President Marcos has signed into law Republic Act No. 12289, or the Accelerated and Reformed Right-of-Way (ARROW) Act, introducing sweeping reforms to speed up the acquisition of property for infrastructure projects while ensuring just compensation for landowners.

The measure, signed on Sept. 12, amends RA No. 10752, or the Right-of-Way Act, to remove bottlenecks that have long delayed major public works and public service facilities.

Under the new law, right-of-way acquisition applies not only to national government projects but also to those of government-owned and -controlled corporations (GOCCs) and private entities providing public services such as electricity, water, telecommunications, airports, seaports, and irrigation.

Local government units may also adopt the law for their own infrastructure initiatives.

Property can be acquired through donation, negotiated sale, expropriation, or other legal means. For negotiated sales, compensation must reflect the market value of the land, the replacement cost of improvements, and the value of crops or trees.

Payment will be released in stages: 50 percent for land and 70 percent for improvements upfront, with the balance paid once the property is cleared.

In expropriation cases, agencies or private entities must deposit with the court 15 percent of the land’s market value, 100 percent of improvements, and 15 percent of crops and trees. Courts are then required to issue an immediate writ of possession without a hearing, ensuring that projects can proceed even while disputes over just compensation are settled.

The ARROW Act directs the Department of Human Settlements and Urban Development (DHSUD) and local governments to provide resettlement sites for informal settlers affected by right-of-way acquisition. If families refuse to vacate despite a writ of possession, courts may order demolition.

The law also requires advance appropriations for right-of-way costs—including surveys, resettlement, compensation, and taxes—before project implementation to prevent project suspensions due to funding shortfalls.

Implementing agencies and private entities are mandated to publish essential information about the acquisition process, including the status of claims and expropriation cases, on their websites to promote transparency and accountability.

Meanwhile, within two years of a notice of taking, no new developments or constructions can be permitted within a declared right-of-way that conflict with approved project plans.

For projects funded by official development assistance, the ARROW Act provides that the guidelines of the lending or donor institution will prevail in case of conflict with the new law’s provisions.

The law also explicitly prohibits GOCCs and implementing entities from using loans, asset sales, or higher service fees to cover right-of-way costs, requiring instead that compensation come from appropriated or authorized funds.

The ARROW Act is a top priority of the Marcos administration and was fast-tracked under the President’s directive to address long-standing right-of-way bottlenecks that have delayed vital infrastructure projects and discouraged private investment.

Special Assistant to the President for Investment and Economic Affairs Frederick Go said the ARROW Act will speed up the delivery of projects, while ensuring fair compensation and transparency.

“This is a win for both the economy and the Filipino people. It will enable better access to essential services, boost investor confidence and, more importantly, fast-track projects that will deliver safer roads, shorter commutes, reliable electricity, clean water, and increased opportunities,” he said.

“The issues surrounding right-of-way are usually the reason for delays of infrastructure projects nationwide,” he added.