It might take longer before commuters can use long-awaited transportation projects such as the Metro Manila Subway Project (MMSP) and the North-South Commuter Railway (NSCR).
According to Department of Transportation (DOTr) sources, project implementation is currently in limbo because of another issue involving right-of-way (ROW) acquisitions. Former transportation secretary Jaime Bautista initially sought legal advice from the Department of Justice (DOJ) on matters regarding compensation for those affected by these projects. While the DOTr got a reply, it has placed the DOTr in a bind as the opinion opened up a can of worms.
Bautista stepped down from his post ostensibly due to health reasons, although there had been talks that he was also axed because of the delays in the administration’s flagship projects — particularly railway projects. Newly-minted Transportation Secretary Vince Dizon was given instructions to “fast-track” the MMSP and the NCSR.
It seems, however, that this is easier said than done, given the issues raised in the DOJ legal opinion.
Multiple rules
The DOTr had sought to clarify which rule it should follow given that international donors have specific conditions, while the Philippines has its own laws.
When the DOTr enters into agreements with international organizations such as the Japan International Cooperation Agency (JICA) and the Asian Development Bank (ADB), it has to comply with the environmental and social guidelines of these organizations.
In right-of-way acquisitions, both JICA and the ADB require full compensation for people or entities that may be affected by the project before construction work can even start. Right-of-way acquisitions are important as these serve as clearance for government projects to be constructed on land belonging to others.
However, under Philippine law — specifically Republic Act 10752 or the Right-of-Way Act — the government requires specific conditions to be met before compensating those affected by the construction of infrastructure projects.
For instance, while the ADB and JICA want people to be fully compensated before the project starts, Philippine law provides for payment in tranches, and outlines conditions like the property having to be cleared of structures and trees first.
What the DOJ says
According to the DOJ’s five-page legal opinion signed on September 12, 2024, the Philippines’ loan agreements with other countries should be treated the same as executive agreements. It also pointed out that the Philippines is obliged to fulfill agreements made with international entities before RA 10752 took effect in March 2016.
“Stated otherwise, because laws apply prospectively, faithful compliance to the Loan Agreement and the Environmental Guidelines prior to the date of effectivity of RA No. 10752, or before March 25, 2016, should be upheld as valid,” said the legal opinion penned by DOJ Undersecretary Raul Vasquez.
However, the legal opinion was issued with incomplete material from the DOTr. The DOJ simply assumed that the DOTr entered into the deals before the Right-of-Way Act became law in 2016.
The Philippines in 2018 signed a P51-billion deal for the first phase of the Metro Manila Subway with JICA and another P55-billion tranche was inked just last 2024. While JICA first made a pledge to support the Philippines’ NSCR in 2015, the first tranche of the loan deal was signed in 2019.
Off-track
The legal opinion is a major blow to the progress of the projects. DOTr sources said that work on most railway projects has been stalled pending a clear way forward.
The Metro Manila Subway is already far behind its initial schedule. It was supposed to be fully operational by 2025, but challenges — including right-of-way issues, delays in payments, and the COVID-19 pandemic — slowed its progress. The subway was estimated to be fully operational by 2029.
It is designed to stretch 33 kilometers from Valenzuela to Parañaque, with 17 stations in between. Travel from one end to the other is supposed to take around 46 minutes.
Meanwhile, partial operations of the NSCR was supposed to start as soon as December 2027. However, sources said this would likely be pushed back to 2028 — the last year of the Marcos administration — with only the North extension seen to be open to the public.
The 147-kilometer NSCR will be the longest railway line in the country, connecting Clark in Pampanga down to Calamba, Laguna.
Why this matters
DOTr sources noted that JICA and ADB emphasized that individuals or groups affected by ROW acquisitions should be fully compensated before anything starts. Otherwise, the government could lose funding for its flagship infrastructure projects.
The Metro Manila Subway is estimated to cost a total of P488.5 billion. JICA will be loaning the country P370.7 billion for the project, while the Philippine government is spending P117.7 billion.
Meanwhile, the NSCR will cost around P870 billion, which will be shouldered by both the ADB and JICA.
Further delays could also increase project costs.
Sources said the DOTr has reached out to the DOJ for clarification on the legal opinion, and has submitted the loan agreements of these railway projects. They added that the country entered into most of the foreign agreements after RA 10752 was passed.
Aside from these railway projects, the DOJ opinion may also affect ongoing projects of other government agencies funded by international organizations. – Rappler.com