Republic of the Philippines SUPREME COURT Manila

EN BANC FRANCISCO I. CHAVEZ, Petitioner, G.R. No. 164527 Present: PUNO, CJ, QU SUMB N!, "NARES#SANT A!O, SAN$O%A&#!UT ERRE', CARP O, AUSTR A#MART NE', CORONA, CARP O MORA&ES, A'CUNA, T N!A, C) CO#NA'AR O, !ARC A, %E&ASCO, NAC)URA, an* RE"ES, JJ+

# (ersus #

NATIONAL HOUSING AUTHORITY, R-II BUILDERS, INC., R-II HOLDINGS, INC., HARBOUR CENTRE PORT TER INAL, INC., !"# Pro,ul-ate*: R. REGHIS RO ERO II, Respon*ents+ Au-ust ./, 0112 3#########################################################################################3 DECISION VELASCO, $R., J.% n this Petition for Prohibition an* Man*a,us 4ith Pra5er for Te,porar5 Restrainin- Or*er an*6or 7rit of Preli,inar5 n8unction un*er Rule 9/, petitioner, in his capacit5 as ta3pa5er, see:s:
to *eclare NU&& AN$ %O $ the ;oint %enture A-ree,ent <;%A= *ate* March >, .>>? bet4een the National )ousin- Authorit5 an* R# Buil*ers, nc+ an* the S,o:e5 Mountain $e(elop,ent an* Recla,ation Pro8ect e,bo*ie* therein@ the subseAuent a,en*,ents to the sai* ;%A@ an* all other a-ree,ents si-ne* an* e3ecute* in relation thereto B including, but not li,ite* to the S,o:e5 Mountain Asset Pool A-ree,ent *ate* 09 Septe,ber .>>C an* the separate a-ree,ents for Phase an* Phase of

the Pro8ectBBas 4ell as all other transactions 4hich e,anate* therefro,, for bein- UNCONSTITUTIONAL an* INVALID@ to en8oin respon*entsDparticularl5 respon*ent N)ADfro, further i,ple,entin- an*6or enforcin- the sai* pro8ect an* other a-ree,ents relate* thereto, an* fro, further *eri(in- an*6or en8o5in- an5 ri-hts, pri(ile-es an* interest therefro, 3 3 3@ an* to co,pel respon*ents to *isclose all *ocu,ents an* infor,ation relatinto the pro8ectBBinclu*in-, but not li,ite* to, an5 subseAuent a-ree,ents 4ith respect to the *ifferent phases of the pro8ect, the re(isions o(er the ori-inal plan, the a**itional 4or:s incurre* thereon, the current financial con*ition of respon*ent R# Buil*ers, nc+, an* the transactions ,a*e respectin- the pro8ect+.

T&' F!()* On March ., .>EE, then Presi*ent CoraFon C+ AAuino issue* Me,oran*u, Or*er No+ <MO= .9.0 appro(in- an* *irectin- the i,ple,entation of the Co,prehensi(e an* nte-rate* Metropolitan Manila 7aste Mana-e,ent Plan <the Plan=+ The Metro Manila Co,,ission, in coor*ination 4ith (arious -o(ern,ent a-encies, 4as tas:e* as the lea* a-enc5 to i,ple,ent the Plan as for,ulate* b5 the Presi*ential Tas: Gorce on 7aste Mana-e,ent create* b5 Me,oran*u, Circular No+ ?>+ A *a5 after, on March 0, .>EE, MO .9.#A? 4as issue*, containin- the -ui*elines 4hich prescribe* the functions an* responsibilities of fifteen <./= (arious -o(ern,ent *epart,ents an* offices tas:e* to i,ple,ent the Plan, na,el5: $epart,ent of Public 7or:s an* )i-h4a5 <$P7)=, $epart,ent of )ealth <$O)=, $epart,ent of En(iron,ent an* Natural Resources <$ENR=, $epart,ent of Transportation an* Co,,unication, $epart,ent of Bu*-et an* Mana-e,ent, National Econo,ic an* $e(elop,ent Authorit5 <NE$A=, Philippine Constabular5 nte-rate* National Police, Philippine nfor,ation A-enc5 an* the &ocal !o(ern,ent Unit <referrin- to the Cit5 of Manila=, $epart,ent of Social 7elfare an* $e(elop,ent, Presi*ential Co,,ission for Urban Poor, National )ousin- Authorit5 <N)A=, $epart,ent of &abor an* E,plo5,ent, $epart,ent of E*ucation, Culture an* Sports <no4 $epart,ent of E*ucation=, an* Presi*ential Mana-e,ent Staff+
. 0 ?

