Mode of Compensation and Entitlement

1.  Compensation per category of assets affected

The classification or categories of assets to be compensated shall include land, structures, other improvements and crops, trees and perennial crops.

Indicative compensation and entitlements provision for which the PAPs are eligible, per classification of assets affected are outlined below but subject to acceptability of implementing local government units (these are based on Safeguards requirements of multilateral finance organizations, and may differ significantly based on Commission on Audit rules and regulations).

a.  Residential/commercial/Industrial/Institutional/Agricultural land loss.

i.  The initial offer to the PAPs shall be based on the current zonal valuation of the Bureau of Internal Revenue for the area where the property is located. If not acceptable to the PAPs, the second offer shall be based on the current market value in accordance to section 5 and 6 of RA 8974.

ii.  "Land for Land", Land swapping if feasible, shall be provided in terms of a new parcel of land of equivalent market value or biophysical, at a location acceptable under zoning laws, whichever is larger, in a nearby resettlement or suitable area with adequate physical and social infrastructure. When the affected holding has a higher value than the relocation plot, cash compensation will cover the difference in value determined on the replacement cost basis.

iii.  Holders of free patent homestead under CA 141, or the Public Lands Act will be compensated for improvements only at market rate pursuant to the provisions of RA 8974.

iv.  Holders of Certificates of Land Ownership Award (CLOA) under the Comprehensive Agrarian Reform Act shall be compensated pursuant to the provisions of RA 8974.

b.  Compensation for Structures

i.  Compensation is determined by the concerned Appraisal Committee/Resettlement Implementation Committee (RIC). Compensation in cash will be at replacement cost for the affected portion of the structure, including the cost of restoring the remaining structure, with no deduction for salvaged building materials and depreciation.

c.  Compensation for other improvements

i.  Compensation in cash at replacement cost for the affected portion of public structures to government or non-government agencies or to the community in case of a donated structure by agencies that constructed the structure.

ii.  Compensation to cover the cost of reconnecting the facilities such as water, power and telephone.

d.  Compensation for Crops, Trees and Perennials

i.  Cash compensation for perennials of commercial value as determined by the DENR or the concerned Appraisal Committee/RIC.

ii.  Affected persons will be given sufficient time to harvest crops on the subject land.

iii.  Compensation for damaged crops (palay and corn) will be at market value at the time of taking. The compensation will be based on the cost of production per ha and pro-rated to the affected area.

iv.  Entitlement for fruit-bearing trees will be based on the assessment of Provincial or Municipal Agriculturist where the project is located.

v.  Unproductive fruit-trees and lumber species will be compensated based on Cost Approach which is the summation of estimated expenses such as; seedlings, labor and inputs (fertilizer, etc.).

2.  Other types of Assistance or entitlements

a.  Disturbance Compensation - For agricultural land, affected lessees are entitled to disturbance compensation equivalent to five times the average of gross harvest for the past 3 years but not less than Php 15,000.00.

b.  Income Loss - For loss of business/income, the affected persons will be entitled to income rehabilitation assistance not to exceed Php 15,000.00 for severely affected structures or based on the latest copy of the affected persons' tax record for the period corresponding to the stoppage of business activities.

c.  Inconvenience Allowance - With severely affected structures which require relocation and new construction, affected persons will be given Php 10,000.00.

d.  Rehabilitation Assistance - Skills training and other development activities equivalent to Php 15,000.00 may be provided in coordination with other government agencies if the present means of livelihood is no longer viable.

e.  Rental Subsidy will be given to affected persons s without sufficient additional land to allow the reconstruction of their lost house under the following circumstances:

i.  The affected properties are for residential use only.

ii.  The concerned persons were physically residing in the affected structures and land at the time of the Cut-off Date.

iii.  The amount will be given for the period between the delivery of house compensation and the delivery of land compensation.

f.  Transportation Allowance or Assistance - Informal settlers in urban centers who opt to go back to their place of origin or be shifted to resettlement sites will be given transportation allowance.