Land Acquisition, Resettlement, Rehabilitation and Indigenous Peoples’ Policy, 3rd edition (2007) B. RA 8974- An Act to Facilitate the Acquisition of Right –Of-Way (ROW), Site or Location for National Government Infrastructure Projects a law that was assigned and took effect in November 2000. 1. Implementing Rules and Regulations of RA 8974 provides the different bases for land valuation for the following modes of acquisition: negotiated sale and expropriation. 2. The Implementing Rules and Regulations of this law state that the Implementing Agency shall negotiate with the owner for the purchase of the property by offering first the current zonal value issued by the Bureau of Internal Revenue for the area where the private property is located. 3. The law also states that valuation of the improvements and/or structures on the land to be acquired shall be based on the replacement cost which is defined as the amount necessary to replace the structure or improvement based on the current market prices for materials, equipment, labor, contractor’s profit and overhead, and all other attendant costs associated with the acquisition and installation in place of the affected improvements/installation. 4. Modes of Acquisition. Under the law, there are different modes of acquiring title to, and ownership of, private property particularly real estate property, as well as the modes of acquiring right to use private property for another purpose. RA 8974 specifies the following methods: Donation, Quit Claim, Exchange or Barter, Negotiated Sale or Purchase, Expropriation and any other modes of acquisition authorized by law. 5. Zonal value as the first offer. In case the mode of acquisition is through a negotiated sale, the first offer shall be the zonal value of the particular land where the property is located, as determined by the Bureau of Internal Revenue. In case the owner rejects the first offer, the Department shall renegotiate using the values recommended by the Appraisal Committee or Independent Land Appraiser as a guide for negotiation. 6. Standards to determine market value. Negotiated sale between DPWH and the PAF based on the following standards to determine the market value: a. The classification and use for which the property is suited; b. The development costs for improving the land; c. The value declared by the owners; d. The current selling price of similar lands in the vicinity; Environmental and Social Services OfficeDepartment of Public Works and Highways February 2007 3