Softcopy of NRAM

or you may access the manual through: www.reid.ph/nram

You may access the workshop references through: www.reid.ph/nram

WELCOME REMARKS

Engr. Robert Suguitan

Senior Deputy Administrator, National Irrigation Administration

​

​

OPENING REMARKS

Prof. Ronilo M. Balbieran

Team Leader and Vice President, REID Foundation

​

​

Overview of RA 10752

and the Legal Framework

Esperry John Quizon

REID Foundation

​

​

OUTLINE OF THE PRESENTATION

​

Legal Framework

Objectives of RA 10752

Issues in Previous ROWA Process Addressed by New ROWA Process/Manual

​

Overall Process of ROW Acquisition

​

Pre-Acquisition Activities

ROW Action Plan

Parcellary and As-Built Survey

​

Appraisal of Properties:

Use of GFIs and IPAs in Property Appraisal

Appraisal of Land: Standards

Appraisal of Crops/Trees

Appraisal of Structures/Improvements Based on Replacement Cost

Procurement of IPA/GFIs

​

​

Modes of ROW Acquisition

ROW Acquisition thru Donation

ROW Acquisition thru Negotiated Sale

ROW Acquisition thru Expropriation

Overview of Other Modes of ROW Acquisition

ROW Appropriations

​

Processing Payment for ROW Claims

LEGAL FRAMEWORK

​

• MAIN LEGAL BASIS:

​

• Republic Act (R.A) No. 10752 dated March 07, 2016,

​

• Implementing Rules and Regulations (IRR) of RA 10752 dated May 25, 2016

​

​

​

​

​

LEGAL FRAMEWORK

• OTHER LEGAL REFERENCES:
• RA 12001, “Real Property Valuation and Assessment Reform Act”
• RA 9184, “Government Procurement Reform Act,” and its IRR
• CA 141, “Public Land Act,” as amended by PD 631 and PD 1361
• RA 6957, as amended by RA 7718, “Build-Operate-and-Transfer Law,” and its IRR
• RA 7279, “Urban Development and Housing Act of 1992,” and its IRR.
• RA 7160, “Local Government Code of 1991”
• RA 8371, “Indigenous People’s Act of 1997”
• PD 1586, “Philippine Environmental Impact System”
• PD 1067, “Philippine Water Code”

OBJECTIVES OF RA 10752

​

• To significantly expedite implementation of infrastructure projects.

​

• To provide clearer, fairer, and simpler terms for ROW acquisition (ROWA) for property owners and Government implementing agencies
• To fast track and simplify negotiated purchase as preferred mode of ROW acquisition
• To streamline expropriation process in case negotiated sale fails.

​

• To make Government budget preparation for ROW and project implementation more systematic and predictable.

​

MAJOR ISSUES UNDER PREVIOUS ROWA PROCESS ADDRESSED �BY NEW ROWA PROCESS/MANUAL

MAJOR ISSUES UNDER PREVIOUS ROWA PROCESS ADDRESSED �BY NEW ROWA PROCESS/MANUAL

MAJOR ISSUES UNDER PREVIOUS ROWA PROCESS ADDRESSED �BY NEW ROWA PROCESS/MANUAL

GENERAL PRINCIPLES OF ROWA PROCESS:

• Applicable to both foreign-assisted and locally funded infra projects.
• Applicable to new construction, expansion/improvement
• Undertake Pre-Acquisition Process prior to ROW Acquisition
• Preliminary ROW requirement obtained from Feasibility Study (FS)
• Final ROW requirement obtained from DES Stage
• Final list of affected persons from Validated LARP
• ROW Acquisition Process
• NIA must obtain at least a Permit to Enter (PTE), notarized DAS, Deed of Donation, or Writ of Possession (WOP), Annotated Title of partially acquired lots before issuing the Notice of Award (NOA) for a contract
• Utilities must be cleared from the ROW before issuance of the NOA
• IA shall properly file all documents pertaining to ROW acquisition
• IA shall prepare the final as-built ROW Plans upon project completion

​

OPEN FORUM

PRE-ACQUISITION ACTIVITIES

Secure ECC or CNC | Formulate ROW Action Plan (LARP) to obtain ROW Budget

PRE-ACQUISITION PROCESS:

• FEASIBILITY STUDY
• Secure ECC or CNC
• Prepare ROW Action Plan (FS LARP) to obtain ROW Budget.�Main components of LARP Budget computation:
• Land Appraisal to obtain current market value
• Replacement cost study for structure and improvements
• Valuation of trees and crops to obtain current market value
• Cost for relocating informal settlers and livelihood restoration
• DETAILED ENGINEERING DESIGN STUDY
• Undertake Parcellary Survey
• Update LARP (DES LARP) to finalize ROW Cost
• Validate DES LARP prior to implementation

ACQUISITION ACTIVITIES

ROW ACQUISITION PROCESS

• REGULAR MODES OF ACQUISITION:
• Donation may be explored as first mode of acquisition
• If donation is not feasible, Negotiated Sale shall be pursued
• If within 30 days the owner does not accept the price offer, the NIA may initiate Expropriation Proceeding
• OTHER MODES OF ACQUISITION
• Acquisition of Properties under CA 141
• Exchange or Barter
• Easement of ROW
• Acquisition of Subsurface ROW
• Other modes authorized by law

PREPARE LARP

�� � �PREPARE FS ROW ACTION PLAN (FS LARP)

• Main Components of the FS LARP:
• Stakeholder Engagement – Consultation with directly affected persons
• Inventory of Losses (preferably using drones)
• Socio-Economic Profiling – Socio-economic surveys
• Replacement Cost Study – Comparative method only
• Livelihood Restoration – Available livelihood programs
• Relocation and Resettlement – Possible relocation sites
• Implementation schedule – From LARP preparation to Implementation (ROWA)
• Institutional arrangements – Partnership plan with other NGAs and concerned LGUs
• LARP Budget – For budgetary purpose only

�� � �PREPARE FS ROW ACTION PLAN (FS LARP)

• Main activities undertaken as part of FS LARP preparation:
• IEC Meetings with City/Municipal LGUs
• Barangay-level Stakeholder Consultation Meetings (To disclose project and declare cut-off date for informal sector)
• Census and tagging of structures based on FS alignment
• Structure mapping – GIS based
• Socio-Economic Survey (SES)
• Focus Group Discussions
• Land appraisal and detailed measurement surveys for structures and improvements(by IPA) – By land categories
• FS level cost estimates for structures, cost for trees and crops (by IPA or in-house if with capability and expertise)
• Relocation Options – Including number of HH to be relocated, possible KSA
• Available Livelihood Options – From receiving LGU, DTI, DOLE, TESDA, etc.