Rollo, pp+ ?#C+ *+ at /.?+ *+ at /.?#/.C+

Specificall5, respon*ent N)A 4as or*ere* to Hcon*uct feasibilit5 stu*ies an* *e(elop lo4#cost housin- pro8ects at the *u,psite an* absorb sca(en-ers in N)A resettle,ent6lo4#cost housin- pro8ects+IC On the other han*, the $ENR 4as tas:e* to Hre(ie4 an* e(aluate propose* pro8ects un*er the Plan 4ith re-ar* to their en(iron,ental i,pact, con*uct re-ular ,onitorin- of acti(ities of the Plan to ensure co,pliance 4ith en(iron,ental stan*ar*s an* assist $O) in the con*uct of the stu*5 on hospital 4aste ,ana-e,ent+I/ At the ti,e MO .9.#A 4as issue* b5 Presi*ent AAuino, S,o:e5 Mountain 4as a 4astelan* in Balut, Ton*o, Manila, 4here nu,erous Gilipinos resi*e* in subhu,an con*itions, collectin- ite,s that ,a5 ha(e so,e ,onetar5 (alue fro, the -arba-e+ The S,o:e5 Mountain *u,psite is boun*e* on the north b5 the Estero Marala, on the south b5 the propert5 of the National !o(ern,ent, on the east b5 the propert5 of B an* Realt5 Co+, an* on the 4est b5 Ra*ial Roa* .1 <R#.1=+ Pursuant to MO .9.#A, N)A prepare* the feasibilit5 stu*ies of the S,o:e5 Mountain lo4#cost housin- pro8ect 4hich resulte* in the for,ulation of the HS,o:e5 Mountain $e(elop,ent Plan an* Recla,ation of the Area Across R#.1I or the S,o:e5 Mountain $e(elop,ent an* Recla,ation Pro8ect <SM$RP@ the Pro8ect=+ The Pro8ect ai,e* to con(ert the S,o:e5 Mountain *u,psite into a habitable housin- pro8ect, inclusi(e of the recla,ation of the area across R#.1, a*8acent to the S,o:e5 Mountain as the enablin- co,ponent of the pro8ect+9 Once finaliFe*, the Plan 4as sub,itte* to Presi*ent AAuino for her appro(al+ On ;ul5 >, .>>1, the Buil*#Operate#an*#Transfer <BOT= &a4 <Republic Act No+ JRAK 9>/2= 4as enacte*+ 2
C / 9 2

ts *eclare* polic5 un*er

*+ at /./+ *+ at /.?+ *+ at 0>2@ Procla,ation No+ ?> *ate* Septe,ber >, .>>0+ RA 22.E 4as later enacte* on Ma5 /, .>>C, a,en*in- certain sections of the BOT &a4+

