IMPLEMENTING RULES AND REGULATIONS OF the "Local Government Code of 1991," Local

REPUBLIC ACT NO. 10752, AN ACT Government Units (LGUs) may also adopt the
FACILITATING THE ACQUISITION OF RIGHT-OF- provisions of this IRR for the acquisition ofROW for
WAY, SITE OR LOCATION FOR NATIONAL local government infrastructure projects.
GOVERNMENT INFRASTRUCTURE PROJECTS
Section 3. DEFINITION OF TERMS
Philippine Daily Inquire (July 22, 2016)
IRR OF REPUBLIC ACT NO. 10752, July 22, 2016 For purposes of this IRR, the following terms shall
be understood as defined:
COMMITTEE FOR THE PREPARATION OF THE
IRR OF RA 10752 Act – Means RA No. 10752, otherwise known as
"An Act Facilitating the Acquisition of Right-Of-Way,
IMPLEMENTING RULES AND REGULATIONS Site or Location for National Government
OF REPUBLIC ACT NO. 10752, Infrastructure Projects," or "The Right-of-Way Act."
AN ACT FACILITATING THE ACQUISITION OF
RIGHT-OF-WAY, Implementing Agency or IA – refers to any
SITE OR LOCATION FOR NATIONAL department, bureau, office, commission, authority
GOVERNMENT or agency of the national government, including
INFRASTRUCTURE PROJECTS any government-owned or controlled corporation or
state college or university, authorized by law or its
Pursuant to the provisions of Section 13 of respective charter to undertake national
Republic Act (RA) No. 10752, the following government projects.
Implementing Rules and Regulations (IRR) are
hereby promulgated to carry out the provisions of IRR – refers to these Implementing Rules and
the said Act. Regulations for the Act.

Section 1. COVERAGE National Government Projects – as defined in

Section 3 of the Act, refers to all national
This IRR shall cover the acquisition of real government infrastructure projects and their public
properties needed as right-of-way, site or location service facilities, engineering works and service
for national government projects undertaken by any contracts, including projects undertaken by
department, bureau, office, commission, authority government-owned and -controlled corporations, all
or agency of the national government, including project covered by RA No. 6957, as amended by
any government-owned or controlled corporation or RA No. 7718, otherwise known as the "Build-
state college or university, authorized by law or its Operate-and-Transfer Law," and other related laws
respective charter to undertake national including those involving private sector participation
government projects. and all necessary activities or projects that are
intended for public use or purpose, such as site
Section 2. DECLARATION OF POLICY acquisition, supply and/or installation of equipment
and materials, implementation, construction,
This IRR is governed by the fundamental policy completion, operation, maintenance, improvement,
declared in Section 9, Article III of the Constitution repair and rehabilitation, regardless of the source
which states that private property shall not be taken of funding. These projects shall include, but not be
for public use without just compensation, as limited to the following:ChanRoblesVirtualawlibrary
reiterated in Section 2 of the Act. Towards this end,
the State shall ensure that all persons whose real (1) Highways, including expressways, roads,
property is affected by national government bridges, interchanges, overpasses, tunnels,
infrastructure projects are promptly paid just viaducts and related facilities; (2) Railways and
compensation for the expeditious acquisition of the mass transit facilities; (3) Port infrastructure, like
required right-of-way (ROW). piers, wharves, quays, storage handling and ferry
services; (4) Airports and air navigation facilities;
In accordance with Section 3 of the Act, subject to (5) Power generation, transmission and distribution
the provisions of RA No. 7160, otherwise known as facilities; (6) Radio/television broadcasting and
telecommunications infrastructure; (7) donation shall immediately be prepared. The deed
Information technology infrastructure; (8) of donation shall be simple and unconditional, and
Irrigation, flood control and drainage systems; contain clauses to the effect that the donation is
(9) Water and debris retention structures and made not to defraud the donor's creditors, and that
dams; (10) Water supply, sanitation, sewerage the donor has, if necessary, reserved for himself
and waste management facilities; (11) Land enough property for his family's subsistence,
reclamation, dredging and development; (12) sustenance and support in case the donor is a
Industrial and tourism estates; (13) Government private individual.
school buildings, hospitals, clinics and other
buildings and housing projects; (14) Public The donation must be accepted by the IA, which
markets and slaughterhouses; and (15) Other shall be indicated in the deed.
similar or related infrastructure works and services
of the national government. The lA shall pay the documentary stamp tax,
transfer tax and registration fees, while the donor
Replacement Cost – refers to the cost necessary shall pay any unpaid real property tax.
to replace the affected structure or improvement
with a similar asset based on current market prices. Section 6. NEGOTIATED SALE

Right-of-Way or ROW – means a part or the 6.1 Compensation Price

entirety of a property, site or location, with defined
physical boundaries, used or required by a national As provided in Section 5 of the Act, the IA may
government project.Section 4. MODES OF acquire through negotiated sale the required ROW
ACQUIRING REAL PROPERTY project, by offering to the property owner as
compensation price, the sum of the: current market
As provided in Section 4 of the Act, the following value of the land;cralawlawlibrary
are the regular modes of ROW
acquisition: Donation replacement cost of structures and improvements
therein; and
Negotiated Sale
current market value of crops and trees therein.6.2
Expropriation The other modes of ROW acquisition Use of Government Financial Institutions and
are the following: Acquisition of Properties under Independent Property Appraisers
Commonwealth Act (CA) No. 141
To determine the appropriate price offer for the
Exchange or Barter acquisition of ROW through negotiated sale, the IA
may engage the services of either of the following,
Easement of Right-of-Way taking into consideration efficiency, economy and
the need of the IA to facilitate the implementation of
Acquisition of Subsurface Right-of-Way national government infrastructure projects: A
government financial institution (GFI) with
Other modes authorized by lawSection 5. adequate experience in property appraisal to be
DONATION selected by the IA through a competitive process;
or
The IA may explore the mode of donation of the
needed portion or whole of the affected property, An independent property appraiser (IPA) accredited
i.e., lots with or without improvements, by the by:ChanRoblesVirtualawlibrary
property owner concerned, which may be a private
individual/corporation or a government (1) the Bangko Sentral ng Pilipinas (BSP) or
agency/corporation.
(2) a professional association of appraisers
If the property owner agrees to donate the property recognized by BSP. The IPA shall be procured by
to be acquired by the IA as ROW, a deed of the IA under the provisions of RA No. 9184,
otherwise known as the "Government Procurement
Reform Act," and its IRR pertaining to consulting The IA shall adopt the TOR template given in
services. Annex A.