​

�� � �PREPARE DES ROW ACTION PLAN (DES LARP)

• Main Components of the DES LARP:
• Parcellary Survey
• Stakeholder Engagement – Consultation with directly affected persons
• Updated census and tagging (if there are changes due to design)– Ground surveys
• Updated Socio-Economic Profile – Only for newly affected persons; to be updated if FS SES is more than 2 yrs)
• Replacement Cost Study – Detailed with basic plans and BOQs
• Livelihood Restoration – Livelihood programs based on profiling
• Relocation and Resettlement – Final relocation sites
• Implementation schedule – From LARP preparation to Implementation (ROWA)
• Institutional arrangements – Partnership plan with other NGAs and concerned LGUs
• LARP Budget – Values for land and structures compensation may be used as basis for Offer

​

��� PREPARE DES ROW ACTION PLAN (DES LARP)

• Main activities undertaken as part of DES LARP preparation:
• IEC Meetings with City/Municipal LGUs
• Parcellary and As Built Survey (PAB) based on final ROW
• Census tagging based on as built survey
• Detailed Measurement Survey (DMS) of structures based on As-Built Survey and tagging of structures
• Socio-Economic Survey (SES) – depends on validity of FS LARP data (undertake if FS data more than 2 years)
• Land appraisal by IPA/GFI
• Replacement cost computation for structures using BOQ method by IPA/GFI
• Current market value for trees and crops by IPA/GFI
• Relocation sites for informal settler families (if any) – arranged with key shelter agency in coordination with DHSUD
• Livelihood restoration and improvement programs – arranged with LGUs and other national government agencies such as DTI, Land Bank, DBP, DOLE, TESDA

​

��� LARP VALIDATION AND IMPLEMENTATION

• LARP Validation:
• Validation of land appraisal by GFI/Implementing Agency (Optional)
• Validation of BOQs prepared by IPA/GFI (Optional)
• Finalization of agreement with key shelter agencies regarding provision of relocation sites for informal settler families (if any)
• Validation of relocation beneficiaries by LGU/LIAC
• Finalization of livelihood restoration and improvement programs – preferably with signed agreements with LGUs and other national government agencies such as DTI, Land Bank, DBP, DOLE, TESDA
• Finalization of Cost to implement LARP
• Approval of parcellary survey and as built plans
• LARP Implementation/ROWSA
• Sending of Notice of Taking (NoT)
• Sending of Letter Offer
• Relocation of informal settler families
• ​

DIFFERENCE BETWEEN FS LARP VS DES LARP

��� LARP APPROVAL PROCESS

For Locally Funded Projects:

-If there are informal settler families to be affected by the Project, may be discussed with the Local Interagency Committee (LIAC) for their review and cooperation

-Submit through a designated office for final approval by the NIA Administrator

For Foreign-Assisted Projects:

- Same as above;

-Following the NIA Administrator’s Approval

-Submit to lending agency for their review and concurrence

​

​

UTILITIES RELOCATION

���ASSESSMENT OF UTILITIES RELOCATION

Feasibility Study Phase: Preliminary Identification and Cost Estimation

​

1. Preliminary Assessment
1. Identification of assets (power lines, pipelines, poles and cables, drainage, others)

​

2. Engage Utility Companies

​

3. Conduct Table/Desk-Based Cost Estimation

• Average costs for relocating similar utility types
• Standard rates for labor, materials, and equipment

​

4. Submission for NIA/NEDA review and approval

���ASSESSMENT OF UTILITIES RELOCATION

Detailed Engineering Design Phase: Preliminary Identification and Cost Estimation

​

1. Site Validation

​

2. Identify relocation requirements

• Fully relocated outside the ROW / within it
• Temporary infrastructure required to maintain services

​

3. Develop Detailed Relocation Plan

​

4. Precise Cost Estimates from Utility Companies

​

5. Finalize Contracts and Agreements

PARCELLARY AND

AS-BUILT SURVEY

��� PARCELLARY AND AS BUILT SURVEY

As Built Surveys determine exact coordinates, of all structures along the Project ROW. The affected area and measurement obtained through the detailed measurement survey will be the basis for basic plans and Bill of Quantities (BOQ). The conduct of as-built surveys are supervised by a duly registered licensed Geodetic Engineer.

Outputs:

• As Built Survey Plans - Normally drawn in a scale of 1:1,000 and printed on A3 size paper. It shows the location of the affected structures in reference to land
• Sketch Plans – Shows the affected area with structure plan superimposed on the Parcellary Plan

​

��� PARCELLARY AND AS BUILT SURVEY

Parcellary Surveys are conducted in order to identify the affected lots within the right-of-way (ROW) limits as indicated in the approved detailed engineering design plans. The conduct of parcellary surveys and preparation of drawings and report are supervised by a duly registered licensed Geodetic Engineer.

​

Outputs:

• Parcellary Survey Plans - Normally drawn in a scale of 1:1,000 and printed on A3 size paper. It shows the design alignment; ROW boundary for the project; Affected lots showing the name of the owner/claimant, lot number, affected area, and remaining area in square meters.
• Subdivision Plans – Plans reflecting the segregated parcels (acquired and remaining) after acquisition

��� PARCELLARY SURVEY

Parcellary Index Map Level 3

��� PARCELLARY SURVEY

Sample Subdivision Plan

AS BUILT SURVEY

As Built Index Map Level 3

AS BUILT SURVEY

Sample Sketch Plan

QUIZ TIME TO CHECK YOUR KNOWLEDGE!!!

PROPERTY APPRAISAL

APPRAISAL OF PROPERTIES: GENERAL

• Done at three levels:
• During FS – Preliminary Appraisal – For budgetary purpose, and may use comparative method (e.g., per sqm basis)
• During DES – Detailed Appraisal – may be used for offer letter
• During LARP Validation - Necessary if DES appraisal has lapsed more than one (1) year from sending of offer letter, and must be reviewed and concurred by a licensed appraiser
• Appraisal covers:
• Land
• Structures and Improvements
• Crops and Trees
• Based on RA 10752 and its IRR, for negotiated sale, appraisal considers:
• Current market value of land
• Replacement cost (New) of structures and improvements
• Current market value of crops and trees

APPRAISAL OF LAND: STANDARDS FOR�ASSESSMENT FOR NEGOTIATED SALE (IRR SEC. 12 / SEC 2.14 NRAM)

1. Classification and use for which the property is suited based on, among other things, land use plan and/or zoning ordinance.
2. Development cost for improving the land based on, among other things, records/estimates of City/Municipal Assessor, GFI or IPA for similar or comparable lands;
3. Value declared by the Owners based on the value shown in the Owner’s latest Tax Declaration Certificates or Sworn Statements;
4. Current selling price of similar lands in the vicinity based on, among other things, records on Deeds of Sale for similar lands in the Register of Deeds.
5. Reasonable disturbance compensation for removal/demolition of improvements on the land and for value of improvements considering, among other things, the replacement cost at current market prices. (based on IRR Sec 6)
6. Size, shape or location, tax declaration and zonal valuation of land based on, among other things, records on Deeds of Sale in the Register of Deeds, tax declaration by the City/Municipal Assessor, BIR zonal valuation for comparable properties.

