The Public Estates Authority is the central implementing agency tasked to undertake reclamation

projects nationwide. It took over the leasing and selling functions of the DE! insofar as reclaimed
or about to be reclaimed foreshore lands are concerned.
PEA sought the transfer to A"A!I# a private corporation# of the ownership of $$.%& hectares of the
'reedom Islands. PEA also sought to have ()*.+,- hectares of submerged areas of "anila .ay to
A"A!I.
ISSUE/ 0hether or not the transfer is valid.
HELD/ o. To allow vast areas of reclaimed lands of the public domain to be transferred to PEA as
private lands will sanction a gross violation of the constitutional ban on private corporations from
ac1uiring any kind of alienable land of the public domain.
The 2upreme 3ourt affirmed that the +,$.4& hectares of reclaimed lands comprising the 'reedom
Islands# now covered by certificates of title in the name of PEA# are alienable lands of the public
domain. The ,)(.+, hectares of submerged areas of "anila .ay remain inalienable natural
resources of the public domain. 2ince the Amended 56A seeks to transfer to A"A!I# a private
corporation# ownership of $$.%& hectares of the 'reedom Islands# such transfer is void for being
contrary to 2ection %# Article 7II of the +)4$ 3onstitution which prohibits private corporations from
ac1uiring any kind of alienable land of the public domain. 'urthermore# since the Amended 56A also
seeks to transfer to A"A!I ownership of ()*.+,- hectares of still submerged areas of "anila .ay#
such transfer is void for being contrary to 2ection (# Article 7II of the +)4$ 3onstitution which
prohibits the alienation of natural resources other than agricultural lands of the public domain