For this purpose, the BSP and the professional 6.4 Engagement of GFIs
association of appraisers shall provide their lists of
IPAs upon request of the IA. The BSP and the If the IA decides to engage the services of a GFI,
professional association of appraisers shall not be the IA shall enter into a Memorandum of
accountable for any acts of the IPAs stated in the Agreement (MOA) with the GFI in accordance with
list. the following conditions: The GFI is capable and
has adequate experience to undertake the property
Whenever applicable, priority shall be given to the appraisal services required by the
engagement of the services of a GFI. IA;cralawlawlibrary

The IA may use the appraisal reports of the GFI or The GFI must actually undertake the appraisal by
IPA as one of the bases of the IA's price offer for administration using its own in-house manpower
negotiated sale, consistent with the standards for and resources; and
assessment under Section 12 of this IRR. For this
purpose, the IA is encouraged to develop its in- The IA shall pay the GFI an appropriate fee for its
house personnel capable of validating appraisal appraisal services in accordance with the terms of
reports. the MOA. 6.5 Procurement of IPAs

6.3 Terms of Reference for GFis and IPAs If the IA decides to engage the services of an IPA
to determine the appropriate price of a property to
As basis for the engagement of the services of a be offered to the property owner through
GFI or IPA, the IA shall prepare the Terms of negotiated sale under Section 6 of this IRR, the IA
Reference (TOR) for the services. The TOR shall shall procure the IPA in accordance with the rules
contain, among other things, the following basic and procedures for the procurement of consulting
content: Background of the project for which the services under RA No. 9184 and its IRR,
ROW is required, and the objectives of the property
appraisal services to be provided by the GFI or An IPA must meet the following criteria to qualify for
IPA;cralawlawlibrary the consulting services: The IPA must be in the list
of the BSP or of a professional association of
Desired outputs to be delivered by the GFI or IPA, appraisers recognized by the BSP, provided that
their description and degree of detail - e.g., IPAs not yet included in the list shall not be barred
estimated market value of the land under from joining the procurement for such services,
consideration, the Replacement Cost of structures and provided further that prior to award of the
and improvements therein, and/or the market contract, such IPAs shall be required to submit a
value of crops and trees therein,;cralawlawlibrary proof that they are already included in the list; and

Standards and specifications to be observed by the The IPA must comply with the experience and other
GFI or IPA in providing the services and producing eligibility requirements provided in RA No. 9184
the desired outputs, which shall include those listed and its IRR, including the registration and license
under Section 12 of this IRR, as may be required for a Real Estate Appraiser. 6.6
applicable;cralawlawlibrary Replacement Cost