APPRAISAL OF LAND: STANDARDS FOR�ASSESSMENT FOR NEGOTIATED SALE (IRR SEC. 12 / SEC 2.14 NRAM)

g. Price of the land as manifested in ocular findings, oral as well as documentary evidence.

h. Such facts and events so as to enable affected property owners to have � sufficient funds to acquire similarly situated lands as those required from them by govt, and thereby rehabilitate themselves as early as possible.

​

Notes:

• Increase in value of affected property brought about by the govt project itself shall not be considered in determination of the purchase price.

​

• Terms of Reference to be used by GFIs/IPAs in the determination of the market value of the land, should include the applicable standards above.

APPRAISAL OF STRUCTURES/IMPROVEMENTS BASED ON REPLACEMENT COST (IRR 6.6 / NRAM SEC 2.10)

• Replacement Cost of structure/improvement affected by ROW shall be based on current market prices of materials, equipment, labor, contractor’s profit, overhead, and other costs associated with provision of similar asset in place of affected asset.
• No deduction for depreciation.
• Replacement Cost should be based on pre-damaged/pre-depreciated condition. Replacement structure has to perform same functions and meet performance specs as original structure; it does not have to be an exact copy of the original asset.
• NIA may directly determine Replacement Cost of structures and improvements, using DPWH standards (e.g., DO 197, series of 2016) for estimating civil works costs – since this is part of the core area of competence of the DPWH.

APPRAISAL OF STRUCTURES/IMPROVEMENTS BASED ON REPLACEMENT COST (IRR 6.6 / NRAM SEC 2.10)

• If engaged by NIA to determine Replacement Cost, GFI/IPA may use valuation standards of the Professional Regulatory Board of Real Estate Service under PRC.
• NIA shall prepare the basic plan and performance-type specs for structure to be replaced, considering its original condition. These shall indicate the following:
• Main function or purpose of the structure – e.g., residential.
• Basic configuration and dimensions of structure – e.g., two-storey house with total floor area of 150 sq m
• Major structural features – e.g., concrete and wooden structure, with GI roof.

APPRAISAL OF STRUCTURES/IMPROVEMENTS BASED ON REPLACEMENT COST (IRR 6.6 / NRAM SEC 2.10)

• Replacement Cost shall be composed of Estimated Direct Cost (EDC) and Estimated Indirect Cost EIC) of replacement structure – at current market prices (DO 197-2016)
• Estimated Direct Cost (EDC)
• Current market cost of materials:
• Cost at source
• Expenses for hauling to project site
• Handling expenses
• Storage expenses
• Allowance for waste and/or losses, at 5% of materials requirement.
• Current market cost of labor
• Salaries and wages within DOLE limit
• Fringe benefits - leaves, WCA, SSS, allowances, 13th month pay, bonuses, etc.
• Equipment Expenses:
• Rental of equipment – usually ACEL
• Mobilization and demobilization – 1% of EDC
• Permits and Clearances - e.g., Building Permit
• Other Expenses – e.g., relocation of fixed equipment

APPRAISAL OF STRUCTURES/IMPROVEMENTS BASED ON REPLACEMENT COST (IRR 6.6 / NRAM SEC 2.10)

• Estimated Indirect Cost EIC) :
• Overhead Expenses not exceeding 8% of EDC:
• Engineering and Administrative Supervision
• Transportation allowances
• Premium on Contractor’s All Risk Insurance
• Financing Cost, e.g., premium on bonds.
• Contingencies and Miscellaneous not exceeding 4% of EDC.
• Contractor’s Profit Margin not exceeding 8%-10%.

APPRAISAL OF STRUCTURES/IMPROVEMENTS BASED ON REPLACEMENT COST (IRR 6.6 / NRAM SEC 2.10)

• EIC not to exceed the following OCM and Profit

​

​

​

​

​

​

​

​

• For projects with PFS or FS only, estimated replacement cost of structures/improvements may be based on benchmark unit costs derived from industry standards and accepted by DPWH – e.g., cost/square m of floor area of house or building (IRR Sec. 15).
• For projects with DES, estimated replacement cost shall be based on detailed estimates, including bill of materials/quantities (IRR Sec. 15)
• If ROW acquisition is considerably delayed or there is an abnormal increase in prices after the replacement cost has been estimated, the original replacement cost estimates should be updated to reflect the present market prices.

��� APPRAISAL OF CROPS/TREES (IRR 6.6 / NRAM SEC 2.11)

• Basis: current market value of crops and trees
• NIA may engage a GFI/IPA to do the appraisal of crops and trees.
• NIA may also directly do the appraisal of crops and trees if it has the in-house capability to do so, using latest applicable established market values of DA (crops), PCA (coconut), DENR (perennials and timber trees), DOF, LGUs (Assessors).
• For crops – valuation can be done using cost approach on per hectare basis. Using this approach, direct and indirect cost are considered. From crops nearing harvest, the value should be that of the prevailing market price.
• For fruit trees – the three approaches to value may be used i.e. Market Approach, Cost Approach and Income Approach. For individual trees, Schedule of Market Values (SMV) from Assessor’s Office or from the local DA Office may be utilized.

​

PROCUREMENT OF GFIS/IPAS

USE OF GFIS/IPAS IN PROPERTY APPRAISAL

• To determine the appropriate price offer, NIA may engage:
• Govt Financial Institution (GFI) with adequate experience in property appraisal selected by NIA through competitive process, or
• Independent Property Appraiser (IPA) accredited by: (1) BSP or (2) Professional association of appraisers recognized by BSP to be procured by NIA under RA 9184 (as consulting services).
• BSP and professional association shall provide lists of IPAs upon NIA request.
• Whenever applicable, priority shall be given to engagement of GFI.

​

USE OF GFIS/IPAS IN PROPERTY APPRAISAL

• NIA shall prepare Terms of Reference (TOR) for the appraisal services (see next slide).
• NIA may use GFI/IPA appraisal reports as a basis for the NIA’s price offer for negotiated sale. NIA is encouraged to develop its in-house personnel capable of validating appraisal reports.
• Rationale for using GFIs/IPAs:
• Addresses previous reluctance and difficulty of NIAs to negotiate price upwards (2nd offer under old law) for lack of capacity/competence, no strong legal cover to hire IPAs, and fear of disallowance/graft charge.
• GFIs/IPAs can provide third-party/objective professional appraisal services.
• In line with global best practice.