Section . is HJtKo reco-niFe the in*ispensable role of the pri(ate sector as the ,ain en-ine for national -ro4th an* *e(elop,ent an* pro(i*e the ,ost appropriate fa(orable incenti(es to ,obiliFe pri(ate resources for the purpose+I Sec+ ? authoriFe* an* e,po4ere* HJaKll -o(ern,ent infrastructure a-encies, inclu*in- -o(ern,ent#o4ne* an* controlle* corporations an* local -o(ern,ent units 3 3 3 to enter into contract 4ith an5 *ul5 pre# Aualifie* pri(ate contractor for the financin-, construction, operation an* ,aintenance of an5 financiall5 (iable infrastructure facilities throu-h the buil*#operate#transfer or buil* an* transfer sche,e+I RA 9>/2 *efine* Hbuil*#an*#transferI sche,e as HJaK contractual arran-e,ent 4hereb5 the contractor un*erta:es the construction, inclu*infinancin-, of a -i(en infrastructure facilit5, an* its turno(er after the co,pletion to the -o(ern,ent a-enc5 or local -o(ern,ent unit concerne* 4hich shall pa5 the contractor its total in(est,ent e3pen*e* on the pro8ect, plus reasonable rate of return thereon+I The last para-raph of Sec+ 9 of the BOT &a4 pro(i*es that the repa5,ent sche,e in the case of Hlan* recla,ation or the buil*in- of in*ustrial estatesI ,a5 consist of HJtKhe -rant of a portion or percenta-e of the reclai,e* lan* or in*ustrial estate built, sub8ect to the constitutional reAuire,ents 4ith respect to the o4nership of lan*s+I On Gebruar5 .1, .>>0, ;oint Resolution No+ 1? E 4as passe* b5 both houses of Con-ress+ Sec+ . of this resolution pro(i*e*, a,on- other thin-s, that:
Section .+ There is hereb5 appro(e* the follo4in- national infrastructure pro8ects for i,ple,entation un*er the pro(isions of Republic Act No+ 9>/2 an* its i,ple,entin- rules an* re-ulations: 3333 <*= Port infrastructure li:e piers, 4har(es, Aua5s, stora-e han*lin-, ferr5 ser(ice an* relate* facilities@

H;oint Resolution Appro(in- the &ist of National Pro8ects to be Un*erta:en b5 the Pri(ate Sector Pursuant to Republic Act No+ 9>/2+I

3333 <:= facilities@ &an* recla,ation, *re*-in- an* other relate* *e(elop,ent

<l= n*ustrial estates, re-ional in*ustrial centers an* e3port processin- Fones inclu*in- steel ,ills, iron#,a:in- an* petroche,ical co,ple3es an* relate* infrastructure an* utilities@ 3333 <p= En(iron,ental an* soli* 4aste ,ana-e,ent#relate* facilities such as collection eAuip,ent, co,postin- plants, incinerators, lan*fill an* ti*al barriers, a,on- others@ an* <A= $e(elop,ent of ne4 to4nsites an* co,,unities an* relate* facilities+

This resolution co,plie* 4ith an* confor,e* to Sec+ C of the BOT &a4 reAuirin- the appro(al of all national infrastructure pro8ects b5 the Con-ress+ On ;anuar5 .2, .>>0, Presi*ent AAuino proclai,e* MO C./> appro(in- an* *irectin- the i,ple,entation of the SM$RP+ Secs+ ? an* C of the Me,oran*u, Or*er state*:
Section ?+ The National )ousin- Authorit5 is hereb5 *irecte* to i,ple,ent the S,o:e5 Mountain $e(elop,ent Plan an* Recla,ation of the Area Across R#.1 )&+o,-& ! .+/0!)' *'()o+ 1o/") 0'"),+' *(&'2' !) )&' 3'!*) (o*) )o )&' -o0'+"2'")+ Section C+ The lan* area co(ere* b5 the S,o:e5 Mountain *u,psite is hereb5 con(e5e* to the National )ousin- Authorit5 as 4ell as the area to be reclai,e* across R#.1+ <E,phasis supplie*+=

n a**ition, the Public Estates Authorit5 <PEA= 4as *irecte* to assist in the e(aluation of proposals re-ar*in- the technical feasibilit5 of recla,ation, 4hile the $ENR 4as *irecte* to <.= facilitate titlin- of S,o:e5 Mountain an* of the area to be reclai,e* an* <0= assist in the technical e(aluation of proposals re-ar*in- en(iron,ental i,pact state,ents+.1

