Land Acquisition, Resettlement, Rehabilitation and Indigenous Peoples’ Policy, 3rd edition (2007) d. Compensation For Land i. Computation of the replacement cost of land shall be pursuant to RA 8974. The initial offer to the PAF is the indicated price in the current zonal valuation issued by the Bureau of Internal Revenue (BIR) for the locality where the property is located. If the offered price is not acceptable to the PAF, the second offer will be current market value at the time of taking, based on the standards prescribed in Sections 5 and 6 of RA 8974. ii. Land swapping if feasible, ‘land for land’, will be provided in terms of a new parcel of land of equivalent market value, at a location acceptable under zoning laws, or a plot of equivalent value, whichever is larger, in a nearby resettlement area with adequate physical and social infrastructure. When the affected holding has a higher value than the relocation plot, cash compensation will cover the difference in value iii. Holders of free patent, homesteads under CA 141, or the Public Lands Act, will be compensated for improvements only. iv. Holders of Certificates of Land Ownership Award (CLOA) granted under the Comprehensive Agrarian Reform Act shall be compensated pursuant to the provisions of RA 8974. However, CLOAs granted under Public Land Act or CA 141 landowners shall be compensated for the affected land improvements only. e. Other Types of Assistance or Entitlements i.Disturbance Compensation - For agricultural land severely affected the lessees are entitled to disturbance compensation equivalent to five times the average of the gross harvest for the past 3 years but not less than PhP15, 000. ii.Income Loss. For loss of business/income, the PAF will be entitled to an income rehabilitation assistance not to exceed PhP 15,000 for severely affected structures, or to be based on the latest copy of the PAF’s tax record for the period corresponding to the stoppage of business activities. Environmental and Social Services OfficeDepartment of Public Works and Highways February 2007 13