​

USE OF GFIS/IPAS IN PROPERTY APPRAISAL

• Preparation of Terms of Reference (TOR)
• Background of the project for which the ROW is required, and the objectives of the property appraisal services to be provided by the GFI or IPA.
• Desired outputs to be delivered by the GFI or IPA, their description and degree of detail - e.g., LARP, estimated current market value of the land under consideration, replacement cost of structures and improvements therein, and current market value of crops and trees therein.
• Standards and specifications to be observed by the GFI or IPA in providing the services and producing the desired outputs, which shall include those listed under Section 12 of RA 10752-IRR, as may be applicable.
• Duration of the services and timetable for the delivery of outputs by the GFI or IPA.
• Qualifications of the GFI or IPA to be engaged.

​

Appraisals or valuations are done at three stages of project development – FS, DED, and RAP Validation stages. First, a preliminary appraisal of the affected property is done during FS stage. Then, a more detailed property appraisal is conducted during DED stage. This detailed property appraisal is then verified or validated during RAP Validation stage.

​

​

PROCURING GFI APPRAISAL SERVICES

• If the NIA decides to engage the property appraisal services of a GFI to determine the appropriate price of a property to be offered to the property owner through negotiated sale, the NIA shall conduct a competitive selection process.
• At least the two GFIs acknowledged as having the mandate, capability and experience to undertake property appraisal – e.g., Land Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP).
• Requirements:

(1) The GFI has the mandate to deliver the property appraisal services required by the IO.

(2) The GFI has the absorptive capacity to perform the required appraisal services.

(3) The GFI must actually undertake the required appraisal services by administration using its own in-house manpower and resources.

• The NIA and the selected GFI shall enter into and sign an Agency-to-Agency Agreement, particularly through a Memorandum of Agreement (MOA) for the property appraisal services

USE OF GFIS/IPAS IN PROPERTY APPRAISAL

• Contents of Valuation Report:
• Cover letter.
• Narrative report containing the summary of pertinent facts and conclusion.
• Brief description of the property appraised.
• Presentation of valuation methods and conclusion of value.
• Assumptions and limiting conditions.
• Certification of the Appraiser.
• Terms of Reference (TOR), as an attachment

ACQUISITION ACTIVITIES

Regular Modes of Acquisition | Other Modes of Acquisition

REGULAR MODES OF ROW ACQUISITION

• Donation
• Negotiated Sale
• Expropriation Proceeding

​

DONATION (SEC.5 OF IRR / NRAM 2.13)

• The NIA may explore the mode of donation of the affected property
• If the property owner agrees to donate the property as ROW, a Deed of Donation shall immediately be prepared.
• The Deed of Donation shall;
• be simple and unconditional, and
• contain clauses to the effect that :
• the donation is made not to defraud the donor’s creditors, and
• the donor has, if necessary, reserved for himself enough property for his family’s subsistence, sustenance and support in case the donor is a private individual.
• The NIA shall pay the documentary stamp tax, transfer tax and registration fees, while the donor shall pay any unpaid real property tax.

​

NEGOTIATED SALE

• Prior to payment, ROW claims shall be screened, verified and validated, and the supporting documents authenticated
• Valid claims for lands, structures and other improvements shall be paid in accordance with govt rules and regulations. For negotiated sale, the NIA shall:
• Remit to the BIR the CGT, for account of the owner.
• Remit to the LGU unpaid RPT of the owner, to be deducted from the Total Price in the DOAS.
• Pay the DST to the BIR, Transfer Tax to the Provincial/City Treasurer, and Registration Fees to the Register of Deeds, funded from NIA funds outside the Total Price in the DOAS.

​

NEGOTIATED SALE: COMPENSATION PRICE �(IRR SEC. 6.1 / NRAM Sec 2.14)

• NIA shall offer (first and final) to owner, as compensation price, sum of:

a. Current fair market value of the land.

b. Replacement cost of structures and improvements.

c. Current fair market value of crops and trees

​

General rule: Offer price is based on an appraisal report of an IPA/GFI, as validated by the NIA.

​

​

NEGOTIATED SALE: PROCEDURE

(SEC. 2.14 OF NRAM)

1. Using the approved Parcellary Survey Report, Final LARP, and available GFI/IPA reports, � determine the number and names of the property Owners.

2. Prepare the Notice of Taking to each property Owner, informing it of the following:

a. The need to acquire its property to give way to a government infrastructure project.

b. The intent of the NIA to acquire the property through negotiated sale.

c. The provision in RA 10752 that no NGA/LGU shall, within 2 years from Notice of Taking, � allow any development or construction, or issue any building, construction, � development or business permit, within the ROW, contrary to the approved plans and � purposes of the project.

d. The requirement for it to submit to the NIA, within 30 days, the following documents as � proof of ownership of the property: (1) Owner’s copy of CT/OCT/EP/CLOA, (2) 2 valid � IDs.

e. The statement that, if the Owner refuses or fails to submit the two documents in item � d as proof of its ownership within 30 days, the NIA shall initiate expropriation, � provided that, should the owner be able to submit the two required documents after the � deadline, the NIA may request the OSG to withdraw the expropriation complaint and revert � to negotiated sale.

​

NEGOTIATED SALE: PROCEDURE (SEC. 2.14 OF NRAM)

3. Once the owner submits the required documents in item 2-d, validate the final LARP, and set � the appropriate price offer for negotiated sale, based on RA 10752 which provides that the NIA � shall offer, as compensation price, the sum of the following:

a. Current market value of the land.

b. Replacement cost of structures and improvements therein.

c. Current market value of crops and trees therein.

4. Send the Letter-Offer to the owner, indicating the price offer, and requesting it to accept � or reject the offer in writing within 30 days.

5. If the owner accepts the price offer within 30 days, execute a Deed of Absolute Sale � (DOAS) between the owner and the NIA.

a. In case of land with improvements and/or crops and trees, the DOAS shall provide a � stipulation allowing the NIA to demolish and remove them. The DOAS shall also include a � stipulation on the right of the NIA to immediately enter the property (i.e., Permit to Enter) and � implement the Project.

b. In case the sale pertains to structures/improvements only, the owner and the NIA shall � execute an Agreement to Demolish and Remove Improvement (ADRI), provided that the � owner has submitted documents to establish proof of ownership of the structures/ � improvements (e.g., certification from Barangay). The NIA shall remit to the LGU any � unpaid tax on such structures/ improvements, to be deducted from the negotiated price.