Duration of the services and timetable for the With regard to Section 6.1b of this IRR, the
delivery of outputs by the GFI or IPA; and Replacement Cost of a structure or improvement
affected by the ROW shall be based on the current
Qualifications of the GFI or IPA to be engaged. In market prices of materials, equipment, labor,
preparing the TOR, the IA may consult the GFI in contractors profit and overhead, and all other
case of services to be provided by the latter. attendant costs associated with the acquisition and
installation of a similar asset in place of the
affected asset. (1) Current market cost of materials to be used in
doing the work item called for, which shall include
If the affected structure has been damaged, then the following: (a) Cost at source including
the Replacement Cost should be based on the pre- processing, crushing, stockpiling, loading, royalties,
damaged condition of that structure. The local taxes, construction and/or maintenance of
Replacement Cost of the structure may vary from haul roads, etc.; (b) Expenses for hauling to
the market value of the existing structure since the project site; (c) Handling expenses; (d)
structure that would actually replace it may have a Storage expenses; and (e) Allowance for
different cost at current market prices. The waste and/or losses, at five percent (5%) of
replacement structure has to perform the same materials requirement. (2) Current market cost
functions and meet the performance specifications of labor to be used for: (a) Salaries and wages,
as the original structure. within the limits authorized by the Department of
Labor and Employment; and (b) Fringe
The IA may engage the services of a GFI or an IPA benefits, such as vacation and sick leaves, benefits
to determine the appropriate price offer, consistent under the Workmen's Compensation Act, Social
with the guidelines set forth in Section 6.2 of this Security System (SSS) contributions, allowances,
IRR. The IA may also request the assistance of the 13th month pay, bonuses, etc. (3) Equipment
DPWH to determine such Replacement Cost. Expenses: (a) Rental of equipment – usually
based on the current Associated Construction
If the IA shall directly determine the Replacement Equipment Lessors, Inc. (ACEL) rental rates. For
Cost of structure or improvement, the following simple computation, the operated rental rates are
guidelines derived from DPWH standards for preferred to the bare rental rates as the former
estimating civil works costs shall be used: The IA includes operator's wages, fringe benefits, fuel, oil,
shall prepare the basic plan and performance-type lubricants and equipment maintenance. (b)
specifications for the structure to be replaced, Mobilization and demobilization – at one percent
generally considering its original condition. These (1%) of the EDC of the civil works items. The
shall indicate, among other things, the Estimated Indirect Cost shall consist of the
following:ChanRoblesVirtualawlibrary following items based on accepted construction
industry practices:ChanRoblesVirtualawlibrary
(1) Main function or purpose of the structure– e.g.,
residential; (2) Basic configuration and (1) Overhead Expenses not exceeding eight
dimensions of the structure – e.g., two-storey percent (8%) of the EDC, which include the
house with a total floor area of 150 square meters; following, as applicable: (a) Engineering and
and (3) Major structural features – e.g., concrete Administrative Supervision, including expenses for
and wooden structure, with galvanized iron(GI) office equipment and supplies, power and water
roof. consumption, communication and maintenance;
Based on the basic plan and specifications (b) Transportation allowances; (c) Premium
prepared in Section 6.6a of this IRR, the IA shall on Contractor's All Risk Insurance, where
prepare the Replacement Cost of the structure. necessary; and (d) Financing Cost, e.g.,
The Replacement Cost is the price that the IA will premium on bonds. (2) Contingencies and
pay the owner to replace the existing structure or Miscellaneous not exceeding four percent (4.0%)
asset with a similar asset at current market prices. of the EDC. These include expenses for
unforeseen events and other activities.
The Replacement Cost shall be composed of the (3) Contractor's Profit Margin not exceeding eight
Estimated Direct Cost and the Estimated Indirect percent (8%) of the EDC for projects with an EDC
Cost of the replacement structure. These of more than PhP 5 million and ten percent (10%)
components shall be calculated in accordance with for projects with an EDC ofPhP 5 million and below.
the succeeding items. (4) Value Added Tax (VAT) Component in
accordance with law, five percent (5%) in the case
The Estimated Direct Cost (EDC) shall consist of of a property owned by a government agency, or
the following:ChanRoblesVirtualawlibrary twelve percent (12%) in the case of a property
owned by a private party, of the sum of the EDC, defined in RA No. 7279, "professional squatters"
Overhead, Contingencies, Miscellaneous, and refers to: individuals or groups who occupy lands
Profit. In all cases, the Indirect Costs shall not without the express consent of the landowner and
exceed the following limits: who have sufficient income for legitimate housing,
as identified by the proper Local Inter Agency
Estimated Direct Cost
Committee (LIAC) with the assistance of the Urban
(EDC) Overhead, Contingencies,
Poor Affairs Office (UPAO); or
and Miscellaneous (OCM)
as% of EDC Profit,
persons who have previously been awarded
as% of EDC UptoPhP5M 12 10 Above PhP5M
homelots or housing units by the Government but
to PhP50M 9 8 Above PhP50M to PhP150M 7 8
who sold, leased or transferred the same to settle
Above PhP150M 6 8
illegally on a different homelot or housing unit but in
If engaged by an IA to determine the Replacement the same place or in another urban area, and non-
Cost of structures and improvements, the GFI/IPA bona fide occupants and intruders of lands
may use applicable provisions of the valuation reserved for socialized housing. "Squatting
standards adopted by the Professional Regulatory syndicate," as defined in RA No. 7279, refers to a
Board of Real Estate Service under the group of persons engaged in the business of
Professional Regulation Commission (PRC). squatter housing for profit or gain. The term shall
not apply to individuals or groups who simply rent
6.7 Acceptance or Rejection of Price Offer land and housing from professional squatters or
squatting syndicates.
As provided in Section 5 of the Act, the property
owner is given thirty (30) days from receipt of the To complement the four criteria mentioned in the
written offer by the IA to decide whether or not to first paragraph of this Section 6.8, the owner and
accept the offer as payment for his property. Upon occupant of the structure or improvement must
refusal or failure of the property owner to accept show a proof of ownership of the
such offer or if he fails and/or refuses to submit the structure/improvement, e.g., a certification from the
documents necessary for payments, the IA shall Barangay concerned.
immediately initiate the expropriation proceedings
as provided in Section 7 of this IRR. Informal settler families classified as
underprivileged and homeless citizens as defined
6.8 Owners of Structures and Improvements in RA No. 7279 and not qualified under the four
With No Rights to the Land criteria above shall be entitled to relocation
pursuant to RA No. 7279 in accordance with
The provisions of Section 6.6 of this IRR pertaining Section 14 of this IRR.
to the replacement cost of structures and
improvements shall also apply to all owners of 6.9 Taxes and Fees
structures and improvements who do not have
legally recognized rights to the land, and who meet As provided in Section 5(c) of the Act, the IA shall
all of the following criteria: Must be a Filipino pay for account of the seller/owner, the Capital
citizen;cralawlawlibrary Gains Tax (CGT), as well as the Documentary
Stamp Tax (DST), transfer tax and registration
Must not own any real property or any other fees, while the owner shall pay any unpaid real
housing facility, whether in an urban or rural property tax.
area;cralawlawlibrary
The IA shall pay the CGT to the Bureau of Internal
Must not be a professional squatter or a member of Revenue (BIR) based on the actual consideration
a squatting syndicate, as defined in RA No. 7279, stated in the Deed of Sale, as expressed
otherwise known as the "Urban Development and below:ChanRoblesVirtualawlibrary
Housing Act of 1992;" and
AC=NAC+CGT where: AC = Actual
Must not occupy an existing government ROW. As Consideration indicated in the Deed of Sale to be
appropriated and paid out by the IA for the In case the sale pertains to structures and
negotiated sale, NAC = Compensation Price improvements only, as provided in Section 5(b) of
as offered by the IA to the property owner in the Act, the property owner and the IA shall
accordance with Section 6.1 of this IRR, net of execute an Agreement to Demolish and Remove
CGT, and CGT = Capital Gains Tax to be paid Improvement (ADRI), provided that the former has
by the IA to the BIR, for the account of the owner. submitted to the latter the necessary documents to
Since CGT = x% of AC, then NAC = AC – CGT establish proof of ownership of said structures and
= 100%AC – x%AC = (100%- x%)AC, and, improvements, as mentioned in Section 6.8 of this
therefore, AC = NAC/(100%- x%) IRR. Similarly, the IA shall remit to the LGU
Annex B shows an illustrative example in concerned the amount corresponding to any
computing the AC, NAC and CGT for a hypothetical unpaid tax on such structures and improvements,
property affected by a ROW to be acquired through subject to the deduction of this amount from the
negotiated sale. total negotiated price, provided that it is not more
than the negotiated price.
The above provision pertaining to CGT does not
apply to the sale of property classified as ordinary Upon the execution of a Deed of Sale, the IA shall
assets. The latter is subject to the existing BIR pay the property owner: Fifty percent (50%) of the
rules and regulations. negotiated price of the affected land, exclusive of
the payment of unpaid taxes remitted to the LGU
ln addition, the DST, transfer tax and registration concerned under Section 6.9 of this IRR; and
fees for the negotiated sale shall be paid by the IA
in accordance with pertinent laws and regulations. Seventy percent (70%) of the negotiated price of
the affected structures, improvements, crops and
Upon the request of the property owner, the IA shall trees, exclusive of unpaid taxes remitted to the
remit to the LGU concerned the amount LGU concerned under Section 6.9 of this IRR.
corresponding to any unpaid real property tax, Where the property owner owns both the land and
subject to the deduction of this amount from the structures/improvements, as provided in Section
total negotiated price, provided that the said 5(g) of the Act, the IA shall, at the periods stated
amount is not more than the negotiated price. below, pay the property owner the remaining fifty
