EXPLAINER

Philippines: Can Manila fix its right-of-way (ROW) woes? Yes, smoother transport even in an overcrowded capital is possible, here's how

'Whole-of-nation' strategy can help solve traffic mess, but it requires a little magic

Last updated:
6 MIN READ
Traffic in Metro Manila earned top rank as the 'worst in the world' for a Metro area in 2024. A scene on EDSA taken on June 1, 2022. How to solve it? Enhance more public transport networks, like overhead and underground trains. But these are easier said than done, given the right-of-way (ROW) snags.
Traffic in Metro Manila earned top rank as the 'worst in the world' for a Metro area in 2024. A scene on EDSA taken on June 1, 2022. How to solve it? Enhance more public transport networks, like overhead and underground trains. But these are easier said than done, given the right-of-way (ROW) snags.
X | @goodkidbikecity

(Second of a three-part series)

Manila: Road snarls in the Philippine capital are a perplexing dilemma.

Right-of-way (ROW) nightmares have turned multi-billion-dollar infrastructure projects into a never-ending saga of delays.

It's like a self-inflicted wound.

After all, we’re talking about the most overcrowded city on Earth, where even sidewalks feel like rush-hour traffic.

You can do magic

Is it even possible to solve it?

Surprisingly, the answer is a resounding yes.

Knowing the underlying causes helps. A number of solutions or strategies, combined, stares everyone in the face.

But don’t celebrate just yet: It’s going to take a ton of hard work and, maybe, a little magic.

Highest population city for a metropolis

In this highest-density metropolis, with 73,920 people per km2 (2020 data), and the country as a whole, ROW woes are the biggest headache for any infrastructure project.

Whether it's roads, freeways, overhead railways and even the under-construction $8.5-billion Manila Subway — they get stuck in legal snags due to ROW challenges, which are relentless and inevitable (i.e. where do you locate the "Tube" stations that eventually surface to the ground?).

In this day and age, it's not that hard to imagine a solution under the law, and using basic compute power.

A good starting point: quality data.

Why good data is needed

The first hurdle, even before breaking ground on a project, is understanding the legal framework.

That's aside, of course, from improving governance and combating corruption and bureaucracy.

Two legislations govern ROW in the country: the Civil Code and Republic Act No. 10752, known as "The Right-of-Way Act."

Civil Code of the Philippines:

Articles 649 to 657 of the Civil Code outline the conditions under which a property owner may demand a legal "easement of right of way".

These provisions specify that an owner of an isolated estate, lacking adequate access to a public road, may request a right of way through neighboring properties, subject to payment of just compensation.

The law provides that the easement should cause the least damage to the servient estate and, whenever feasible, be established on the shortest route to the public highway.

The Right-of-Way Act

Republic Act (RA) No. 10752 (The Right-of-Way Act): Enacted in 2016, this law facilitates the acquisition of private property for national government infrastructure projects.

It provides guidelines for determining just compensation, which is based on current market value, and outlines procedures for negotiation and, if necessary, expropriation.

The Act aims to streamline the acquisition process to prevent delays in the implementation of vital infrastructure developments.

RA 10752 also bans giving money to "informal settlers" affected by a government project, and requires project proponents to relocated them in a site with "basic services and facilities."

This is the biggest cog: Where quality data comes in?

Since the relocation requirement is part of the laws of the land, failure to plan for ROW issues before they even arise means planning to fail.

Verification of informal settlers

What constitutes an "informal settler"? How many are they? How do you guard against scammers, i.e. a person or groups out to scam the government by gaming RA 10752.

Answer these questions and you solve half of the problem.

Verification and audit of informal settlers' community affected by a specific project is key.

The ROW Act (RA 10752) bans giving money to "informal settlers" affected by a government project, and requires project proponents to give them decent relocation.

Planners then must take this into careful consideration: Failing to plan, is planning to fail.

How much would it cost to relocate them?

What roles should different agencies — the Department of Social Welfare and Development (DSWD), the Department of Human Settlements and Urban Development, Philippine Statistics Authority, Department of Justic, Department of Labour, Department of Local Government, Department of Environment and Natural Resources, the Department of Information and Communications Technology (DICT) and other relevant agencies — play in solving this problem?

And how can these different departments check each other to avoid "leaks" and be a part of the solution, instead of the problem?

'Whole-of-nation' strategy

There's no getting around adherence to the law, especially RA 10752. "Basic facilities" today would mean:

  • Water

  • Electricity

  • Sanitation/sewage system

  • Schools and Internet

  • Access to transportation

  • Security

A closer look reveals a simple fact: access to basic services and facilities are Constitutionally-guaranteed rights (i.e. "to build a just and humane society").