​

​

​

​

​

NEGOTIATED SALE: PROCEDURE (SEC. 2.14 OF NRAM)

6. If the owner rejects the price offer or fails and/or refuses to submit the � documents necessary for payments within 30 days, immediately initiate � expropriation proceedings.

7. Make payments to the owner (50%, 70%).

8. Compute the Capital Gains Tax (CGT) based on the actual consideration � stated in the Deed of Sale

9. Pay, for the account of the Owner (i.e., out of the AC), the CGT to the BIR, � within 30 days after (a) the release of the initial payments specified in Sec. � 2.14 of the NRAM or (b) the notarization of the DOAS, whichever is earlier.

10. Pay also to the BIR the Documentary Stamp Tax (DST), computed as 1.5% of � the AC, within 5 days after the closing of the month when the Deed of Sale is � notarized.

11. Pay to the Register of Deeds the transfer tax and registration fees.

12. Provide the National Archive the original Title of the property acquired.

13. Provide the NIA ROW Database a copy of the Title of the acquired property.

NEGOTIATED SALE: OWNERS OF STRUCTURES/ INPUTS WITH NO LEGAL RIGHTS TO LAND (IRR SEC. 6.8)

• Sec. 5(b) of RA 10752 on Replacement Cost shall also apply to owners of structures/improvements who do not have legally recognized rights to the land, and who meet all of the following criteria:

a. Must be a Filipino citizen.

b. Must not own any real property or any other housing facility.

c. Must not be professional squatter or member of a squatting syndicate � as defined in RA 7279.

• Owner and occupant must show a proof of ownership of the structure/ improvement, e.g., Certification from Barangay
• Informal settler families classified as underprivileged and homeless (RA 7279) and not qualified under the criteria above shall be entitled to relocation per RA 7279 in accordance with IRR Sec. 14 of RA 10752.

​

​

EXPROPRIATION: THE LAST RESORT�INTRODUCTION: EMINENT DOMAIN

Eminent domain is the power of the nation or a sovereign state to take, or to authorize the taking of, private property for a public use without the owner’s consent, conditioned upon payment of just compensation.” (Brgy. Sindalan, San Fernando, Pampanga vs. Court of Appeals, et al. G.R. No. 150640 citing 26 AMJur 2d 638)

​

Eminent domain is “an inherent political right, founded on a common necessity and interest of appropriating the property of individual members of the community to the great necessities of the whole community.”

​

​

​

Note: “Eminent domain” is not written but rather assumed in the Constitution.

NEGOTIATED SALE: CAPITAL GAINS TAX (SEC. 6.9)

• The NIA shall pay, for account of the seller/owner, the Capital Gains Tax (CGT) to the BIR based on the actual consideration stated in the Deed of Absolute Sale, as computed below:

AC = NAC + CGT

where:

AC = Actual Consideration indicated in the Deed of Absolute Sale to be appropriated and paid out by the IO for the negotiated sale,

NAC (or Net Actual Consideration) = Compensation Price offered by the IO to the owner in accordance with IRR Sec. 6.9, net of CGT,

CGT = Capital Gains Tax to be paid by the IO to BIR, for the account of the � owner.

Since CGT = x% of AC,

then NAC = AC – CGT = 100%AC – x%AC = (100% - x%)AC,

and, therefore, AC = NAC/(100% - x%), or grossed-up value.

• Thus, if CGT = 6% AC;

then AC = NAC/(100%-6%) = NAC/94% = 1.0638NAC

​

​

NEGOTIATED SALE: CAPITAL GAINS TAX (SEC. 6.9)

Illustrative Example of Computation for CGT

• Given:
• Net Actual Consideration (NAC) offered by the NIA to and accepted by the owner, based on the Fair Market Value of property as determined by GFI/IPA and accepted by the NIA = PhP1,000,000.
• Applicable Capital Gains Tax (CGT) = 6%
• Computations:
• Net Amount to be paid to property Owner = NAC = PhP1,000,000.
• Gross Amount to be appropriated/allocated by the IO = Actual Consideration (AC):

AC = NAC/(100%-6%) = NAC/94% = 1.0638NAC = PhP1,063,830.

• CGT to be paid by the IA to BIR for the account of the owner = 6% of AC

= 0.06 x PhP1,063,380 = PhP63,830.

INTRODUCTION: EMINENT DOMAIN

Constitution, Article III, Section 9. Private property shall not be taken for public use without just compensation.

​

Constitution, Article III, Section 1. No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws.

​

​

​

INTRODUCTION: EMINENT DOMAIN

Rule 67, Section 1. The complaint. “The right of eminent domain shall be exercised by the filing of a verified complaint which shall state with certainty the right and purpose of expropriation, describe the real or personal property sought to be expropriated, and join as defendants all persons owning or claiming to own, or occupying, any part thereof or interest therein, showing, so far as practicable, the separate interest of each defendant. If the title to any property sought to be expropriated appears to be in the Republic of the Philippines, although occupied by private individuals, or if the title is otherwise obscure or doubtful so that the plaintiff cannot with accuracy or certainty specify who are the real owners, averment to that effect shall be made in the complaint.”

​

​

INTRODUCTION: EMINENT DOMAIN

• The Right of Eminent Domain shall be exercised by filing an expropriation complaint
• The Complaint shall contain:
• Right and Purpose of Expropriation
• Description of the Property
• Name of persons owning, claiming or occupying the said property
• If the title to any property appears to be with the Republic or otherwise obscure or doubtful…averment to that effect shall be made in the complaint.

EXPROPRIATION: APPLICABILITY

(IRR SEC. 7 / NRAM Sec. 2.15)

• Expropriation should generally be the last resort in acquiring ROW.
• Cases where expropriation should be initiated:

a. where, within 30 days, owner:

(1) fails/refuses to submit documents necessary for � appraisal/negotiation, or

(2) refuses or fails to accept price offer of IA for negotiated sale, or

b. when negotiation is not feasible, including cases where, after due � diligence:

(1) the owner of the property cannot be found or

(2) the owner is unknown or

(3) the owner is deceased and the estate has not been settled or

(4) there are conflicting claims over the ownership of the property � and improvements and/or structures thereon.