percent (50%) of the negotiated price of the
Section 6.10 Deed of Absolute Sale and affected land, and thirty percent (30%) of the
Payments affected structures, improvements, crops and trees,
exclusive of unpaid taxes remitted to the LGU
As provided in Section 5(e) of the Act, the property concerned under Section 6.9 of this IRR, provided
owner and the IA shall execute a Deed of Absolute that the land is already completely cleared of
Sale after the property owner has submitted to the structures, improvements, crops and trees, as
IA the Transfer Certificate of Title, Tax Declaration, certified by the IA: At the time of the transfer of title
Real Property Tax Certificate or Clearance (as in the name of the Republic of the Philippines, in
issued by the Treasurer of the concerned LGU) and cases where the land is wholly affected; and
other documents necessary to transfer the title to
the Republic of the Philippines. The IA shall cause At the time of the annotation of a deed of sale on
the annotation of the Deed of Absolute Sale on the the title, in cases where the land is partially
Transfer Certificate of Title. affected. Where the property owner owns only the
land, as provided in Section 5(g) of the Act, the IA
In case of sale of land with structures and other shall, at the periods stated below, pay the property
improvements, the Deed of Sale shall provide a owner the remaining fifty percent (50%) of the
stipulation allowing the IA or its authorized negotiated price of the affected land, exclusive of
representatives to demolish and remove them. unpaid taxes remitted to the LGU concerned under
The Deed of Sale shall also include a stipulation on Section 6.9 of this IRR: At the time of the transfer
the right of the IA to immediately enter the property of title in the name of the Republic of the
and implement the project. Philippines, in cases where the land is wholly
affected; and
 Certification from the Department of Environment
At the time of the annotation of a deed of sale on and Natural Resources (DENR) that the land is
the title, in cases where the land is partially alienable and disposable; and
affected. Where the property owner owns only the
structures/improvements, as provided in Section Other documents that may show proof of
5(g) of the Act, the IA shall, at the periods stated ownership. In case of failure to establish ownership
below, pay the property owner the remaining thirty over the land, but where improvements are
percent (30%) of the affected structures, introduced thereon, the apparent property owner
improvements, crops and trees, exclusive of unpaid may be entitled to compensation for the said
taxes remitted to the LGU concerned under Section improvements subject to Section 6.8 of this IRR.
6.9 of this IRR, immediately after the IA has
certified that the land is already completely cleared Section 7. EXPROPRIATION
of structures, improvements, crops and trees. At
the time of the transfer of title in the name of the Whenever it is necessary to acquire real property
Republic of the Philippines, in cases where the for the ROW, site or location for any national
land is wholly affected; and government infrastructure through expropriation,
which includes, among others, the case in Section
At the time of the annotation of a deed of sale on 6.7 of this IRR where, within thirty (30) days, the
the title, in cases where the land is partially property owner refuses or fails to accept the price
affected. The IA shall ensure the faithful and offer of the IA for negotiated sale or fails and/or
prompt compliance with the above payment refuses to submit the documents
procedures and may revise or issue the necessary
orders and directives to this effect. necessary for payment, or when negotiation is not
feasible, then the appropriate IA, through the Office
The IA shall pay the CGT to the BIR within thirty of the Solicitor General (for national agencies), the
(30) days after (a) the release of the initial Office of the Government Corporate Counsel (for
payments specified above or (b) the notarization of government-owned and -controlled corporations),
the Deed of Sale, whichever is earlier. The IA shall or their deputized government or private legal
also pay the DST within five (5) days after the close counsel, shall initiate the expropriation proceedings
of the month when the Deed of Sale is notarized. by filing a verified complaint before the proper court
under the following guidelines: Upon the filing of
6.11 Outstanding Claims for ROW Payments the complaint or at any time thereafter, and after
due notice to the defendant, the IA shall
In accordance with Section 5 of the Act, the immediately deposit to the court in favor of the
provisions of Section 6.1 of this IRR shall also owner, the amount equivalent to the sum
apply to outstanding claims for right-of-way of:ChanRoblesVirtualawlibrary
payments, except that the amount to be offered
shall be the price at the time of taking of the (1) One hundred percent (100%) of the value of
property, including legal interest until fully paid, the land based on the current relevant zonal
subject to the transitory provision in Section 19 of valuation of the BIR, issued not more than three (3)
this IRR. years prior to the filing of the expropriation
complaint, subject to Section 7(c) of this IRR; (2)
6.12 Special Cases The replacement cost at current market value of
the improvements and/or structures as determined
In case of untitled lands being acquired through by: (a) the IA; (b) a GFI with adequate
negotiated sale, the IA shall compensate the owner experience in property appraisal; and (c) an
using the procedures in Section 6 of the IRR, IPA accredited by the BSP. (3) The current
provided that the land owner shall present: a Tax market value of crops and trees located within the
Declaration showing his and his predecessors' property as determined by the government
open and continuous possession of the property for financial institution or an independent property
at least thirty (30) years;cralawlawlibrary appraiser to be selected as indicated in Section 6
of this IRR.
Upon compliance with the above guidelines, the declaration of real property and improvement for
court shall immediately issue an order to take the area. In provinces, cities, municipalities and
possession of the property to the IA which shall other areas where there is no zonal valuation, or
start the implementation of the project. where the current zonal valuation has been in force
for more than three (3) years, the BIR is mandated
If within seven (7) working days after the deposit to within the period of sixty (60) days from the date of
the court of the amount equivalent to the sum filing of the expropriation case, to conduct a zonal
under items (a)(l) to (a)(3) of Section 7 of this IRR, valuation for said area, based on the land
and the court has not issued to the IA a writ of classification done by the city or municipal
possession for the affected property, the counsel of assessor.
the IA shall immediately seek from the court the
issuance of the writ of possession. The court shall With reference to item (a)(l) of Section 7 of this
immediately issue the writ of possession ex parte; IRR, in case the completion of a government
no hearing shall be required. infrastructure project is of utmost urgency and
importance, and there is no land classification or no
The court shall release the said amount to the existing zonal valuation of the area concerned or
owner upon presentation of sufficient proofs of the zonal valuation has been in force for more than
ownership. three (3) years, the IA shall use the BIR zonal value
and land classification of similar lands within the
In case the owner of the property cannot be found, adjacent vicinity as the basis for the valuation.
is unknown, or is deceased in cases where the
estate has not been settled, after exerting due In any of the cases in items (a) to (d) of Section 7
diligence, or there are conflicting claims over the of this IRR, upon its receipt of the writ of
ownership of the property and improvements possession issued by the court, the IA may take
and/or structures thereon, the IA shall deposit the possession of the property and start the
amount equivalent to the sum under items (a)(l) to implementation of the project.
(a)(3) of Section 7 of this IRR to the court, for the
benefit of the person to be adjudged in the same In the event that the owner of the property contests
proceeding as entitled thereto. the IA's proffered value, the court shall determine
the just compensation to be paid the owner within
Upon compliance with the above guidelines, the sixty (60) days from the date of filing of the
court shall immediately issue to the IA an order to expropriation case. When the decision of the court
take possession of the property. becomes final and executory, the IA shall pay the
owner the difference between the amount already
If within seven (7) working days after the deposit paid and the just compensation as determined by
with the court of the amount equivalent to the sum the court.
under items (a)(l) to (a)(3) of Section 7 of this IRR,
the court has not issued to the IA a writ of With regard to the taxes and fees relative to the
possession for the affected property, the counsel of transfer of title of the property to the Republic of the
the IA shall immediately seek from the court the Philippines through expropriation proceedings, the
issuance of the writ of possession. IA shall pay the DST, transfer taxes under RA No.
7160 and registration fees, while the owner shall
The court shall release the said amount to the pay the CGT, any unpaid real property tax, and all
person adjudged in the same expropriation other applicable taxes under the law.
proceeding as entitled thereto.
The owner shall pay the CGT to the BIR within
In provinces, cities, municipalities and other areas thirty (30) days after the judgment in the
where there is no land classification, the city or expropriation case had become final and executory.
municipal assessor is hereby mandated within the The IA shall also pay the DST within five (5) days
period of sixty (60) days from the date of filing of after the close of the month when the judgment in
the expropriation case, to come up with the the expropriation case had become final and
required land classification and the corresponding executory.Section 8. ACQUISITION OF
PROPERTIES UNDER CA 141 temporary buildings used by Resident/Project
Engineers are no longer needed, the possession of
As provided in Section 4 of the Act, in cases of the portion of property used for the building shall
lands granted through CA No. 141, dated 07 revert to the title holders.
November 1936, known as the Public Land Act,
and its amendments, the IA shall: follow the other The IA shall extend financial assistance to the
modes of acquisition enumerated in this IRR, if the property owner in accordance with the provisions of
landowner is not the original patent holder and any Executive Order No. 1035, series of 1985.
previous acquisition of said land is not through a
gratuitous title; or Section 9. EXCHANGE OR BARTER

