05/02/2020
E.O. No. 1035
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EXECUTIVE ORDER NO. 1035 June 25, 1985
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:
Sec. 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 implementating 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.
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