EXPROPRIATION: PROCEDURE (SEC. 2.15 OF NRAM)

1. If negotiation has failed or NIA has determined that negotiation is not � feasible, request OSG/OGCC, in writing, to initiate expropriation before the court. � Each endorsement shall contain copies of the following documents for � each parcel of land and improvements to be expropriated:

a. Notice of Taking issued to the owner, with IA certification that the owner � refused or failed to submit the two required documents as proof of � ownership within 30 days (Owner’s copy of CT/OCT/EP/CLOA + 2 valid � identification cards) ; or - after submitting the two documents required in the � Notice of Taking - Letter-Offer for the negotiated price, with NIA certification that � the owner refused or failed to accept the price offer within 30 days.

b. Certified true copy of the Title (OCT or TCT) of the parcel of land to be � expropriated (from the Register of Deeds).

c. Certified true copy of the Tax Declaration of the parcel of land to be � expropriated (from assessor).

d. Page of the parcellary plan where the parcel of land to be expropriated is � indicated (from NIA)

​

​

EXPROPRIATION: PROCEDURE (SEC. 2.15 OF NRAM)

​

f. Subdivision plan of the parcel of land to be expropriated indicating therein the � portion to be expropriated (from the NIA).

g. Technical description of the portion of the parcel of land to be expropriated � (from the NIA).

h. Replacement Cost Estimate of the structures/improvements to be expropriated � (from the NIA).

i. Certified true copy of the Tax Declaration of the structures/improvements to � be expropriated (from the NIA).

j. Copy of the valuation of crops and trees, if any.

k. Project ECC, or equivalent document issued by the DENR

l. Project LARP (from the NIA).

m. Appraisal reports relevant to the project/property (from the NIA).

​

​

​

​

EXPROPRIATION: PROCEDURE (SEC. 2.15 OF NRAM)

3. Initiate preparation of check equivalent to amount of deposit required. The check will be in the name of the owners of the parcel or the Clerk of Court. The amount of the check shall be the sum of (IRR Sec. 7):

a. 100% of value of land based on current relevant zonal valuation of BIR, � issued not more than 3 years prior to filing of complaint;

b. Replacement cost at current market value of improvements/structures � as determined by NIA/ GFI/IPA.

c. Current market value of crops/trees as determined by GFI/IPA

​

4. OSG will file expropriation complaint with the proper court with the � assistance of the NIA.

​

5. Deposit the check with the court in favor of the owner. In case the owner � cannot be found, is unknown, or is deceased where the estate has not � been settled, or there are conflicting claims over the ownership of the � property, deposit the check with the Court where the expropriation case is lodged in � favor of its Clerk of Court.

​

​

EXPROPRIATION: PROCEDURE (SEC. 2.15 OF NRAM)

6. Immediately after the deposit, inform OSG [OGCC] of the deposit, � providing it a copy of the check indicating receipt of the court.

​

7. The Court, through a Court order, will release the deposit to the owner, � provided the owner presents proofs of ownership of the parcel of land or � improvement being expropriated such as:

a. Valid identification card of the Owner

b. Title/tax declaration of the parcel of land

c. Tax declaration on improvement

d. Proof of Ownership of the improvements not subject to tax declaration

​

8. After the filing of the expropriation complaint, the Court is expected to serve � the Summons to the owners. The IO may assist the Sheriff/Court process � server in serving the Summons.

​

​

​

​

EXPROPRIATION: PROCEDURE (SEC. 2.19 OF NRAM)

9. Immediately upon notice that the check has been deposited, the OSG � [OGCC] shall file the necessary Urgent Ex-Parte Motion for the Issuance of � a Writ of Possession (WOP), stating compliance with the requirements for � the same. The WOP will authorize the IA to take possession of property and � start implementation of the project. (IRR Sec. 7)

​

10. If the check is available before filing of the complaint, the OSG may � include the prayer for issuance of WOP.�

11. As soon as the requirements for issuance of WOP have been complied with, � the court is expected to release the deposit to owner upon presentation of � sufficient proofs of ownership (IRR Sec. 7), such as copies of the � following:

a. Valid ID of the owner

b. Title to the parcel of land

c. Tax declaration of improvement

d. Proof of ownership of the improvements not subject to tax declaration

EXPROPRIATION: PROCEDURE (SEC. 2.15 OF NRAM)

12. If within 7 working days after the deposit, and the court has not issued WOP � to NIA, counsel of NIA shall immediately seek from the court the immediate � issuance of WOP. The court is expected to immediately issue WOP Ex Parte. � (IRR Sec. 7)

​

13. Clear the ROW.

​

14. If the owner contests the NIA’s proffered value, the court shall determine � the just compensation to be paid to the owner within 60 days from filing of � expropriation case. The court is expected to appoint not more than 3 � competent and disinterested persons as commissioners to ascertain and � report to the court the just compensation for the property.

​

15. Attend hearings of possession set by the court.

​

17. The Commissioners are expected to submit to the court, within 60 days � from their appointment, a full and accurate report containing their � recommendations.

​

​

​

​

​

​

EXPROPRIATION: PROCEDURE (SEC. 2.15 OF NRAM)

18. When the court’s decision becomes final and executory, pay the owner � the difference between the amount (deposit) already paid and the just � compensation as determined by the court.

​

19. With the Court Sheriff, go to the Register of Deeds of the place in which the � property is located and bring a certified copy of the judgment for proper � recording and processing.

​

20. The owner shall pay the CGT to the BIR within 30 days after month when � judgment had become final and executory, any unpaid real property tax to � the LGU, and other applicable taxes under the law (IRR Sec. 7).

​

21. Follow up with the Register of Deeds until TCT of property has been � registered in the name of the NIA or Republic of the Philippines.

​

​

​

​

EXPROPRIATION: PROCEDURE (SEC. 2.15 OF NRAM)

22. Provide the National Archive the original Title of the property acquired.

​

23. Provide the NIA ROW Database a copy of the Title of the acquired property.

​

24. Pay DST to BIR (within 5 days after month when judgment had become final � and executory), transfer taxes under RA 7160 and registration fees to � Register of Deeds (IRR Sec. 7).

​

25. Owner shall pay CGT to BIR (within 30 days after month when judgment � had become final and executory), unpaid real property tax to LGU, and � other taxes under the law (IRR Sec. 7)

​

​

​

​

OTHER MODES OF

ROW ACQUISITION

Acquisition of Properties under CA 141 | Exchange or Barter | Easement of ROW �| Acquisition of Subsurface ROW | Other modes authorized by law

QUIT CLAIM UNDER CA 141

(SEC. 8 OF IRR / Sec. 2.18 NRAM)

​

• In case of lands granted thru CA 141 (1936-Public Land Act) and its amendments, the NIA shall:

​

a. follow the provisions under CA 141, if the landowner is the original patent � holder or the acquisition of the land from the original patent holder is through � a gratuitous title; or.

b. follow the other modes of acquisition in the IRR, if the landowner is not � the original patent holder and any latest previous acquisition of said land is � not through a gratuitous title; or

​

• With respect to item a, under CA 141, Sec. 112, a ROW strip not exceeding 20 m in width is reserved by the govt for public use with damages to improvements only. CA 141 was amended by PD 635 (1975), which increased the ROW strip for public use to not exceeding 60 m.

