ARROW Act Expands Scope and Accelerates Land Acquisition Processes

Republic Act No. 12289, or the Accelerated and Reformed Right-of-Way (ARROW) Act, introduces comprehensive reforms to the acquisition of real property for infrastructure development by amending the Right-of-Way Act (RA 10752). This strengthens the State’s policy that private property cannot be taken for public use without just compensation, ensuring prompt payment based on a nationally consistent valuation system to accelerate project implementation.

The ARROW Act expands the scope of right-of-way acquisition to include private sector participation. The Act defines “Private Entity Providing Public Service” as an entity that has been granted the power of eminent domain under its franchise or law, and operates, manages, or controls various specified services which explicitly include delivering essential public services such as electricity transmission, water systems, and airports. It also addresses the growing need for infrastructure on subsurface portions of private land, allowing entry and use beyond specified depths, subject to safeguards and compensation requirements.

Significant changes were made to the rules on negotiated sale, including a revised formula for compensation and an upfront payment scheme that provides 50% of the negotiated price for land and 70% for structures, improvements, crops, and trees upon execution of the deed of sale. The Act also shifts the burden of taxes and fees to the implementing agency or private entity, reducing the financial impact on property owners.

When negotiations fail, the ARROW Act streamlines expropriation proceedings by allowing immediate possession upon deposit of prescribed amounts and requiring courts to resolve just compensation within 60 days. Additional provisions mandate resettlement for displaced informal settlers, restrict unauthorized developments within declared right-of-way areas, and require public disclosure of acquisition status online. For foreign-assisted projects, Official Development Assistance guidelines will prevail in case of conflict.

These reforms aim to balance the need for timely infrastructure development with the protection of property rights, transparency, and social safeguards.