. 
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(d) 
In case the owner rejects either or both of the above offers of the 
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government for a negotiated purchase, the implementing agency may initiate 
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expropriation proceedings pursuant to Section 5 hereof. 
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SEC. 5. 
Guidelines for Expropriation Proceedings. -
Whenever it is 
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necessary to acquire real property for the right-of-way, site or location for any national 
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government 
infrastructure 
project 
through 
expropriation, 
the 
appropriate 
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implementing agency, through the Office of the Solicitor General, the Office of the 
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Government Corporate Counselor their deputized legal counsel, shall initiate the 
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expropriation proceedings before the proper court under the following guidelines: 
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(a) 
Upon the filing of the complaint or at any time thereafter, and after due 
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notice to the defendant, the implementing agency shall immediately pay the owner of 
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the property by depositing with the court the amount equivalent to the sum of (1) one 
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hundred percent (100%) of the value of the property based on the current appropriate 
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zonal valuation of the Bureau of Internal Revenue, issued not more than three years 
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prior to the filing of the expropriation complaint; and (2) the value of the improvements 
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o:r structures located within the property. 
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In case the property owner cannot be found or remains unknown despite the 
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exertion of due diligence; in case the property owner is deceased or where the estate has 
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not yet been settled; or in case there are conflicting claims over the ownership of the 
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property or improvements or structures thereon, the amount equivalent to one hundred 
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percent (100%) of the zonal valuation of the property and such improvements or 
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structures thereon as determined by the Bureau of Internal Revenue, shall be deposited 
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with the court for release to the person adjudged in the same proceedings as entitled 
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thereto. 
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The court shall issue a writ of possession not later than seven (7) working days 
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from the time of deposit of the full amount, subject to relevant provisions of the Rules of 
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Court. The court shall release the deposited amount along with any interest that may 
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have accrued thereon to the owner upon presentation of sufficient proof of ownership. 
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(b) 
In provinces, cities, municipalities and other areas where there is no land 
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classification or zonal valuation, or where the zonal valuation is more than three (3) 
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years old, the City or Municipal Assessor or the Bureau of Internal Revenue, as the case 
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may be, shall produce a Declaration of Real Property and Improvement as well as a 
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zonal valuation for the property not more than thirty (30) days from the date of the 
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implementing agency's written request therefor; 
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(c) 
In case the completion of a government infrastructure project is of utmost 
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u~gency and importance, and where there are no land classification, no zonal valuation 
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or where zonal valuation is more than three years, the IA shall use the EIR zonal value 
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and land classification of similar lands within the immediate vicinity. 
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SEC. 6. 
Valuation of Improvements or Structures. - The Department of 
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Public Works and Highways and other concerned implementing agencies, in 
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coordination with local government units concerned with the acquisition of right-of-
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way, site or location for any national government infrastructure project, are hereby 
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mandated to enact the necessary implementing rules and regulations for equitable 
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valuation of improvements or structures on land to be expropriated not later than sixty 
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(60) days upon approval of this Act. 
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SEC. 7. 
Ecological and Environmental Concerns. - In all cases involving the 
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acquisition of right-of-way, site or location for any national government infrastructure 
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project, the implementing agency shall take into account the ecological and 
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environmental impact of the project and shall ascertain compliance with environmental 
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laws, land use ordinances and all pertinent provisions of Republic Act No. 7160, as 
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amended, otherwise known as the Local Government Code of 1991. 
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SEC. 8. 
Informal Settler Families Relocation. - The National Housing 
Authority, in coordination with other related agencies as well as concerned local 
government units, 
shall establish and develop relocation sites in anticipation of 
informal settlers that have to be relocated from areas covered by right-of-way, site or 
location government infrastructure projects: Provided, That where there are no 
relocation sites available for the purpose and where the completion of a government 
infrastructure project is of utmost urgency and importance, the implementing agency 
may choose to offer financial assistance in lieu of a relocation site, pursuant to Section 
28 of Republic Act No. 7279, otherwise known as the Urban Development and Housing 
Act of 1992: Provided further, That if the informal settlers refuse said offer of financial 
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assistance, their continued occupation of the property shall not be a bar for the court to 
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issue the necessary "Writ of Demolition" to dismantle or remove structures within the 
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subject property: Provided finally, That the implementing agency shall take into account 
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and observe diligently the procedure provided for in Section 28 of RA. 7279. 
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Funds for the relocation of informal settlers shall come from appropriations 
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therefor included in the General Appropriations Act or from appropriate funds for 
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infrastructure projects of the implementing agency concerned. 
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SEC. 9. 
Project Proponent Financing. -
In 
case 
of 
Public 
Private 
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Partnership or Build-Operate-and-Transfer projects, the project proponent may finance 
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the costs, administrative or actual, necessary for the acquisition of right-of-way, site or 
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location of government infrastructure projects. 
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SEC. 10. 
Sanctions. -A violation of any proviSion of this Act shall subject the 
government official or employee concerned to appropriate administrative, civil or 
criminal sanctions, including suspension or dismissal from government service and 
forfeiture benefits. 
SEc.n. 
Rules and Regulations.- A committee composed of the Secretary of 
Department of Public Works and Highways as chairperson and the Secretaries of the 
Department of Transportation and Communications, Department of Justice and 
Department of Budget and Management; the Solicitor General; the Commissioner of the 
Bureau of Internal Revenue; the Administrator of the Land Registration Authority; the 
Head of the Bureau of Local Government Finance; and such other concerned agencies as 
members shall prepare the necessary rules and regulations for the proper 
implementation of this Act within sixty (60) days from its effectivity. 
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SEC. 12. 
Appropriations Clause. - Such amounts necessary for the effective 
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implementation of this Act shall be included in the General Appropriations Act of the 
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year following its enactment. 
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SEC. 13. 
Separability Clause. - If any part or provision of this Act shall be 
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declared unconstitutional or invalid, the remaining parts or provisions not affected 
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thereby shall remain in full force and effect. 
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SEC. 14. 
Repealing 
Clause. 
Any 
laws, 
decrees, 
instructions, 
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promulgations, rules and regulations, or parts thereof not consistent with or contrary to 
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the provisions of this Act are hereby deemed modified, amended or repealed 
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accordingly. 
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SEC. 15. 
Effectivity Clause. - This Act shall take effect upon its publication 
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in at least two (2) national newspapers of general circulation. 
Approved, 
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