Republic Act No. 12289, or the Accelerated and Reformed Right-of-Way (ARROW) Act, was signed into law on 12 September 2025 by President Ferdinand R. Marcos, Jr. This landmark reform strengthens and modernizes the legal framework governing right-of-way (ROW) acquisition for national infrastructure projects and selected private entities performing public services.

1. Policy Objectives

RA 12289 seeks to:

• Accelerate infrastructure implementation by streamlining ROW processes and minimizing delays tied to valuation disputes, expropriation bottlenecks, and procedural gaps;
• Ensure prompt and fair compensation to landowners and project-affected persons (PAPs), grounded in a consistent, nationally applied valuation framework aligned with the Real Property Valuation and Assessment Reform Act (RA 12001); and
• Reinforce transparency and accountability, deterring corruption and enhancing investor confidence in the country’s infrastructure pipeline.

2. Key Amendments to Right of Way Act

a. Expanded Coverage of ROW Acquisition

Section 3 of RA 10752 is extensively amended to include not only national government infrastructure projects but also private entities providing public services (e.g., electricity distribution/transmission, water and wastewater systems, petroleum pipelines, telecommunications, airports/seaports, and irrigation systems.

A distinction is made between entities with legislative franchises vested with eminent domain, and those with purely administrative franchises, which do not automatically carry expropriation authority.

b. Modernized Valuation Framework

The ARROW Act introduces a uniform valuation scheme:

• Primary Basis: Schedule of Market Values (SMV) under RA 12001
• Fallback Basis:
  • BIR zonal valuation
  • Assessed value of improvements
  • Replacement cost for eligible machinery, structures, crops, and trees

For untitled lands, documentary requirements include tax declarations, affidavits of disinterested residents, DENR certifications, RPT certificates, and technical descriptions.

c. Revised Expropriation Guidelines

When filing an expropriation complaint, the implementing agency or authorized private entity must now deposit:

• 15% of the land’s market value;
• 100% of replacement cost for improvements (inclusive of depreciation); and
• 15% of market value for crops and trees.

These changes aim to deter frivolous expropriation filings and assure landowners of timely compensation.

d. Relocation of Informal Settlers

The Act mandates the Department of Human Settlements and Urban Development (DHSUD) and LGUs to collaboratively provide resettlement sites for informal settlers affected by national projects.

This codifies a more structured approach to social safeguards.

e. Updated Rules for PPP Projects

ROW acquisition for public-private partnership initiatives must now strictly follow the PPP Code of 2023 (RA 11966) and its IRR. This ensures uniform procedures and mitigates delays stemming from multi-agency approvals.

f. Accountability of Private Entities

Private entities violating the ARROW Act may face civil or criminal sanctions, with liability extending to responsible officers (presidents, directors, trustees, or managers).

g. Subsurface Rights Acquisition

The ARROW Act modernizes subsurface acquisition rules:

• Entry and use now permitted beyond 40 meters below ground (previously 50 meters).

Priority national infrastructure projects may access depths of up to 18 meters, enabling subway and tunneling systems to proceed with fewer legal impediments

3. Implementing Agencies and Expanded Oversight

RA 12289 significantly broadens the inter-agency group tasked with drafting and implementing the IRR.

This now includes agencies such as:

• DA
• DILG
• DAR
• DENR
• Department of Economy, Planning, and Development, among others

This expanded oversight aims to reduce overlap, improve coordination, and ensure applicability across varied project landscapes.

4. Practical Impact and Market Outlook

a. Faster Infrastructure Rollout

The Act is expected to substantially reduce project delays, particularly those caused by TROs, land valuation disputes, and resettlement issues. Stakeholders anticipate accelerated timelines under the “Build Better More” agenda.

b. Increased Investor Confidence

International and domestic investors view the ARROW Act as a structural reform that enhances predictability in ROW acquisition, which is an area previously plagued by inconsistent enforcement and corruption vulnerabilities.

c. Improved Delivery of Public Services

The Act covers ROW acquisition for utilities critical to public welfare: water, telecom, energy, and transport systems. This is expected to enhance service reliability and expand coverage, particularly in underserved regions.

5. Conclusion

RA 12289 represents the most comprehensive reform to the Philippines’ ROW framework since 2016. With its strengthened valuation rules, enhanced coordination mechanisms, and broadened coverage, the ARROW Act is designed to reduce long-standing bottlenecks, protect landowner rights, and support national ambitions for large-scale infrastructure modernization.