EXECUTIVE ORDER NO. 1035
EXECUTIVE ORDER NO. 1035 -
PROVIDING THE PROCEDURES AND GUIDELINES FOR THE EXPEDITIOUS ACQUISITION
BY THE GOVERNMENT OF PRIVATE REAL PROPERTIES OR RIGHTS THEREON FOR
INFRASTRUCTURE AND OTHER GOVERNMENT DEVELOPMENT PROJECTS
WHEREAS, one of the major causes of
delays in the implementation of development projects, particularly
national infrastructure projects, has been the processing of
acquisition of private properties or rights-of-way (ROW) thereon which
are needed for said projects, and the settlement of claims for payment
thereof;
WHEREAS, such property or ROW acquisitions are being hampered by
several problems such as refusal of landowners/tenants to allow
government personnel to enter the property during parcellary surveys,
refusal of owners to sell because of cultural/personal value attached
to the property, difficulties encountered by landowners in complying
with existing rigid governmental requirements for payment of claims,
and delays in issuance of court orders in expropriation cases;
WHEREAS, the delays in the implementation of development projects due
to the aforementioned problems on property/ROW acquisitions have been
causing a big drain on the government’s financial resources in view of
increased project costs specifically in terms of commitment fees on
undrawn balance of foreign loans and price escalation;
WHEREAS, there is an urgent need to amend existing rules and
regulations, as well as to adopt new procedures and guidelines in order
to expedite the acquisition of private property or rights thereon
needed for infrastructure and other development projects of the
government;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
the Philippines, by virtue of the powers vested in me by the
Constitution, do hereby order and direct as follows:
Section 1. Scope and Applicability. — The provisions
of this Executive Order shall govern all acquisitions of private real
properties or rights-of-way (ROW) thereon needed for infrastructure
projects and other development projects of the government which are
undertaken by any ministry, agency, office or instrumentality of the
government, including government-owned or controlled corporations and
state colleges and universities.
TITLE
A — ACTIVITIES PREPARATORY TO ACQUISITION OF PROPERTY
Sec. 2. Feasibility Studies. — Feasibility studies
shall be undertaken for all major projects, and such studies shall, in
addition to the usual technical, economic and operational aspects,
include the social, political, cultural and environmental impact of the
project.
Sec. 3. Information Campaign. — Every agency,
office and instrumentality of the government proposing to implement a
development project which requires the acquisition of private real
property or rights thereon shall first make consultations with the
local government officials, including the regional development councils
having jurisdiction over the area where the project will be undertaken
to elicit their support and assistance for the smooth implementation of
the project. The implementing agency/instrumentality concerned with the
assistance of the local government officials and representatives of the
Office of Media Affairs shall conduct an extensive public information
campaign among the local inhabitants that will be affected by the
project to acquaint them with the objectives and benefits to be derived
from the project and thus avoid any resistance to or objection against
the acquisition of the property for the project.
Sec. 4. Detailed Engineering/Surveys. — The
implementing government agency/instrumentality concerned shall, well in
advance of the scheduled construction of the project, undertakes
detailed engineering, including parcellary surveys to indicate the
location and size of the sites and to determine ownership of the land
to be acquired, including the status of such landownership.
Sec. 5. Project Cost/Funding. — The estimated cost
of a project shall have the following distinct components:
a.
Pre-investment cost which shall include the cost of undertaking the
feasibility study and public information campaign.
b. Investment
cost which shall include the cost of detailed engineering, cost of the
property to be acquired and cost of construction and construction
supervision.
The programming and budgeting of funds for the pre-investment and
pre-construction phases, carried out in that order, shall be undertaken
well in advance of the scheduled commencement of construction. The
implementing agency/instrumentality concerned shall include in their
respective proposals for annual budgetary outlays provisions to finance
these preparatory activities and the Office of Budget and Management
(OMB) shall consider such proposals in the light of the foregoing. In
the case of the infrastructure ministries, the necessary outlays for
each phase of the pre-implementation activities shall be made a
distinct component of the annual infrastructure program which shall be
released by the OMB as scheduled.
