What You Need to Know About the Accelerated and Reformed Right-of-Way (ARROW) Act (RA 12289)

(c) ABS-CBN News

On September 12, 2025, President Ferdinand “Bongbong” Marcos Jr. signed into law Republic Act No. 12289, also known as the Accelerated and Reformed Right-Of-Way (ARROW) Act. Sponsored by Sen. Mark Villar, the ARROW Act aims to streamline, modernize, and accelerate right-of-way (ROW) acquisition for national infrastructure projects—while ensuring fair, transparent, and equitable compensation for affected landowners.

The law updates and amends key provisions of the previous Right-of-Way Act (RA 10752), removing long-standing bottlenecks that have historically slowed down roads, railways, airports, utilities, and other strategic government investments.

1. Expanded Coverage of Public Services

The ARROW Act now applies not only to traditional government infrastructure projects but also to private entities providing public services, such as:

• Electricity distribution and transmission

• Petroleum and petroleum product pipelines

• Water and wastewater pipeline systems

• Telecommunications, internet, and connectivity projects

• Airports and seaports

• Irrigation systems

• Similar public service utilities

This ensures faster rollout of critical utilities and services across the country, especially in underserved regions.

2. Fair and Updated Compensation Standards

The law introduces clearer and more standardized valuation rules for affected properties.The initial price offer in negotiated sales will now be based on the Schedule of Market Values (SMV) under RA 12001, ensuring:

• Consistent valuation across LGUs

• Transparent and predictable pricing

• A fairer starting point for negotiations

This modernized approach aims to eliminate outdated and inconsistent land valuation practices that often delay project implementation.

3. Additional Entitlements for Affected Parties

Beyond land and structures, the ARROW Act ensures that affected families and businesses receive comprehensive support to help restore their standard of living. Entitlements may include:

• Transportation costs

• Subsistence allowance

• Resettlement assistance or rental subsidy

• Compensation for business income loss

• Skills training for livelihood restoration

This ensures humane and equitable treatment for individuals and communities impacted by infrastructure projects.

4. Making the Philippines “Subway-Ready”

One of the landmark provisions reduces the subsurface ROW depth for priority infrastructure from 50 meters to 18 meters.This aligns ROW requirements with global engineering standards, enabling:

• Efficient subway and underground railway projects

• Smoother construction of underground utilities

• Lower construction complexity and costs

The change directly supports the development of modern urban transit systems.

5. Strengthening Transparency and Public Accountability

The ARROW Act requires implementing agencies and authorized private entities to publish key ROW information on their official websites, including:

• Status of ROW claims

• Expropriation cases

• Disclosures required under the Data Privacy Act

All concerned agencies—including GOCCs and private companies—must share all necessary data to ensure transparency throughout the ROW process.

6. Tougher Penalties for Non-Compliance

Officers of private entities involved in public service projects may face civil or criminal penalties for violating the Act. This ensures:

• Stricter adherence to fair ROW procedures

• Greater accountability among both public and private stakeholders

• Reduced cases of abuse and delays

This is a major step toward professionalizing ROW handling nationwide.

The ARROW Act represents one of the most significant reforms in the Philippines’ infrastructure development framework. By ensuring faster, transparent, and fair right-of-way acquisition, the law supports the government’s goal of delivering modern, world-class infrastructure—from subways and railways to highways and digital connectivity.

Ultimately, RA 12289 empowers both landowners and the government, creating a balanced system that accelerates national progress without compromising fairness and accountability.