Below is an extensive discussion of Road Right-of-Way (ROW) Acquisition Law in the Philippines as it applies to Local Government Units (LGUs). This article focuses on the legal framework, processes, and considerations when LGUs undertake road infrastructure projects requiring land acquisition.

1. Overview of the Right-of-Way Concept

1.1 Definition of Right-of-Way

A “right-of-way” refers to the legal right to pass through property owned by another. In the Philippines, when the government (whether national or local) undertakes infrastructure projects—like roads, bridges, or other public works—acquiring a right-of-way is typically necessary. This is often done either through negotiation (purchase), donation, or expropriation (the forced acquisition of private property with just compensation).

1.2 Constitutional Basis

The Philippine Constitution (1987) recognizes the State’s power of eminent domain. While this power is broad, it can only be used for public purpose and with the payment of just compensation. The Constitution upholds property rights but authorizes the government to acquire private property when required by public necessity.

2. Legal Framework for LGU Road Projects

2.1 Republic Act (R.A.) No. 7160 – The Local Government Code of 1991

Authority of LGUs to Exercise Eminent Domain
Section 19 of R.A. 7160 empowers provinces, cities, and municipalities to exercise eminent domain for public use or welfare, or for the benefit of the poor and the landless.
Procedural Requirements
- Authority from the Sanggunian: A local chief executive (governor or mayor) needs an ordinance from the legislative council (Sanggunian) authorizing the project and the exercise of eminent domain.
- Public Use Requirement: The project must serve a public purpose, such as constructing or expanding a public road.
- Just Compensation: The LGU must pay the landowner fair market value for the property.

2.2 Republic Act (R.A.) No. 10752 – The Right-of-Way Act (2016)

Applicability to Local Projects
While R.A. 10752 was enacted to facilitate the acquisition of right-of-way for “national government infrastructure projects,” LGUs often adopt its processes and best practices. The law and its Implementing Rules and Regulations (IRR) provide standardized guidelines that can also be used by local governments.
Key Provisions
1. Mode of Acquisition: Encourages acquisition primarily through negotiated sale. If negotiations fail, expropriation is used.
2. Just Compensation: Requires independent property appraisals and considers current market values, development potential, and other relevant factors.
3. Payment of Compensation: Allows for direct payment, land exchange, or any other modes agreed upon by the parties.
4. Entitlements and Assistance: Provides relocation assistance for displaced informal settlers, if applicable, and additional safeguards for property owners.

2.3 Republic Act (R.A.) No. 8974 – For National Infrastructure Projects

Though primarily intended for national projects (e.g., undertaken by the Department of Public Works and Highways), R.A. 8974’s principles on just compensation and streamlined right-of-way acquisition processes influence local government practices.

2.4 Other Relevant Laws, Regulations, and Jurisprudence

Civil Code of the Philippines
Lays down general principles of ownership and the rules for easements.
Jurisprudence
Philippine courts have produced a large body of case law on eminent domain, covering valuation methods, procedural due process, and rights of property owners. These serve as precedents, ensuring LGUs follow due process and pay fair compensation.

3. Modes of Acquiring Road Right-of-Way

3.1 Voluntary Acquisition or Negotiated Sale

The preferred mode is a negotiated sale between the LGU and the property owner:

Offer to Buy: The LGU makes an initial offer based on an independent appraisal.
Counter-Offer and Negotiations: The landowner may counter with a different valuation.
Purchase Agreement: If both parties agree, they execute a Deed of Sale, and the LGU pays the agreed price.

This mode tends to be faster and less contentious than expropriation, as it avoids litigation and fosters goodwill between the government and citizens.

3.2 Donation

Some landowners may choose to donate land for the public road if they see a community benefit or if they have commercial or personal incentives (e.g., improved access, higher property values). A Deed of Donation is executed, subject to acceptance by the LGU.

3.3 Expropriation (Eminent Domain)

When voluntary acquisition fails, or when an owner cannot be located or refuses to sell at a fair price, the LGU may file a complaint for expropriation in court. Key steps include:

Local Ordinance
A Sanggunian ordinance or resolution authorizing the expropriation is required, citing the necessity for public use.
Court Proceeding
- Filing of the Complaint: The LGU files the complaint and deposits the required preliminary amount in court (often the sum based on the current zonal value, or as indicated by R.A. 10752/IRR).
- Writ of Possession: Upon deposit of the amount, the court typically issues a writ of possession, allowing the LGU to take immediate control of the property for the project.
- Determination of Just Compensation: The court appoints commissioners (often real estate appraisers) to evaluate the property’s fair market value. The final judgment sets the amount the LGU must pay to the owner.
Payment
- After the court determines the just compensation, the LGU pays the landowner the balance (if any).
- The property then vests in the LGU for the road project.