follow the provisions under CA No. 141 regarding Instead of being paid the money value of his
acquisition of ROW on patent lands, if the property, the owner of a property needed for a
landowner is the original patent holder or the ROW of a national government project may request
acquisition of the land from the original patent the government to exchange or barter an old
holder is through a gratuitous title. With respect to abandoned government road or other government
Section 8b above, under the provisions of CA No. property near the project with his said property. The
141, particularly Section 112, a ROW strip not IA may favorably consider this mode, subject to the
exceeding 20 meters in width within the land provisions of relevant laws and the following
acquired under that law is reserved by the conditions: The exchange shall be done on a
government for public use with damages to "value-for-value" basis, i.e., the properties being
improvements only. CA No. 141 was amended by exchanged are equivalent in market value or
Presidential Decree (PD) No. 635, dated 07 price;cralawlawlibrary
January 1975, which increased the ROW strip
reserved for public use to a width not exceeding 60 If the government property to be exchanged with
meters. the private property was originally donated by a
previous owner, the donation must be verified to
If the government decides to exercise its right to ensure that there is no condition which prohibits the
use the ROW strip reserved for public use within government from disposing of it to other private
the land acquired under CA No. 141, the owner is persons. If the said government property was
required to execute a quit claim. The IA shall then originally acquired through sale, the previous
take possession of the property affected by the owner shall have the first priority to re-acquire the
ROW without any compensation to the owner for property if required by law or by the contract or
the land, but shall pay the owner the cost of the deed of sale;cralawlawlibrary
damages for the improvements within that land
equivalent to their replacement cost as determined Owners of property whose land abut the said
in accordance with Section 6.6 of this IRR. If the abandoned government road or other property
owner refuses or is unable to issue a quit claim, the shall not be deprived of access, i.e., egress or
concerned government officials responsible for the ingress, to the new highway to be built, if any; and
implementation of projects are authorized to
immediately take possession of the portion of The private property owner and the IA which are
property subject of the lien, as the need arises and parties to the exchange or barter agreement shall
upon due notice to the owner. This is without be subject to applicable CGT and DST in
prejudice to the IA resorting to appropriate accordance with BIR rules and regulations.Section
proceedings to acquire immediate possession of 10. EASEMENT OF RIGHT-OF-WAY
the property.
If the portion of a lot needed for a ROW is minimal,
PD No. 1381 also allows the government to utilize such that the expenses for surveying or
the reserved ROW strip for temporary buildings for segregating that portion from the main lot would be
Resident and or Project Engineers needed in the very much more than the value of the part of the lot
prosecution of an infrastructure project. Once the needed, the IA may, if the property owner agrees,
infrastructure project is completed and the resort to the mode of Easement of ROW provided
under the Civil Code. affected property owners of any acquisition of
subsurface right of way needed for the
Under this mode, a ROW easement agreement infrastructure projects.
shall be executed by the property owner and the IA
whereby the former will grant the latter the right to If the national government project involves
use the affected portion of the lot as ROW, but the underground works within a depth of fifty (50)
owner retains ownership of that portion of the lot. meters from the surface, the IA may undertake the
mode of acquisition in the following
The IA shall pay the owner the value of that portion order: Negotiate with the property owner a
of the lot based on the existing zonal valuation perpetual easement of ROW for the subterranean
declared by the BIR. In addition, the IA shall portions of his property required by the project; and
compensate the property owner the replacement
cost of any improvements and structures on the Offer to acquire from the property owner the
land affected by the ROW in accordance with affected portion of the land, including the affected
Section 6.6 of this IRR. Entry by the IA to the structures, improvements, crops and trees therein
acquired property may be effected upon full in accordance with the provisions of the Act. To
payment of the value of the property. The IA may assist the IA in determining (a) the appropriate
engage the services of an IPA to determine the price offer for the perpetual easement of the ROW
amount of the easement to be paid. under Section 11a of this IRR or (b) the appropriate
price offer for the entire affected land including
The mode of ROW acquisition through easement structures, improvement, crops and trees under
agreement may also be used in government Section 11b of this IRR, the IA may engage the
agency-to-agency transactions, including those services of a GFI or an IPA, in accordance with the
involving government-owned and controlled procedure provided in Section 6 of this IRR. The
corporations. easement price under Section 11a of this IRR shall
be twenty percent (20%) of the market price of the
The IA shall cause the registration of all ROW land.
easement agreements with the Register of Deeds
concerned within ten (I0) days from the date of The IA shall follow the other rules for negotiated
their execution. The Register of Deeds shall sale provided in Section 6 of this IRR.
annotate on the respective titles the agreements
within seven (7) days from receipt thereof. Section 12. STANDARDS FOR ASSESSMENT
FOR NEGOTIATED SALE
Section 11. ACQUISITION OF SUBSURFACE
RIGHT-OF-WAY As provided in Section 7 of the Act, in order to
facilitate the determination of the market value of
As provided in Section 4 of the Act, when it is the property, the following relevant standards shall
necessary to build, construct, or install on the be observed: The classification and use for which
subsurface or subterranean portion of private and the property is suited based on, among other
government owned lands owned, occupied or things, the latest approved land use plan and or
leased by other persons, such infrastructure as zoning ordinance, if any, of the city or municipality
subways, tunnels, underpasses, waterways, concerned;cralawlawlibrary
floodways, or utility facilities as part of the
government's infrastructure and development The development cost for improving the land based
project, the government or any of its authorized on, among other things, the records and estimates
representatives shall not be prevented from entry of the City or Municipal Assessor concerned, GFI
into and use of such private and government lands or IPA for similar or comparable
by surface owners or occupants, if such entry and lands;cralawlawlibrary
use are made more than fifty (50) meters from the
surface. The value declared by the owners based on the
value shown in the owners' latest Tax Declaration
The IA shall duly consult with and notify the Certificates or Sworn Statements;cralawlawlibrary
 ordinances, and all pertinent provisions of RA No.
The current selling price of similar lands in the 7160.
vicinity based on, among other things, the latest
records on Deeds of Sale for similar lands in the During the feasibility study/detailed engineering
office of the Register of Deeds design of the projects, except for Public-Private
concerned;cralawlawlibrary Partnership (PPP) Projects, the IA shall secure
from the DENR an Environmental Compliance
The reasonable disturbance compensation for Certificate (ECC) or Certificate of Non-Coverage
the removal and/or demolition of certain (CNC), as the case may be, in accordance with PD
improvements on the land and for the value of No. 1586 and its IRR. In the case of ancestral
improvements thereon considering, among other domain, additional requirements in accordance with
things, the replacement cost of improvements at RA No. 8371 and its IRR must be complied with.
current market prices as provided in Section 6.6 of
this IRR;cralawlawlibrary The IA shall also prepare a Preliminary Land
Acquisition Plan and Resettlement Action Plan
The size, shape or location, tax declaration and (LAPRAP) or an Indigenous People's Action Plan,
zonal valuation of the land based on, among other as applicable, which shall form part of the
things, the latest records on Deeds of Sale in the Environmental Impact Assessment (EIA).
Register of Deeds, tax declaration by the City or
Municipal Assessor, zonal valuation of the BIR for For projects undertaken through PPP schemes
comparable properties;cralawlawlibrary under RA No. 6957 (as amended), its IRR, and
other pertinent laws, the provisions of the same
The price of the land as manifested in the ocular shall govern the requirements for obtaining an
findings, oral as well as documentary evidence ECC/CNC.
presented; and
Section 14. RELOCATION OF INFORMAL
Such facts and events so as to enable the affected SETTLERS
property owners to have sufficient funds to acquire
similarly situated lands of approximate areas as As provided in Section 9 of the Act, the
those required from them by the government, and government, through the Housing and Urban
thereby rehabilitate themselves as early as Development Coordinating Council (HUDCC) and
possible. In all cases, the increase in the value of the National Housing Authority (NHA), in
the affected property brought about by the coordination with the LGUs and IAs concerned,
government project itself shall not be considered in shall establish and develop resettlement sites for
the determination of the purchase price. informal settlers, including the provision of
adequate basic services and community facilities,
As provided in Section 6.3 of this IRR, the Terms of in anticipation of informal settlers that have to be
Reference, which shall be used by the GFIs and removed from the ROW or site of future
IPAs in the determination of the market value of the infrastructure projects, pursuant to the provisions of
land, should include the applicable standards the RA No. 7279. Whenever applicable, the
stated in this Section. concerned LGUs shall provide and administer the
resettlement sites.
Section 13. ECOLOGICAL AND
ENVIRONMENTAL CONCERNS In case the expropriated land is occupied by
informal settlers who are unable or refuse to
As provided in Section 8 of the Act, in cases demolish their structures and other improvements
involving the acquisition of ROW, site or location for therein despite the writ of possession issued by the
any national government infrastructure project, the court under Section 7 of this IRR, the court shall
