INSIDER VIEW | Fast-tracking ROW to drive PPP acceleration

Public-Private Partnerships (PPPs) thrive on certainty. Investors, contractors, andfinanciers will not commit billions of pesos without a stable and predictable legal and institutional environment.

One of the biggest hurdles in the Philippine PPP landscape is right-of-way (ROW) acquisition. Without timely access to land, even the most financially sound projects can stall or face costly delays, regardless of their long-term viability.

Republic Act No. 12289, or the Accelerated and Reform Right-of-Way (ARROW) Act, was enacted precisely to break these bottlenecks. It equips government agencies with sharper tools to acquire land for both national and local projects, including those implemented under the PPP Code of the Philippines (RA 11966). 

ARROW expressly covers national government infrastructure projects implemented through PPPs, aligning ROW  processes with private sector participation.

The challenges of delayed ROW

Past infrastructure rollouts highlight how unresolved ROW issues create a domino effect:

• Construction timelines are pushed back, sometimes by years
• Project costs balloon due to inflation, idle equipment, and penalties
• Communities are displaced without timely or adequate compensation
• Investors hesitate to bid on projects with high ROW risk

For PPPs where the private partner shoulders upfront costs and is repaid through revenues, subsidies, or availability payments, ROW delays translate into higher risk, greater financing costs, and weaker project bankability.

Atty. Alberto Agra

"The road to accelerated PPPs runs through accelerated ROW. By removing one of the greatest barriers to project rollout, the ARROW Act paves the way for the faster delivery of essential services."

RA 12289: Key innovations

The ARROW Act introduces reforms designed to remove uncertainty and accelerate implementation:

• Advance acquisition and easier expropriation – The government may now acquire ROW in advance of project implementation, cutting delays before groundbreaking.
• Market-based valuation – Properties are appraised using the Schedule of Market Values developed by the Bureau of Local Government Finance, reducing valuation disputes and ensuring fair compensation.
• Streamlined negotiation and mediation – The law mandates clear procedures for negotiated sale, definitive documentation requirements, and expeditious expropriation proceedings, minimizing drawn-out administrative and court processes.
• Dedicated ROW funds – National appropriations guarantee that compensation resources are available, removing budgetary uncertainty that previously stalled acquisition.

Accelerating PPP implementation

The ARROW Act directly complements the PPP Code by reinforcing the principle that right-of-way (ROW) acquisition is primarily a government responsibility. 

With clearer processes, dedicated funding, and standardized valuation, implementing agencies and government-owned and -controlled corporations (GOCCs) can now give private proponents greater confidence that project sites will be cleared on time.

With ARROW, the Philippines takes a step closer to global best practice, where ROW risks are minimized, allocated fairly, and resolved transparently. The law:

• Strengthens investor confidence by reducing ROW-related uncertainty
• Shortens project preparation timelines, enabling faster tenders and awards
• Protects affected communities through fair and transparent compensation
• Unlocks long-delayed infrastructure projects in transport, water, flood control, fiber optics, and power transmission

Conclusion

The road to accelerated PPPs runs through accelerated ROW. By removing one of the greatest barriers to project rollout, the ARROW Act paves the way for the faster delivery of essential services. 

Faster PPPs mean faster access to modern infrastructure—and faster access means inclusive growth, resilience, and a better quality of life for Filipinos—sooner rather than later.