> .1

Rollo, pp+ /.>#/0.+ *+ at 0>9+

n the sa,e MO C./, Presi*ent AAuino create* an E3ecuti(e Co,,ittee <ELECOM= to o(ersee the i,ple,entation of the Plan, chaire* b5 the National Capital Re-ion#Cabinet Officer for Re-ional $e(elop,ent <NCR#COR$= 4ith the hea*s of the N)A, Cit5 of Manila, $P7), PEA, Philippine Ports Authorit5 <PPA=, $ENR, an* $e(elop,ent Ban: of the Philippines <$BP= as ,e,bers+.. The NE$A subseAuentl5 beca,e a ,e,ber of the ELECOM+ Notabl5, in a Septe,ber 0, .>>C &etter, .0 PEA !eneral Mana-er A,a*o &a-*a,eo appro(e* the plans for the recla,ation pro8ect prepare* b5 the N)A+ n confor,it5 4ith Sec+ / of MO C./, an inter#a-enc5 technical co,,ittee <TEC)COM= 4as create* co,pose* of the technical representati(es of the ELECOM HJtKo assist the N)A in the e(aluation of the pro8ect proposals, assist in the resolution of all issues an* proble,s in the pro8ect to ensure that all aspects of the *e(elop,ent fro, sAuatter relocation, 4aste ,ana-e,ent, recla,ation, en(iron,ental protection, lan* an* house construction ,eet -o(ernin- re-ulation of the re-ion an* to facilitate the co,pletion of the pro8ect+I.? SubseAuentl5, the TEC)COM put out the Public Notice an* Notice to Pre#Qualif5 an* Bi* for the ri-ht to beco,e N)AMs 8oint (enture partner in the i,ple,entation of the SM$RP+ The notices 4ere publishe* in ne4spapers of -eneral circulation on ;anuar5 0? an* 09 an* Gebruar5 ., .C, .9, an* 0?, .>>0, respecti(el5+ Out of the thirteen <.?= contractors 4ho respon*e*, onl5 fi(e </= contractors full5 co,plie* 4ith the reAuire* pre# Aualification *ocu,ents+ Base* on the e(aluation of the pre#Aualification *ocu,ents, the ELECOM *eclare* the Ne4 San ;ose Buil*ers, nc+ an* R# Buil*ers, nc+ <RB = as the top t4o contractors+.C

.. .0 .? .C

*+ at 0>/+ *+ at C?9+ *+ at C29+ *+ at C22+

Thereafter, the TEC)COM e(aluate* the bi*s <4hich inclu*e the Pre# feasibilit5 Stu*5 an* Ginancin- Plan= of the top t4o <0= contractors in this ,anner: <.= The $BP, as financial a*(isor to the Pro8ect, e(aluate* their

Ginancial Proposals@ <0= The $P7), PPA, PEA an* N)A e(aluate* the Technical

Proposals for the )ousin- Construction an* Recla,ation@ <?= The $ENR e(aluate* Technical Proposals on 7aste ,pact

Mana-e,ent an* $isposal b5 con*uctin- the En(iron,ental Anal5sis@ an* <C=

The N)A an* the Cit5 of Manila e(aluate* the socio#econo,ic

benefits presente* b5 the proposals+ On ;une ?1, .>>0, Gi*el %+ Ra,os assu,e* the Office of the Presi*ent <OP= of the Philippines+ On Au-ust ?., .>>0, the TEC)COM sub,itte* its reco,,en*ation to the ELECOM to appro(e the R# -arnere* the hi-hest score of EE+C2/N+ Buil*ers, nc+ <RB = proposal 4hich

SubseAuentl5, the ELECOM ,a*e a Pro8ect briefin- to Presi*ent Ra,os+ As a result, Presi*ent Ra,os issue* Procla,ation No+ ?> ./ on Septe,ber >, .>>0, 4hich rea*s:
7)EREAS, the National )ousin- Authorit5 has presente* a (iable conceptual plan to con(ert the S,o:e5 Mountain *u,psite into a habitable housin- pro8ect, inclusi(e of the recla,ation of the area across Roa* Ra*ial .1 <R#.1= a*8acent to the S,o:e5 Mountain as the enablinco,ponent of the pro8ect@
./