TITLE
B — PROCEDURE FOR ACQUISITION OF PROPERTY
Sec. 6. Acquisition Through Negotiated Sale. — As
an initial step, the government implementing agency/instrumentality
concerned shall negotiate with the owner of the land that is needed for
the project for the purchase of said land, including improvements
thereon. In the determination of the purchase price to be paid, the
Ministry of Finance and the Provincial/City/Municipal Assessors shall
extend full assistance and coordinate with the personnel of the
government implementing agency concerned in the valuation of lands and
improvements thereon taking into consideration the current and fair
market value declared by the owner or administrator of the land, or
such current market value as determined by the assessor, whichever is
lower, prior to the negotiation.
Sec. 7. Expropriation. — If the parties fail to
agree in negotiation of the sale of the land as provided in the
preceding section, the government implementing agency/instrumentality
concerned shall have authority to immediately institute expropriation
proceedings through the Office of the Solicitor General or the
Government Corporate Counsel, as the case may be. The just compensation
to be paid for the property acquired through expropriation shall be in
accordance with the provisions of P.D. No. 1533. Courts shall give
priority to the adjudication of cases on expropriation and shall
immediately issue the necessary writ of possession upon deposit by the
government implementing agency/instrumentality concerned of an amount
equivalent to ten per cent (10%) of the amount of just compensation
provided under P.D. No. 1533; Provided, That the period within which
said writ of possession shall be issued shall in no case extend beyond
five (5) days from the date such deposit was made.
Sec. 8. Conditions Precedent to Foreign Loan
Negotiation. — As a general rule, negotiations for foreign loans to
finance specific construction projects and other projects requiring
acquisition of private real property or rights thereon shall be
undertaken only after the negotiation for such acquisition with the
property owner/s have been completed or the expropriation proceedings
have been initiated: Provided, That before the filing of expropriation
proceedings, the financing institution must have already favorably
appraised the project: Provided, further, That exceptions to the above
rule may be allowed by the Investment Coordination Committee (ICC) on a
case-to-case basis depending on the type, size and technology of the
project involved. In such case, the ICC shall determine the
extent/stage of property acquisition that may be required as a
pre-condition for project approval or for negotiation of a foreign loan
to finance the project.
TITLE
C — PROCEDURE FOR PAYMENT AND REGISTRATION OF PROPERTY/ROW ACQUISITIONS
Sec. 9. Assessment of Taxes Due. — The Bureau of
Internal Revenue and the respective Provincial/City/Municipal
Treasurers shall assess the following taxes, where applicable, on the
property being acquired:
a)
Capital gains tax due on the grains derived from the sale of the real
property to the government;
b) Estate tax
due on the portion of the estate of a deceased owner to be acquired by
the government; and
c) Unpaid real
estate taxes on the property up to the time the government took
possession thereof.
Such assessment shall be made and transmitted to the government
implementing agency/instrumentality concerned within one (1) week from
the submission of complete requirements.
Sec. 10. Withholding Tax/Tax Clearance. — Upon
receipt of the assessment of the aforementioned taxes, the government
implementing agency/instrumentality concerned shall issue a
certification that upon payment to the landowner; it shall deduct the
corresponding capital gains tax and any unpaid estate tax and real
estate tax.
On the basis of such certification, the BIR and the respective
Provincial/City/Municipal Treasurers shall issue the tax clearances for
the registration of the property in favor of the government
implementing agency/instrumentality concerned.
All taxes deducted shall be immediately remitted by the government
implementing agency/instrumentality concerned to the BIR or the
Provincial/City/Municipal Treasurer, as the case may be.
Sec. 11. Payments for Improvements on the Property
Acquired. — Payment for the improvements or property acquired which are
not included in the respective tax declaration of the owner, shall be
based on the physical inventory report prepared and certified to by the
representatives of the agency, the Commission on Audit, and the
claimant. In addition thereto, claims for payment of improvements must
be supported by an affidavit of the claimant and affidavit of two (2)
adjoining landowners or barangay officials attesting to or
substantiating the ownership of said improvements.
Sec. 12. Indemnity Bond for Untitled Lands. — In
case where the property acquired is untitled, the government
implementing agency/instrumentality concerned shall require the land
owner to post an indemnity or property bond, the amount of which shall
be fixed by the Provincial/City/Municipal Treasurer concerned on the
basis of the market value as determined by the assessor and as
appearing on the current tax declaration of the property. This
requirement shall be dispensed with where the claim for payment does
not exceed P50,000.
