The Private Sector Advisory Council (PSAC) Infrastructure Sector has recommended utilizing a portion of the Motor Vehicle Users Charge (MVUC) for land purchases to fund right of way (ROW) acquisition to fast track implementation of government infrastructure projects.
This developed as the council through PSAC Infrastructure Sector through Sabin Aboitiz, Lead Convenor of PSAC and president and CEO of Aboitiz Equity Ventures, has recommended the establishment of a Right-of-Way (ROW) Office under the Office of the President to streamline the land acquisition process.
Aside from land purchases, the council also recommended re-establishing a multi-year obligation allocation to guarantee continuous funding for ROW beyond annual budget cycles. It also urged the Department of Budget and Management (DBM) and the Public-Private Partnership (PPP) Center to align ROW budget planning with national projects to secure upfront funding, reducing reliance on post-approval budget allocations.
During the meeting with President Marcos on March 20, the Chief Executive agreed on the need for a dedicated team to address Right Of Way issues, conceding this is a major cause of delay for government infrastructure projects.
“The ROW Office, certainly I think that we have to do it -We have to do something as this is something that always comes up and the main reason why we are always delayed and we have added cost,” the President said.
The proposed office will work with relevant government agencies to resolve conflicts in ROW execution and assign dedicated lawyers to each priority industry, including transportation, energy, telecommunications, and water.
Aside from the ROW Office, the President also wants a review of the proposed Right Of Way bill, which is pending in the Senate. He said the funding requirements for ROW can be included in the proposed bill. “Let’s check the legislative status and let’s see,” adding that they expect the proposed ROW bill to be passed before the end of the 19th Congress.
One of the biggest hurdles in infrastructure development is the ROW acquisition process, which is often delayed by lengthy legal disputes, court backlogs, and bureaucratic inefficiencies. Inconsistent and limited funding, coupled with poor coordination among government agencies, add to the complexity of the process.
During the meeting, the council addressed key infrastructure concerns, including delays in the completion of the Unified Grand Central Station (UGCS)—a vital project designed to seamlessly connect Light Rail Transit Line 1 (LRT-1), Metro Rail Transit Line 3 (MRT-3), MRT-7, and the Metro Manila Subway.
Meantime, DOTr Secretary Vince Dizon said they have adopted out of the box solutions, including the granting of Interim Rental Subsidy to informal settlers who are affected by Right Of Way. Each identified affected family will get p7,000 a month for the next 18 months so that they can relocate and the project can push through. Secretary Dizon said within 18 months, the Housing Department and concerned local government unit, will prepare the relocation housing project for those affected.
Dizon said Interim Rental Subsidy was rolled out for the Malolos – Clark railway project, where 2,500 informal settler families in Calumpit, Bulacan as well as in Angeles and San Fernando in Pampanga will be affected.
The President wants to know how the Interim Rental Subsidy option works, “keep me updated and let’s see if we can replicate it for the other places.”
Aboitiz, who heads the Infrastructure Group Sector, underscored the importance of accelerating the completion of infrastructure projects to drive economic development and global competitiveness.
“Infrastructure is a powerful catalyst for economic growth—it creates jobs, enhances connectivity, and improves the quality of life for all Filipinos. The private sector stands ready to contribute its expertise, resources, and innovative solutions to support the government’s vision of a more resilient and progressive Philippines,” he said.