IA shall take into account the ecological and issue the necessary writ of demolition for the
environmental impact of the project. Before any purpose of dismantling any and all structures found
national government project could be undertaken, within the subject property. The IA shall take into
the IA shall consider environmental laws, land use account and observe diligently the procedure
provided for in Sections 28 and 29 of RA No. 7279. shall be recovered partly or fully by the proponent
from the tolls, fees, or tariffs to be charged to the
Immediately after the project approval by the users of the completed project. For budgeting
appropriate agency, the IA shall notify the HUDCC purposes, the ROW costs of projects without any
of its proposed project which may require the benchmark prices may be based on the BIR zonal
acquisition of ROW that may cause the values times a factor not exceeding two (2).
displacement or relocation of informal settlers.
For projects that have undergone pre-feasibility or
Section 15. APPROPRIATIONS feasibility study only, the proposed budget or
appropriations for the replacement cost of affected
As provided in Section 10 of the Act, the structures or improvements may be based on
government shall provide adequate appropriations benchmark unit costs which are derived from
that will allow the concerned IAs to acquire the industry standards and accepted by the DPWH. An
required right-of-way, site or location for national example of a benchmark unit cost is cost per
government infrastructure projects in advance of square meter of floor area of a house or building.
the project implementation. These appropriations
shall include the funds needed to cover the For projects that have undergone detailed
following expenses for activities directly related to engineering design, the proposed budget or
right-of-way acquisition for the projects as provided appropriations for the replacement cost of affected
in this Act: Cost of parcellary surveys and appraisal structures or improvements shall be based on
of properties affected by the detailed estimates, including bill of
projects;cralawlawlibrary materials/quantities, in accordance with the
standards and procedures set by the DPWH.
Compensation for the project-affected land,
structures and improvements, including relocation Section 16. DEVELOPMENTS WITHIN RIGHT-
or replacement of compensable utilities, crops and OF-WAY
trees;cralawlawlibrary
As provided in Section 11 of the Act, upon the
Cost of development and implementation of approval by the Head of the IA concerned of an
resettlement projects covered by this Act, including infrastructure project with funding authorized in the
planning, social preparation, in accordance with General Appropriations Act and with defined ROW,
HUDCC design standards and costings. Where no National Government Agency or LGU shall,
necessary, this may include land development and within two years from date of notice of taking, allow
housing construction, provision of basic services within the said ROW any development or
and community facilities, livelihood restoration and construction, or issue any building, construction,
improvement, and other activities under the development or business permit, which is contrary
resettlement action plan in coordination with to the approved plans and purposes of the project,
concerned government agencies; and unless explicitly authorized by the Head of the IA
for justifiable reasons.
Related expenses of the IA, including CGT in the
case of negotiated sale under Section 6 of this IRR, For this purpose, the date of notice of taking is the
DST, transfer tax and registration fees for the date of the letter issued by the IA to the concerned
transfer of titles, and other relevant administrative landowners, after the approval of the LAPRAP as
expenses for right-of-way management, including part of the detailed engineering design, informing
the cost of ECC application. For PPP projects, the them of the intent of the IA to acquire their lands for
IA may, as part of the contract terms and the ROW.
conditions, require the project proponent
to: advance the funds covering the cost of the Once the notice of taking is issued, any new
ROW which shall be reimbursed later by the IA, structure or improvement to an existing one on the
except for unsolicited proposals; or land covered by the notice shall not be
compensated.
finance the ROW cost for the government which
In the same manner, no informal settlers will be ACQUISITION PROCESS 2.1 ROW Action Plan
eligible for compensation if their structures are built as part of Project Feasibility Study and Design
after the cut-off date for entitlements. In this IRR, 2.2 Preparation of LAPRAP 2.3 Environmental
the "cut-off date" refers to the first day of census Impact Assessment (EIA) 2.4 Conduct of
undertaken as part of LAPRAP preparation after Parcellary Survey 2.5 ROW Acquisition through
both the project approval by the IA and Detailed Donation 2.6 ROW Acquisition through
Engineering Design. Negotiated Sale 2.7 Determination of
Compensation Price Offer for Negotiated Sale-
Section 17. RIGHT-OF-WAY SURVEY based on Market Value of Land, Replacement Cost
DOCUMENTS FOR ACQUIRED PROPERTIES of Structures and Improvements, and Market Value
of Crops and Trees 2.8 Determination of
The IA shall submit the relevant documents Package of Compensation and Entitlements to
indicating the survey limits for the lands acquired Project-Affected Persons (PAPs) 2.9 Use of
for ROW of infrastructure projects to the LGU GFIs and IPAs in Determining Price Offer and
concerned for information and reference in Compensation Package for Negotiated Sale 2.9
development planning, taxation, and other Determination of COT and Other Taxes and Fees
purposes. 2.10 Preparing Budget and Appropriations for ROW
Acquisition - covering all Relevant Expenses - at
Section 18. AGENCY MANUAL OF Preliminary Stage (ROW Action Plan) and Final
PROCEDURES FOR ROW ACQUISITION Stage (based on Price Offer and Relevant
Expenses) 2.11 Execution of Deed of Sale
To provide clear, specific, and operational 2.12 Transfer of Title/Tax Declaration 2.13
guidelines for the efficient acquisition of ROW for Payments to Owners and PAPs 2.14 ROW
its infrastructure projects, each IA shall prepare and Acquisition through Expropriation 2.15 Obtaining
implement its own "Manual of Procedures for ROW and Implementing Writ of Possession and Permit to
Acquisition" (Manual). Enter Sale 2.16 Relocation of PAPs based on
LAPRAP 2.17 Clearing of
Said Manual must be consistent with the provisions Structures/Improvements and Crops/Trees within
of the Act and this IRR and shall be customized to ROW 2.18 Management of ROW including
the particular requirements and systems for ROW Documents 3. PROCEDURES FOR OTHER
acquisition of the IA. The IA Manual shall serve as CASES 3.1 ROW Acquisition for Lands under
the standard or uniform reference for the specific CA No. 141 3.2 ROW Acquisition through
rules, processes, standard documents, and Exchange or Barter 3.3 ROW Acquisition
template forms to be used by the IA and its through Easement of ROW 3.4 Acquisition of
concerned central and field offices in the Subsurface ROW 3.5 Other Special Cases
acquisition of ROW. The IA Manual shall also be APPENDICES RA No. 10752 IRR of RA No.
used by property owners as their reference on the 10752 CA No. 141 Relevant
requirements and procedures to be followed to Department/Agency Orders ROW Action Plan
facilitate ROW acquisition, while ensuring that they Preliminary Cost Estimates: for Land,
obtain due process and fair compensation. Finally, Structures/Improvements and Crops/Trees
the IA Manual shall serve as a guide for the GFIs ROW Action Plan Data Checklist ROW Action
and IPAs to be engaged by the IA in determining Plan Report Outline Templates for
the appropriate price offers to property owners Environmental Scoping, EIA, Environmental
affected by ROW acquisition. Management Plan (EMP), Screening, Initial
Environmental Examination (IEE) Checklist
The IA Manual shall include the following basic ROW Action Plan Final Cost Estimates: for Land,
content, as adapted with modifications from the Structures/Improvements and Crops/ Trees
DPWH Manual:ChanRoblesVirtualawlibrary Parcellary Survey ROW Land Data ROW
Compensation Matrix Deed of Donation
1. INTRODUCTION 1.1 Purpose of the Template Deed of Sale Template Deed of
Manual 1.2 Coverage and Applications of the Exchange or Barter Template Template
Manual 2. PROCEDURES FOR THE ROW Agreement to Demolish and Remove
Improvements (ADRI) Quit Claim Deed As provided in Section 16 of the Act, RA No. 8974
Template Easement of ROW Agreement is hereby repealed and all other laws, decrees,
Template Permit to Enter Template orders, rules and regulations or parts thereof
WORKFLOW CHARTS Overall Process Flow inconsistent with this Act are hereby repealed or
Project Identification, Feasibility Study, Design and amended accordingly.
ROW Action Plan Preparation EIA Conduct of
Parcellary Survey Preparation of LAPRAP Section 23. EFFECTIVITY
ROW Acquisition through Donation ROW
Acquisition through Negotiated Sale Preparation This IRR shall take effect fifteen (15) days following
of Deed of Absolute Sale Transfer of Title/Tax its publication in at least two (2) newspapers of
Declaration ROW Acquisition through general circulation.
Expropriation ROW Acquisition for Lands under
CA No. 141 ROW Acquisition through Exchange Issued this ___ day of ______________, 2016.
or Barter ROW Acquisition through Easement of
ROW Acquisition of Subsurface ROW
COMMITTEE FOR THE IRR OF RA NO. 10752
Clearing of ROW Processing of Title Documents
Management of ROW
The IA shall ensure that its Manual includes,
among other things, faithful and prompt compliance JOSEPH EMILIO A. ABAYA
with the prescribed payment procedures under Secretary, Department of Transportation
Section 6.10 of this IRR. and Communications
Member (Sgd.) ZENAIDA Y. MONSADA
Section 19. TRANSITORY CLAUSE Secretary, Department of Energy
Member (Sgd.) EMMANUAL L. CAPARAS
As provided in Section 14 of the Act, the provisions Secretary, Department of Justice
of this IRR shall apply to all ROW transactions, Member FLORENCIO B. ABAD
except ongoing transactions which, as of the Secretary, Department of Budget
effectivity of this Act, have already reached a and Management
written agreement as to the price between the IA Member (Sgd.) EMMANUEL F. ESGUERRA
and the property owner. Secretary of Socio-Economic Planning and
Director General, National Economic and
Section 20. SANCTIONS Development Authority
Member (Sgd.) CHITO M. CRUZ
As provided in Section 12 of the Act, violation of Chairperson, Housing and Urban
any provision of the Act shall subject the Development Coordinating Council
government official or employee concerned to Member (Sgd.) ROGELIO L. SINGSON
appropriate administrative, civil and/or criminal Secretary, Department of Public Works and
sanctions, including suspension and/or dismissal Highways
from the government service and forfeiture benefits Chairperson
in accordance with the provisions of the law.