That's why a "whole-of-nation" approach is essential to navigating complexities of meeting RA 10752 requirements of building such "flagship" undertakings.

Shortcuts would only ensnare timelines.

Why? Ensuring fair compensation (for those who will be dispossessed of their property to give way to a public project) and above-board processes hold the key to hitting delivery dates.

Relocation

It's not enough to drill the point that a big-ticket project (like the $1.54 billion MRT-7 or the $7.06 billion Manila Subway) is of "national significance", and damn the law.

Project proponents cannot ignoring relevant legislation or render insignificant the requirement "to build a just and humane society ... under the rule of law," as the Constitution prescribes.

While quality data on affected residents forms the basis for any relocation moves, as the law prescribes, there are other important matters worthy of careful considering:

Solution: High-rises for informal settlers

Here's one solution: the relocation sites need not be far and cheap. Beneficiaries should be identified and subject to certain rules, i.e. "holding" period.

Building high-rise developments for informal settlers on government land, close to urban transport network, schools, health services and facilities, would meet the RA 10752 requirement.

A vertical development, one bankrolled via PPP or an "endowment fund", not only solves "squatting" and urban blight, but also helps gentrifies the area.

You want Manila to look like Singapore or BGC? Here's the solution.

Where to get the money? A number of funding sources already exists:

#1. Public-Private Partnership (PPP)

It is possible to package the relocation project well enough to make it attractive to private funding, as part of a public-private partnership (PPP) deal.

This is worth exploring: government provides land, and private sector funds the development. Several legislations exist to make it happen already:

  • Executive Order No. 423 (2005) – Establishes guidelines for government contracts, including PPPs.

  • Republic Act No. 10752 (ROW Act, 2016) – Governs land acquisition for infrastructure and mass housing projects.

  • Republic Act No. 11201 (2019), which creates the Department of Human Settlements and Urban Development (DHSUD)

  • Republic Act No. 10884 (2016) – Enhances private sector participation in socialised housing.

If a PPP package is not immediately feasible, creating an urban housing "endowment fund" could be a near-term solution.

#2. Philippine Endowment Fund for Urban Development

Creating a government-backed endowment fund to solve ROW and boost urban development is feasible under the law. Again, it requires the “whole-of-nation” strategy.

First, establishing such a fund requires compliance with legal and financial regulations. Key aspects:

Legal basis

  • Requires an enabling law (Act of Congress) or Executive Order.

  • National-level funds need Congressional approval (Republic Act).

  • Local funds may be created through LGU ordinances under the Local Government Code (R.A. 7160).

Funding sources

  • National Budget (General Appropriations Act) – Must be approved by Congress.

  • GOCC contributions (R.A. 10149) – Subject to government oversight.

  • Private donations – This is a big one, practised many countries, except the Philippines. Many Filipino multi-billionaires are happy to help, but don’t know how; or are unsure about the fund management. Clear rules and way for donors to adhere to tax laws (BIR), would facilitate the flow of private endowsments for this purpose.

  • Foreign grants – Subject to Commission on Audit (COA) audits and Official Development Assistance (ODA) regulations.

Regulatory compliance

  • Commission on Audit (COA) – Ensures proper disbursement and auditing.

  • Department of Finance (DOF) – Regulates public fund management.

  • Bangko Sentral ng Pilipinas (BSP) – Enforces investment regulations if funds are invested.

  • Securities and Exchange Commission (SEC) – Registration required if structured as a trust or foundation.

Governance and oversight

  • Requires a governing board with public-private representation.

  • Must comply with the Anti-Graft and Corrupt Practices Act (R.A. 3019).

  • Transparency through public disclosure and regular audits is essential.

These measures ensure accountability and prevent fund mismanagement, and promote fund longevity.

The grim alternative? More of the same traffic mess and urban blight in the capital, and costly delays borne by every resident.

Outcome?

The potential outcome: A revolution in public housing and transport services, propeling infrastructure forward, and accelerating long-term development vision.

Takeaways

  • These may be tiny cogs, but they keep the bigger machine of nation-building running.

  • If the development process is above-board and the outcome serves the common good, everyone will buy into the cost.

  • No quick fixes here — just smart, steady problem-solving and sharp strategy. Patience, logic, and a cool head will lead toward real solutions.

  • Question: What would it take to start, and when?

Sign up for the Daily Briefing

Get the latest news and updates straight to your inbox