​

​

QUIT CLAIM UNDER CA 141

(SEC. 8 OF IRR / Sec. 2.18 NRAM)

​

​

• If the govt decides to exercise its right to use the ROW strip reserved for public use within the land acquired under CA 141, the owner is required to execute a quit claim.
• The NIA shall then take possession of the property without any compensation to the owner for the land, but shall pay the owner the cost of the damages for the improvements equivalent to their replacement cost in accordance with Sec. 6.6 of the IRR.
• If the owner refuses or is unable to issue a quit claim, the govt officials responsible for implementation are authorized to immediately take possession of the property subject of the lien, as the need arises and upon due notice to the owner. This is without prejudice to the NIA resorting to appropriate proceedings to acquire immediate possession of the property.
• The NIA shall extend financial assistance to the property owner according to EO 1035 (1985)

​

​

EXCHANGE OR BARTER (SEC. 9 OF IRR)

​

• Instead of being paid the money value of his property, the owner of a property needed for ROW of a natl govt project may request NIA to exchange or barter an old abandoned govt road or other govt property near the project with his property.
• The NIA may consider this mode - especially when the lot being taken from the owner is his only lot - subject to relevant laws and the following conditions (Sec. 9 of IRR):
• Exchange shall be done on a “value-for-value” basis, i.e., the properties being exchanged are equivalent in market value or price.
• If the govt property to be exchanged with the private property was originally donated, the donation must be verified to ensure that there is no condition which prohibits the govt from disposing of it to other private persons. If the govt property was originally acquired thru sale, the previous owner shall have first priority to reacquire the property if required by law or by the deed of sale
• Owners of property whose land about the said abandoned govt road or other property shall not be deprived of access to the new highway to be built, if any.
• The property owner and the NIA shall be subject to applicable CGT and DST in accordance with BIR rules.
• The Deed of Exchange is subject to the approval of the Office of the

President.

​

​

EASEMENT (SEC. 10 OF IRR / Sec. 2.17 NRAM)

• This is initiated after the completion of the DES of the project, but prior to the Parcellary Survey. The ROW Plan shall be used to determine if the portion of land to be affected is eligible for acquisition thru the mode of Easement of ROW.
• If the portion of a lot needed for ROW is minimal, such that expenses for surveying or segregating that portion from the main lot would be very much more than the value of that portion of the lot, the NIA may, if the owner agrees, resort to Easement of ROW under the Civil Code.
• Under this mode, a ROW easement agreement shall be executed by the property owner and the NIA whereby the owner will grant the NIA the right to use the affected portion of the lot as ROW, but the owner retains ownership of that portion of the lot.

EASEMENT (SEC. 10 OF IRR)

• The NIA shall pay the owner the value of that portion of the lot based on the existing BIR zonal valuation. The NIA shall also compensate the owner the replacement cost of any improvements/ structures on the land affected in accordance with Sec. 6.6 of the IRR. Entry by the NIA to the acquired property may be effected upon full payment of the value of the property. The NIA may engage an IPA to determine the amount of the easement to be paid.
• ROW acquisition through easement agreement may also be used in government agency-to-agency transactions, including those involving government-owned and controlled corporations.

ACQUISITION OF SUBSURFACE ROW �(SEC. 11 OF IRR)

• When necessary to construct in subsurface or subterranean portions of private and govt owned lands such infra as subways, tunnels, underpasses, water-ways, floodways, or utility facilities as part of govt’s infra project, govt shall not be prevented from entry into and use of such lands by surface owners or occupants, if such entry and use are made more than 50 m from the surface.
• 50 m depth is the extent of beneficial use of subsurface portion of the property, based on actual structure depths in the Philippines, and considering international experience.
• NIA shall consult with affected owners of acquisition of subsurface ROW.

ACQUISITION OF SUBSURFACE ROW �(SEC. 11 OF IRR)

• If project involves underground works within a depth of 50 m from the surface, NIA may undertake the mode of acquisition in the following order:

a. Negotiate with owner a perpetual easement of ROW for � subterranean portions of his property required by the project,

b. Offer to acquire from owner the affected portion of the � land, including structures/ improvements, crops/trees in � accordance with RA 10752

• NIA may engage GFI/PA, in accordance with IRR Sec. 6.
• Easement price shall be 20% of the market price of the land, if more than 50m from surface.
• NIA shall follow the other rules for negotiated sale in IRR Sec. 6.

​

MEASURE TO REDUCE COSTS OF SUBSURFACE ROW

​

To the extent feasible for underground infrastructure, use the spaces under public roads, rivers, and other properties

​

​

ROW ACQUISITION FOR PPP PROJECTS:�SOLICITED PROPOSALS

• The NIA shall be responsible for FS of the project, including Prel ROW Action Plan (LARP) which indicates the Basic ROW.
• The NIA shall include in the Bidding Documents for the project the FS, including the Basic ROW and Prel LARP, for the guidance of bidders/project proponents.
• Bidder/proponent shall indicate, in its Conceptual Eng Design (CED) submitted as part of its Bid, the ROW it requires for the project. This shall consist of (a) Basic ROW or portions thereof and (b) Additional ROW that it intends to use for the project

ROW ACQUISITION FOR PPP PROJECTS:�SOLICITED PROPOSALS

• Winning proponent/Concessionaire shall, based on its CED, prepare the DES for the project, to include (a) Parcellary Survey for the entire ROW (Basic ROW or portions thereof plus Additional ROW) and (b) Final LARP (including appraisal).
• NIA shall fund, acquire and deliver to Concessionaire the Basic ROW or portions thereof to be used for the project, based on its approved DES.
• NIA shall also acquire and deliver the Additional ROW required, based on the approved DES. But Concessionaire shall fund the cost of the Additional ROW.

ROW ACQUISITION FOR PPP PROJECTS:�SOLICITED PROPOSALS

• In case of any Additional ROW in substitution of any part of the Basic ROW that (a) shall not be used by the Concessionaire (per CED/DES) and (b) has not already been acquired by the NIA, NIA shall provide funding for the Additional ROW equal to the amount the NIA would have paid to obtain the portion of the Basic ROW replaced by the Additional ROW as determined by the NIA. Concessionaire shall bear the incremental cost of such Additional ROW, i.e., excess over the cost of the substituted parts of the Basic ROW.

ROW ACQUISITION FOR PPP PROJECTS:�SOLICITED PROPOSALS

• The NIA may, as part of the contract terms and conditions, require the PPP project proponent to:
• advance the funds covering ROW cost to be reimbursed later by the NIA; or
• finance the ROW cost which shall be recovered partly or fully by the proponent from user tolls, fees, or tariffs.