Section 21. IRR AMENDMENTS

ANNEXA
The IRR Committee constituted pursuant to TEMPLATE TERMS OF REFERENCE
Section 13 of the Act may be reconvened by its FOR PROPERTY APPRAISAL SEVICES
Chairperson, at his initiative and/or upon the PURSUANT TO RA NO. 10752
recommendation of any of its members, to
formulate and prescribe amendments to this IRR As basis for the procurement of the services of a
consistent with the letter and spirit of the Act. Government Financial Institution (GFI) or
Independent Property Appraiser (IPA) to determine
Section 22. REPEAL the appropriate price of properties to be offered to
the property owner through negotiated sale under
Section 6 of the Implementing Rules and latest approved land use plan and/or zoning
Regulations (IRR) of Republic Act (RA) No. 10752 ordinance, if any, of the city or municipality
(The Right-of-Way Act), the GFI/IPA shall provide concerned.
the appraisal services for the purpose of acquisition
of private properties for national government The development cost for improving the
project under this Terms of Reference land;cralawlawlibrary
(TOR): Background: Insert a brief description and
map of the project for which the Right-of-Way This shall be based on, among other things, the
(ROW)is required. Insert the Parcellary Survey records and estimates of the City or Municipal
Report for the project indicting the properties Assessor concerned, GFI or IPA for similar or
affected by the ROW. comparable lands.

