DPWH EMINENT DOMAIN & EXPROPRIATION IN THE PHILIPPINES

A comprehensive legal article

1. Overview & Context

The Department of Public Works and Highways (DPWH) is the national government agency primarily tasked with building and maintaining roads, bridges, flood-control structures, and other public works. Because most of these projects require private land, the DPWH relies on the State’s power of eminent domain— the authority to involuntarily take private property for a public purpose upon payment of just compensation. “Expropriation” is the judicial exercise of that power.

2. Constitutional Foundations

Provision	Key Language	Practical Effect
Art. III, §9 (Bill of Rights)	“Private property shall not be taken for public use without just compensation.”	Creates the substantive right to compensation and limits takings to public use.
Art. XII, §1 (National Economy & Patrimony)	All lands of the public domain, waters, minerals… belong to the State.	Confirms sovereign ownership and underlying police power behind eminent domain.

Two constitutional ideas govern DPWH takings:

Public Use – Roads, bridges, floodways, etc. clearly satisfy the requirement.
Just Compensation – Payment must be full and fair, measured as of the date of taking.

3. Statutory Framework

Rule 67, Rules of Court (1964, as amended) – Procedural rules for judicial expropriation: filing of complaint, deposit, writ of possession, appointment of commissioners, valuation, judgment, appeals.
Civil Code arts. 435-437 – Defines the State’s right of compulsory acquisition and bars taking without indemnity.
R.A. 8974 (2000) – Law on Acquisition of Right-of-Way (ROW) for National Government Infrastructure Projects
- Requires a negotiated sale first; expropriation is a last resort.
- For possession, the DPWH must deposit 100 % of the BIR zonal value of the land plus replacement cost of improvements/structures.
R.A. 10752 (2016) – Right-of-Way Act (supersedes portions of R.A. 8974)
- Updates valuation to “replacement cost” determined by two independent appraisers, not merely zonal value.
- Lowers the initial deposit for a writ of possession to 50 % of zonal value (plus improvements); balance is paid after transfer of title.
R.A. 7160, §19 (Local Government Code) – Allows LGUs to expropriate for local roads and utilities; invoked when DPWH delegates projects to LGUs.
Special Laws – e.g., Railways Act, Urban Development & Housing Act (R.A. 7279) for resettlement of informal settlers; Build-Operate-Transfer Law for PPP projects.

4. DPWH Administrative Machinery

Instrument	Contents
DPWH ROW & Site Acquisition Manual (latest revision 2017)	Step-by-step guidelines on planning, negotiation, documentation, valuation, resettlement, and coordination with Land Bank, Registry of Deeds, LGUs, and people’s organizations.
Department Orders & Memoranda	Create ROW Task Forces at regional & project-level; set documentary checklists; prescribe timelines (e.g., 30 days for negotiation).
Inter-Agency Committees	DPWH often coordinates with the National Housing Authority (NHA) and Presidential Commission for the Urban Poor (PCUP) on relocation, and with DENR-LMB on cadastral issues.

5. The Expropriation Workflow

Project Concept & Alignment Fixing
- Feasibility study identifies affected lots (Project Affected Persons, “PAPs”).
Negotiated Purchase (Primary Mode)
- DPWH offers “replacement cost” (average of valuations by two PSA-accredited appraisers).
- If the owner accepts, a Deed of Sale is executed; payment follows within 30 days.
Failed Negotiation → Expropriation
- DPWH Legal Service files a complaint for expropriation in the proper RTC.
- Deposit: Under R.A. 10752, 50 % of zonal value + full cost of improvements is deposited with the court or Land Bank.
Immediate Possession
- Court issues a Writ of Possession (WOP) within 7 days.
- Sheriff turns over physical possession to DPWH; owner may withdraw the deposit without prejudice to final valuation.
Commissioners’ Hearing
- Court appoints 3 competent and disinterested Commissioners (often a licensed appraiser, a local assessor, and an engineer).
- They inspect, receive evidence, and submit a Report & Recommendation.
Judgment on Just Compensation
- Court may adopt, modify, or reject the report.
- Judgment earns legal interest (currently 6 % p.a. simple) from date of taking (Nacar v. Gallery Frames, G.R. No. 189871, Aug 13 2013).
Payment of Deficiency & Transfer of Title
- Balance (if any) is paid; DPWH submits proof to the Registry of Deeds.
- Title is transferred to the Republic of the Philippines, annotated with the project name.
Appeal (Optional)
- Aggrieved party may appeal to the Court of Appeals and the Supreme Court, but DPWH retains possession.

6. Standards for “Just Compensation”

Element	Rule
Land	Market value as of date of taking; must reflect highest and best use (e.g., residential, commercial, agricultural).
Improvements/Structures	Replacement cost— cost to build a new equivalent, using present materials, standards & workmanship.
Crops & Trees	Net harvest value + cost to reinstate.
Easements	Compensation may be a percentage of market value depending on severity of restriction.
Severance Damage	Paid when only part of a parcel is taken and the remainder’s value diminishes.
Interest	6 % per annum simple (unless parties stipulate otherwise).

