Title
Right-of-Way Acquisition for Gov't Projects
Law
Republic Act No. 10752
Decision Date
Mar 7, 2016
Republic Act No. 10752 streamlines the acquisition of right-of-way for national government infrastructure projects, ensuring prompt just compensation for property owners through various modes of acquisition, including negotiated sale and expropriation.

Law Summary

Declaration of Policy

  • Ensures prompt and just compensation for private property owners when their land is acquired for national government infrastructure projects.
  • Upholds the constitutional provision that private property shall not be taken without just compensation.

Definition and Scope of National Government Projects

  • Covers all national government infrastructure projects, public service facilities, engineering works, and service contracts.
  • Includes projects by government-owned and controlled corporations and projects under the Build-Operate-and-Transfer Law.
  • Encompasses related activities such as site acquisition, construction, operation, maintenance, and improvements.
  • Local Government Units (LGUs) may adopt this Act for local infrastructure projects subject to the Local Government Code.

Modes of Acquiring Real Property

  • Acquisition may be through donation, negotiated sale, expropriation, or other lawful means.
  • Special provisions apply to lands under the Public Land Act, differentiating original patent holders from other owners.
  • Donations or similar acquisitions can be made from government-owned or controlled corporations.
  • Government may access and use subsurface or subterranean portions of private lands for infrastructure more than 50 meters below surface.

Rules on Negotiated Sale

  • Compensation offered shall include:
    • Current market value of the land.
    • Replacement cost of structures and improvements.
    • Current market value of crops and trees.
  • Property valuation may be done by government financial institutions or accredited independent appraisers.
  • Property owners have 30 days to accept the offer; rejection or failure to respond leads to expropriation.
  • Special protections for certain occupants who do not own the land but meet specific criteria.
  • Government pays capital gains tax, documentary stamp tax, transfer tax, and registration fees; owners pay unpaid real property tax.
  • Deed of absolute sale must be executed including submission of necessary ownership and tax documents.
  • Partial payments are made upon deed execution, with balances paid upon property clearance and title transfer.

Expropriation Proceedings

  • Initiated by implementing agency through legal counsel before the proper court.
  • Agency must deposit estimated value covering land, improvements, crops, and trees to the court.
  • Court issues writ of possession ex parte, allowing agency to take possession and proceed with project.
  • Procedures for cases where ownership is unknown, contested, or deceased owners.
  • City or municipal assessor and BIR must provide land classification and zonal valuation within 60 days if not existing or outdated.
  • Courts determine just compensation within 60 days if contested; differences paid after final decision.
  • Implementing agency bears documentary taxes; owner pays capital gains tax and unpaid real property tax.

Standards for Property Valuation

  • Factors include:
    • Property classification and suitable use.
    • Development cost for improvements.
    • Owner’s declared value.
    • Selling price of similar lands nearby.
    • Disturbance compensation for removal of improvements.
    • Land size, shape, location, tax declaration, and zonal valuation.
    • Evidence such as ocular findings and documents.
    • Ensuring owners can acquire similar property and rehabilitate themselves.
  • Implementing rules will define detailed valuation standards and terms of reference for appraisers.

Environmental Considerations

  • Implementing agencies must consider ecological and environmental impacts.
  • Compliance with environmental laws and land-use ordinances required before project implementation.

Relocation of Informal Settlers

  • Government agencies (HUDCC, NHA) and LGUs coordinate to develop resettlement sites with necessary services.
  • LGUs administer resettlement when applicable.
  • Courts may issue writs of demolition if informal settlers refuse or fail to clear expropriated lands.
  • Procedures under the Urban Development and Housing Act must be observed.

Appropriations for Right-of-Way Acquisition

  • Government must allocate funds in advance for acquisition expenses including surveys, appraisals, compensation, resettlement development, and administrative costs.
  • In Public-Private Partnership (PPP) projects, proponents may advance or finance right-of-way costs with reimbursement or recovery mechanisms.

Regulation of Developments within Declared Right-of-Way

  • No development or issuance of permits contrary to project plans within right-of-way allowed for two years from notice of taking, unless authorized by implementing agency head.

Sanctions

  • Violations subject officials and employees to administrative, civil, or criminal penalties including suspension or dismissal and forfeiture of benefits.

Implementing Rules and Regulations (IRR)

  • A committee chaired by the Secretary of Public Works and Highways, including key government officials, shall prepare IRR within 60 days of the Act’s approval.

Transitory Provisions

  • The Act applies to all right-of-way transactions except those already satisfactorily concluded with signed agreements before its effectivity.

Separability Clause

  • If any provision is declared unconstitutional or invalid, other provisions remain in force.

Repealing Clause

  • Repeals Republic Act No. 8974 and other inconsistent laws, decrees, rules, or regulations.

Effectivity

  • The Act takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.

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