4. Calculation of Just Compensation

4.1 Factors Considered

Philippine courts consider multiple factors when setting just compensation:

Market Value: Typically based on recent sales of comparable properties, official schedules of market values, and the property’s income or development potential.
Location and Zoning: Commercial, residential, or agricultural classification significantly affects valuation.
Improvements: Existing structures, agricultural crops, or other permanent additions affect the valuation.
Highest and Best Use: Potential use of the land in the near future (e.g., if it can be rezoned for commercial use).

4.2 Role of Independent Appraisal

In compliance with R.A. 10752 and modern expropriation procedures, local governments often rely on licensed independent appraisers to determine a fair offer price before resorting to court action. This professional valuation helps avoid undervaluation and reduces litigation risk.

5. Funding and Budgetary Considerations for LGUs

5.1 Appropriation Ordinances

LGUs must ensure that funds for ROW acquisition are duly appropriated. The Sanggunian enacts an appropriation ordinance allocating a specific budget for land acquisition.

5.2 COA and DBM Regulations

Commission on Audit (COA): Monitors expenditures of public funds to ensure compliance with auditing and accounting rules, especially for negotiated purchases.
Department of Budget and Management (DBM): Issues guidelines on how LGUs can use their funds (including Internal Revenue Allotment, now called the National Tax Allotment) for public infrastructure.

6. Special Issues and Challenges

6.1 Informal Settlers and Relocation

If the property hosts informal settlers, LGUs must coordinate with housing agencies (e.g., the National Housing Authority) to provide relocation or compensation. Failing to address social impacts can lead to project delays and legal challenges.

6.2 Fragmented Land Titles and Unclear Ownership

Many local roads traverse lands with missing or outdated titles, or properties that are co-owned by multiple heirs. LGUs must conduct thorough due diligence, often needing to institute extrajudicial settlement processes or quieting-of-title actions.

6.3 Delays in Court Proceedings

Expropriation cases can sometimes take years. If the LGU needs immediate possession, it relies on provisional remedies (e.g., depositing the initial value in court to secure a writ of possession). Nonetheless, final settlement of the case can be protracted.

6.4 Public Opposition or Protest

Communities sometimes oppose road projects due to concerns over unfair compensation, environmental impact, or destruction of historical sites. LGUs should undertake adequate public consultation and project justification to minimize conflicts.

7. Best Practices and Recommendations

Early Planning and Valuation
- Conduct thorough feasibility studies and land assessments to estimate ROW costs before finalizing the project design.
- Secure independent appraisal reports to ensure credible offers.
Transparent Consultation
- Engage with affected property owners and local stakeholders early.
- Clearly explain the public purpose, the compensation approach, and the timeline.
Efficient Legal Processes
- Prepare all legal documents (ordinances, appraisal, funds) before negotiating with property owners.
- If expropriation is inevitable, file cases promptly and ensure compliance with legal requirements to expedite issuance of the writ of possession.
Multi-Stakeholder Collaboration
- Coordinate with national agencies (DPWH, DENR, DAR) when the road crosses national highways, forest lands, or agricultural areas.
- Work with local housing authorities for relocation issues.
Proper Documentation
- Keep meticulous records of transactions, payments, and legal pleadings.
- This documentation is crucial for auditing and possible future disputes.
Adherence to Ethical Standards
- Avoid undervaluation or coercive tactics.
- Respect property rights and give owners due notice and fair compensation.

8. Conclusion

Road right-of-way acquisition is a critical and often complex process for Philippine LGUs undertaking infrastructure projects. It is governed by constitutional protections on property rights, the Local Government Code, and various national laws and regulations—most notably R.A. 10752 when adopting its best practices. While LGUs enjoy the power of eminent domain for public use, strict adherence to the principles of due process, just compensation, and transparency is essential.

By ensuring orderly negotiations, compliance with legal procedures, and fair valuation, LGUs can successfully deliver road projects that benefit the community while respecting the rights of property owners. With proper planning, consultation, and budgeting, local government road projects can proceed more smoothly, fostering development and enhancing public welfare across the Philippines.