Key Case Law Republic v. Castellvi (G.R. No. L-20620, Aug 15 1974) – “Date of Taking” is when the owner is deprived of use and beneficial ownership. NPC v. Heirs of Salvador (G.R. No. 190023, June 29 2015) – Replacement cost mandatory for improvements, not original cost. Republic v. Lim (G.R. No. 161656, June 29 2010) – Writ of Possession is ministerial once the required deposit is made.

7. Resettlement & Social Safeguards

Informal Settlers – DPWH must coordinate with LGUs & NHA for in-city or near-city relocation sites; “zero eviction without relocation” policy.
Vulnerable Sectors – Special assistance for IPs/ICCs (Indigenous Peoples), tenants, and small business owners.
Environmental & Social Impact – Projects funded by multilateral banks (World Bank, ADB, JICA) trigger additional policies: Environmental and Social Safeguards, Livelihood Restoration Plans, Grievance Redress Mechanisms.

8. Common Bottlenecks & Risk Points

Issue	Consequence	Mitigation
Under-valuation (low zonal values)	Landowners reject offers → litigation delays.	Commission dual appraisers early; adjust zonal values via DOF-BIR petition.
Fragmented titles / heirship disputes	Unclear ownership stalls payment.	Use consignment in court; request special power of attorney from all heirs.
Informal settlers & utilities	ROW not cleared on time.	Parallel resettlement timetable; utility relocation agreements with concessionaires.
Funding availability	Insufficient ROW budget leads to staggered payments.	Include ROW costs in General Appropriations Act (GAA) line items; allow Multi-Year Contract Authority.
Court congestion	Prolonged valuation proceedings.	Opt for Mediation or JDR (Judicial Dispute Resolution) after commissioners’ report.

9. Local Government Expropriation vs. DPWH

Aspect	LGU (RA 7160 §19)	DPWH (R.A. 10752)
Purpose Standard	“For the welfare of the poor and landless” – broader social welfare test.	“National government infrastructure” – narrower, but large-scale.
Initial Deposit	15 % of fair market value as shown in tax declaration.	50 % of zonal value + full improvements (or 100 % under R.A. 8974 for older projects).
Valuation Basis	City/Municipal Assessor’s schedule of values.	Independent appraisers + replacement cost.
Approving Body	Sanggunian ordinance required.	DPWH Secretary approval (or delegated official) plus DBM funding clearance.

10. Practical Guidance

For DPWH Project Teams

Integrate ROW planning in feasibility stage; treat land as a critical path item.
Budget realistically using market reconnaissance, not zonal values.
Document every negotiation— minutes, signatures, photos, GPS points.

For Landowners & Occupants

Check your title status early; consolidate heirs; secure tax clearances.
Insist on appraisal reports; you may propose your own valuation evidence (broker’s opinion, comparable sales).
Withdraw the initial court deposit; it does not waive your right to a higher award.
File claims for consequential damages (loss of business, impairment of access) within the expropriation case.

Remedies & Deadlines

Opposition to Complaint – 15 days from service.
Objections to Commissioners’ Report – 10 days from notice.
Appeal – 15 days from receipt of judgment (RTC → CA).

11. Emerging Trends

Digital ROW Information Systems – DPWH pilots GIS-based parcel mapping to cut validation time.
PPP & ODA-Funded Projects – Lenders insist on stricter social safeguards; leads to higher compensation standards.
Climate-Resilient Infrastructure – More coastal dikes & river easements, implicating relocation of fishing communities.
Legislative Proposals – Bills seeking a Uniform Land Valuation Reform and a National Resettlement & Compensation Fund to standardize payments.

12. Conclusion

Eminent domain remains indispensable to Philippine infrastructure development. The DPWH, guided by R.A. 10752 and recent jurisprudence, has moved away from purely zonal-value metrics toward full replacement compensation, but delays persist where valuation and social issues intersect. Effective ROW acquisition now demands early stakeholder engagement, realistic budgeting, transparent appraisal, and efficient court strategy. Mastery of the legal and procedural landscape outlined above is therefore critical for practitioners, project managers, and property owners alike.

13. Quick Reference Flow (Text-Only)

Project Identification → Feasibility & Alignment Fixing →
Socio-Economic & Environmental Study → ROW & Resettlement Plan →
Negotiated Sale (30 days) →  
   └→ Success → Payment & Transfer of Title  
   └→ Failure → File Expropriation (RTC) → Deposit → Writ of Possession →
      Commissioners’ Hearing → Court Valuation Judgment → Pay Balance →
      Transfer of Title → Project Implementation

14. Glossary

Term	Meaning
Eminent Domain	Inherent State power to appropriate private property for public use with just compensation.
Expropriation	Judicial action to implement eminent domain, governed by Rule 67.
Just Compensation	Fair equivalent of the property, measured as of the date of taking, plus interest.
Writ of Possession	Court order placing the State in immediate possession after required deposit.
Project Affected Person (PAP)	Any individual, household, or entity losing land, structures, or livelihood due to a project.
Replacement Cost	Market value of land plus expenses to replicate improvements, free of depreciation.

Prepared June 26 2025, Manila, Philippines.