Objectives of the Services (Include all that The value declared by the owners;cralawlawlibrary
apply): To determine the fair market value of the
land, the replacement cost of This shall be based on the value shown in the
structures/improvements, and the fair market value owners' latest Tax Declaration Certificates or Sworn
of crops and trees in the properties described Statements.
above as affected by the ROW requirement of the
said project To recommend the appropriate price The current selling price of similar lands in the
offer for negotiated sale of the affected properties vicinity;cralawlawlibrary
based on the above. To provide technical
assistance, if necessary, to the IA on the This shall be based on, among other things, the
negotiation proceedings, including possible latest records on Deeds of Sale for similar lands in
administrative and judicial processes. the office of the Register of Deeds concerned.

Desired Outputs – The GFI/IPA is expected to The reasonable disturbance compensation for the
deliver to the IA an Appraisal Report that contains removal and/or demolition of certain improvements
the following (Include all that apply): Estimated on the land and for the value of improvements
market value of the land under consideration. thereon;cralawlawlibrary
Estimated replacement cost of structures and
improvements therein. Estimated market value of This shall consider, among other things, the
crops and trees therein. Recommended total price replacement cost of improvements at current
offer for negotiated sale for the properties affected. market prices as provided in Section 6.6 of this
Other reports/advisories as needed in the IRR.
negotiation proceedings.
The size, shape or location, tax declaration and
The Appraisal Report must be signed by a real zonal valuation of the land;cralawlawlibrary
property appraiser or valuer duly licensed by the
Professional Regulation Commission (PRC) and These shall be based on, among other things, the
registered with the Professional Regulatory Board latest records on Deeds of Sale in the Register of
of Real Estate Service (PRBRES) pursuant to RA Deeds, tax declaration by the City or Municipal
No. 9646 (Real Estate Service Act of the assessor, zonal valuation of the BIR for
Philippines, 2009). comparable properties.

Standards and Specifications – In providing the The price of the land as manifested in the ocular
services and delivering the desired outputs, the findings, oral as well as documentary evidence
GFI/IPA shall observe the following standards and presented; and
specification listed under Section 7 of RA No.
10752: The classification and use for which the Such facts and events so as to enable the affected
property is suited;cralawlawlibrary property owners to have sufficient funds to acquire
similarly situated lands of approximate areas as
This shall be based on, among other things, the those required from them by the government, and
thereby rehabilitate themselves as early as – Reproduction of gathered documents for
possible. attachments.
Duration of Services and timetable for Delivery – Compilation of write-ups and attachments for
of Outputs – The GFI/IPA shall perform the submission. 8th Week Review of Revised Draft
services and deliver the said outputs to the IA Report
within (insert number of calendar days) days from – Review of findings on the Draft Report
its receipt of the IA's Notice to Proceed for the – Preparation of Revised Draft Report considering
Agreement for these services, and according to the comments/corrections.
following schedule (example shown – Submission of Revised Draft Report.
below):ChanRoblesVirtualawlibrary 9th Week Final Report/Output – Six (6) Copies of
Report
Phases Timeline Deliverables Remarks Pre-Project – Review and reproduction of Revised Draft Report
Start-up (1st Week) Planning Framework and submission as Final Appraisal Report (6
– Conferences/meetings copies)
– Confirmation of Proposal (If IA is engaging an IPA) Qualification of IPA –
– Consolidation and review of documents An IPA must meet the following criteria to qualify for
Documents needed: Project Layout/Survey Plans, the consulting services: The IPA must be in the list
Parcellary Plans indicating the width of the of the BSP or a professional association of
highway, Title and Tax Declaration per lot. Pre-Site appraisers recognized by the BSP, provided, that
Visit 2nd week Site Familiarization an IPA not yet included in the list shall not be
– Meetings with Barangay Officials barred from joining the procurement for such
– Establishment of Field Office services; and provided further that, prior to award
– Pre-Site Inspection of the contract, such IPA shall be required to submit
– Securing Other References (Tax Map/ Tax a proof that they are already included in the list.
Declaration) from the Assessors On-Site
Investigation The IPA must comply with the experience and other
and Analysis 3rd & 4th Weeks Property eligibility requirements provided in R.A 9184 and its
Identification and Site Analysis IRR, including the registration and license required
– Identification of each property on ground versus for a Real Estate Appraiser.
plans submitted, that includes its location,
ANNEX B
accessibility, terrain, developments and
ILLUSTRATIVE EXAMPLE OF COMPUTATION
improvements thereon.
FOR CAPITAL GAINS TAX
– Definition of physical features of improvements
and their conditions and measurements.
– Counts of considerable trees within each affected Given:
lot and other structures on site.
– Investigation, queries and validation of current Net Actual Consideration (NAC) offered by the
prices of lots and sold properties in the project Implementing Agency (IA) to the property owner
vicinity. based on, among others, the Fair Market Value
– Canvas of current construction materials in the (FMV) of the property as determined by the
locality. On Site Validation of Ownership GFI/IPA, and accepted by the IA = PhP1,000,000.
5th Week Documentations of Properties Affected
– Securing or verification of documents (Titles) with Applicable Capital Gains Tax= 6%
Registry of Deeds and other agencies concerned
Off Site (Office) 6th 7 Weeks Write-ups and Questions:
Preparation of Draft Report
– Consolidation and analysis of gathered data and (a) What is the Net Amount that the IA should pay
information. to the property owner? (b) What is the Gross
– Establishing benchmarks of valuation and Amount to be appropriated and allocated by the IA
calculations of market value per property to cover the negotiated sale? (c) How much
– Composition and printing of Draft Report is the Capital Gains Tax (CGT) to be paid by the IA
7th Week Review of Draft Report to the BIR for the account of the owner?
Answers:

(a) Net Amount to be paid to the property owner =

NAC = PhP1,000,000. (b) Gross Amount to
be appropriated/allocated by the IA =Actual
Consideration (AC): AC = NAC/(100%-6%)
= NAC/94% = PhP1,000,000/0.94 = PhP1,063,830.
(c) CGT to be paid by the IA to BIR for the account
of the owner: CGT = 6% of GSP = 0.06 x
PhP1,063,380 = PhP63,830.