Sec. 13. Period for Payment. — The payment of
property acquired shall be effected by the implementing government
agency/instrumentality concerned within ninety (90) days upon approval
by appropriate higher authorized of the negotiated sale and submission
by the landowner of all required documents. In the case of property
acquired through expropriation, payment shall be effected within ninety
(90) days from the finality of the decision rendered by the court:
Provided, That if at the time of finality of the decision the funds
originally allotted to cover the cost of the property are no longer
available due to expiration of the pertinent release instruments,
payment shall be made upon the release of funds by the OBM which is
hereby directed to effect the immediate release thereof, chargeable
against available and applicable appropriations thereof.
Sec. 14. Properties Covered by Operation Land
Transfer. — In case the land acquired is covered by the Operation Land
Transfer of the Ministry of Agrarian Reform under P.D. No. 27, payment
of the purchase price shall be made by the implementing
agency/instrumentality concerned to the farmer-beneficiary owning such
land by virtue of an emancipation patent issued by the Ministry of
Agrarian Reform, free from all liens and encumbrances. If the land is
not covered by an emancipation patent, or even if covered by an
emancipation patent but the farmer-beneficiary is still amortizing the
same with the Land Bank, payment shall be made by the government
implementing agency/instrumentality to the landowner, or the Land Bank,
as the case may be: Provided, That any amortization payments made by
the farmer-beneficiary to the landowner, or the Land Bank, as the case
may be, shall be deducted by the government implementing
agency/instrumentality from the purchase price and shall be paid to the
farmer-beneficiary: Provided, further, That the farmer-beneficiary
shall be entitled to the financial assistance provided for under
Section 18 hereof.
Sec. 15. Approval of Survey Plans. — The National
Land Titles and Deeds Registration Administration and the Bureau of
Lands shall give priority to the approval of all survey plans of
parcels of land affected by government projects that have been filed
under their respective jurisdiction.
Sec. 16. Registration of Deed of Conveyance. — The
Register of Deeds shall register the deed of conveyance and issue the
corresponding title in favor of the government within seven (7) days
from the date of presentation of such deed together with the
certification provided in Section 10 hereof.
The Register of Deeds shall also register the ROM agreement executed by
the landowner in favor of the government for the ROW easement acquired
by the latter over his property.
TITLE
D — ASSISTANCE TO DISPLACED TENANTS/OCCUPANTS
Sec. 17. Relocation/Resettlement of
Tenants/Occupants Affected by Property/ROW Acquisitions. — In case
where the land to be acquired for the project would involve
displacement of tenants, farmers and other occupants, the Ministry of
Human Settlements, Ministry of Agrarian Reform and other concerned
agencies shall extend full cooperation and assistance to the
implementing agency/instrumentality concerned in the relocation and
resettlement of such displaced tenants and occupants.
Sec. 18. Financial Assistance to Displaced
Tenants/Occupants. — The government implementing
agencies/instrumentalities concerned shall extend financial assistance
to the displaced tenants of agricultural lands, cultural minorities and
settlers who are duly accredited by the Ministry of Agrarian
Reform/Bureau of Forest Development/Office of Muslim Affairs and
Cultural Communities. In the case of cultural minorities payment of
such financial assistance shall be based on land occupancy certificates
pursuant to the provision of P.D. 419. The amount of financial
assistance to be given to tenants/farmers of agricultural lands which
is to be determined by the implementing agency concerned in
consultation with appropriate agencies, shall be equivalent to the
value of the gross harvest for one year on the principal and secondary
crops of the area acquired, based on the average annual gross harvest
for the last three preceding crop years: Provided, That in no case
shall the financial assistance be less than P15,000.00 per hectare.
Financial assistance may also be given to owners of lands acquired
under CA 141, as amended, for the area of portion subject to the
reservation under Section 112 thereof in such amounts as may be
determined by the implementing agency/instrumentality concerned, in
consultation with the Commission on Audit and the assessor’s office
concerned.
Payment of the abovementioned financial assistance shall be made at the
time of relocation of the tenants/farmers.
Sec. 19. Repealing Clause. — All executive orders,
instructions, rules and regulations or parts thereof inconsistent with
this Executive Order are hereby repealed or modified accordingly.
Sec. 20. Effectivity. — This Order shall take
effect immediately.
Done in the City of Manila,
this 25th day of June, in the year of Our Lord, nineteen hundred and
eighty-five.