​

�ROW ACQUISITION FOR PPP PROJECTS:�UNSOLICITED PROPOSALS

• Proponent shall be responsible for undertaking the FS of the project, including Preliminary LARP which indicates the required ROW.
• Proponent shall indicate, in its CED as part of its unsolicited proposal, the description and limits of the ROW that it intends to use for the project.
• Once the NIA accepts the proposal, proponent shall, based on its CED, prepare the DES, which shall include (a) Parcellary Survey for the entire ROW and (b) Final LARP (including appraisal).

​

�ROW ACQUISITION FOR PPP PROJECTS:�UNSOLICITED PROPOSALS

• After the NIA has accepted proponent’s DES, incl Parcellary Survey results and Final LARP, the NIA shall acquire and deliver the ROW required, but Concessionaire shall fund all ROW costs.
• The NIA may, as part of the contract terms and conditions, require the PPP project proponent to finance the ROW cost which shall be recovered partly or fully by the proponent from user tolls, fees, or tariffs.

​

ROW ACQUISITION FOR DESIGN-BUILD�(DB) PROJECTS

• The NIA shall be responsible for undertaking the FS of the project, including Preliminary LARP which indicates the Basic ROW.
• The NIA shall include in the Bidding Documents the FS, including the Basic ROW and Preliminary LARP, for the guidance of the bidders.
• Bidder shall indicate, in its CED as part of its Bid, the ROW that it requires, consisting of (a) Basic ROW or portions thereof and (b) Additional ROW it needs.

​

ROW ACQUISITION FOR DESIGN-BUILD�(DB) PROJECTS

• Winning DB bidder shall, based on its CED, prepare the DES, which shall include (a) Parcellary Survey for the entire required ROW, and (b) Final LARP for the project.
• The NIA shall fund, acquire and deliver to the winning bidder the Basic ROW or portions thereof to be used for the project, based on the bidder’s approved DES.
• The NIA shall also acquire and deliver the Additional ROW required, based on the approved DES, but the bidder shall fund and prepare updated LARP, and the cost of the Additional ROW.
• ​

​

ROW BUDGET AND APPROPRIATIONS

(SEC.15 OF IRR)

• Govt shall provide adequate appropriations that will allow NIAs to acquire ROW in advance of project implementation. These shall include funds for activities directly related to ROW acquisition for the projects, as follows:

a. Cost of parcellary surveys, LARP (incl census, tagging, � socio-economic surveys, stakeholder consultation, structural � mapping, etc.), and appraisal of properties affected by the � projects.

b. Compensation for project-affected land (market value), � structures and improvements (replacement cost, including � relocation cost of equipment and compensable utilities), and � crops and trees (market value).

​

ROW BUDGET AND APPROPRIATIONS

(SEC.15 OF IRR)

​

c. Cost of development and implementation of resettlement � projects, incl planning, social preparation, in accordance � with DHSUD design standards and costings. Where necessary, � this may include land devt and housing construction, provision � of basic services and community facilities, livelihood � restoration and improvement, and other activities under the � resettlement action plan in coordination with concerned govt � agencies.

d. Related NIA expenses, including CGT in case of negotiated � sale, DST, transfer tax and registration fees for transfer of � titles, and other relevant admin expenses for ROW � management, including cost of ECC application, demolition � cost, notarization for property transfer, etc.

​

​

​

ROW BUDGET AND APPROPRIATIONS

(SEC.15 OF IRR)

• Basis of Appropriations
• For projects with PFS/FS: ROW budget shall be based on the preliminary appraisal and valuation of the affected properties undertaken as part of the Preliminary LARP.
• For projects with DES: ROW budget shall be based on the detailed appraisal and valuation of the affected properties undertaken as part of the validated Final LARP.
• For simple and small projects with no PFS/FS, such as road widening: ROW budget may be based on the following: (a) for land: updated SMV/BIR zonal values x factor not exceeding two, (b) for structures/impvts: benchmark costs for replacement from industry/DPWH standards, e.g., cost per sq m of house, and (c) for crops/trees: market prices from concerned agencies, like DA/ PCA/DENR/DOF/LGU.

ROW BUDGET AND APPROPRIATIONS (IRR SEC.15)

• Modes of Appropriation
• Preferred mode, especially for major multi-year projects: provide ROW appropriations - in NEP/GAA or corporate budget - separately from, and at least one year ahead of, appropriations for and scheduled procurement and implementation of actual construction works.
• For small single-year projects: ROW budget may be included as part of the total appropriation for the project for the budget year – i.e., as part of specific line item appropriation for the project in NEP/GAA or corporate budget

PROCESSING OF PAYMENTS OF ROW CLAIMS

• Payments are initiated at the following stages:
• For Negotiated Sale
• After signing of DAS: First payment of 50% of lot and 70% of structures/ improvements and crops/trees -
• After Title is transferred in the name of RP or NIA: Second payment of balance -
• Compensation to Owner.
• CGT to BIR for account of Owner.
• DST to BIR.
• Transfer Tax to Provincial/City Treasurer.
• Registration Fees to Register of Deeds.

PROCESSING OF PAYMENTS OF ROW CLAIMS

• Payments are initiated at the following stages:
• For Expropriation:
• After request to OSG/OGCC to file expropriation, for payment of:
• Deposit to the Court = BIR zonal value of lot, replacement cost of structures/ improvements, market value of crops/trees.
• After Court decision, for payment of :
• Difference between compensation decided by Court and deposit - to Owner.
• DST to BIR.
• Transfer Tax to Provincial/City Treasurer.
• Registration Fees to Register of Deeds.

PROCESSING OF PAYMENTS OF ROW CLAIMS

• Payments are initiated at the following stages:
• For Donation:
• After signing of Deed of Donation, for payment of :
• DST to BIR.
• Transfer Tax to Provincial/City Treasurer.
• Registration Fees to Register of Deeds.
• For Quit Claims
• After execution of Quit Claim, for payment of:
• Compensation to Owner for structures/ improvements and crops/trees.
• DST to BIR.
• Transfer Tax to Provincial/City Treasurer.
• Registration Fees to Register of Deeds.

PROCESSING OF PAYMENTS OF ROW CLAIMS

• Payments are initiated at the following stages:
• For Easement
• After execution of Easement Agreement, for payment of:
• Compensation to Owner for affected portion of land, structures/improvements and crops/trees.

​

Role-Playing Session

Role-Playing Session

​

There are four heirs/co owners of the affected lot. All heirs/co owners except one are willing to accept the Offer. What will you do?

​

Role-Playing Session

​

The owner already accepted the Offer Letter, however we cannot proceed with the payment of the land because there is still a pending mortgage. What will you do?

​

OVERVIEW OF THE DRAFT NRAM

OVERVIEW OF THE DRAFT NRAM