THE THREE inherent powers of the State are eminent domain, police power and taxation. I would like to give certain weight on the topic of eminent domain.
The government has right of eminent domain. This means that the government can use a private property for a road, railroad or any other public infrastructure. But the government must pay just compensation to the land owner.
This process may sound easy and may be done as fast as possible. But it’s not always the case. In reality, this may end up in court over the computation of just compensation.
For example, the Department of Public Works and Highway (DPWH) is an infrastructure agency and has a unit that concentrates on right-of-way acquisitions. Right-of-way issues are one of the problems why there are delays in government projects. Even some of my clients are affected by this issue.
In cases of expropriation for government infrastructure, the law requires that the government should immediately pay the land owner 100 percent of the market value of the property. Only by then the government will have the right to enter or take possession of the property.
This procedure is indispensable. It means that the government is required to pay the landowner before it may acquire the possession over the property to be expropriated.
Section 4 of Republic Act (RA) 8974, otherwise known as “An Act to Facilitate the Acquisition of Right-of-Way, Site or Location for National Government Infrastructure Projects”, provides that “whenever it is necessary to acquire real property for the right-of-way or locations for any national government infrastructure project through expropriation, the appropriate implementing agency shall initiate the expropriation proceedings before the proper court.”
The preceding paragraph means that it can only be done “upon the filing of the complaint, and after due notice to the defendant, the implementing agency shall immediately pay the owner of the property the amount equivalent to the sum of 100 percent of the value of the property.”
The law mandates the actual payment of the government before taking possession of the property.
The delay in payments is also a delay in government projects. It may mean wasted resources on a project that will not be completed on time.
We are experiencing compensation backlogs. There is a need for more initiative and appreciation of time value of money.
The lawmakers are about to approve the budget for 2021 and we do hope that this includes a solution to right-of-way issues./PN