*+ at 0>2#0>E+

3333 T&'*' .!+('3* o4 3!"# o4 .,53/( #o2!/" !+' &'+'56 .3!('# ,"#'+ )&' !#2/"/*)+!)/o" !"# #/*.o*/)/o" o4 )&' N!)/o"!3 Ho,*/"A,)&o+/)6 )o #'0'3o., *,5#/0/#' !"# #/*.o*' )o 7,!3/4/'# 5'"'4/(/!+/'*, !* 8'33 !* /)* #'0'3o.2'") 4o+ 2/9 3!"# ,*' :(o22'+(/!3;/"#,*)+/!3< )o .+o0/#' '2.3o62'") o..o+),"/)/'* )o o"-*/)' 4!2/3/'* !"# !##/)/o"!3 !+'!* 4o+ .o+)-+'3!)'# !()/0/)/'*. n or*er to facilitate the earl5 *e(elop,ent of the area for *isposition, the $epart,ent of En(iron,ent an* Natural Resources, throu-h the &an*s an* Mana-e,ent Bureau, is hereb5 *irecte* to appro(e the boun*ar5 an* sub*i(ision sur(e5 an* to issue a special patent an* title in the na,e of the National )ousin- Authorit5, sub8ect to final sur(e5 an* pri(ate ri-hts, if an5 there be+ <E,phasis supplie*+=

On October 2, .>>0, Presi*ent Ra,os authoriFe* N)A to enter into a ;oint %enture A-ree,ent 4ith RB HJsKub8ect to final re(ie4 an* appro(al of the ;oint %enture A-ree,ent b5 the Office of the Presi*ent+I.9 On March .>, .>>?, the N)A an* RB entere* into a ;oint %enture A-ree,ent.2 <;%A= for the *e(elop,ent of the S,o:e5 Mountain *u,psite an* the recla,ation of the area across R#.1 base* on Presi*ential $ecree No+ <P$= 2/2.E 4hich ,an*ate* N)A HJtKo un*erta:e the ph5sical an* socio#econo,ic up-ra*in- an* *e(elop,ent of lan*s of the public *o,ain i*entifie* for housin-,I MO .9.#A 4hich reAuire* N)A to con*uct the feasibilit5 stu*ies an* *e(elop a lo4#cost housin- pro8ect at the S,o:e5 Mountain, an* MO C./ as a,en*e* b5 MO C./#A 4hich appro(e* the Conceptual Plan for S,o:e5 Mountain an* creation of the ELECOM an* TEC)COM+ Un*er the ;%A, the Pro8ect Hin(ol(es the clearin- of S,o:e5 Mountain for e(entual *e(elop,ent into a lo4 cost ,e*iu, rise housinco,ple3 an* in*ustrial6co,,ercial site 4ith the recla,ation of the area *irectl5 across JR#.1K to act as the enablin- co,ponent of the Pro8ect+I .> The ;%A co(ere* a lot in Ton*o, Manila 4ith an area of t4o hun*re* t4el(e thousan* t4o hun*re* thirt5#four <0.0,0?C= sAuare ,eters an* another lot to
.9 .2

*+ at C2>+ *+ at 9>#2>+ .E HCreatin- the National )ousin- Authorit5 an* $issol(in- the E3istin- )ousin- A-encies, $efinin- its Po4ers an* Gunctions, Pro(i*in- Gun*s Therefor, an* for Other PurposesI <.>2/=+
.>

Rollo, p+ 21+

be reclai,e* also in Ton*o 4ith an area of four hun*re* thousan* <C11,111= sAuare ,eters+ The Scope of 7or: of RB un*er Article of the ;%A is as follo4s:

a= To full5 finance all aspects of *e(elop,ent of S,o:e5 Mountain an* recla,ation of no ,ore than C1 hectares of Manila Ba5 area across Ra*ial Roa* .1+ b= To i,,e*iatel5 co,,ence on the preparation of feasibilit5 report an* *etaile* en-ineerin- 4ith e,phasis to the e3pe*ient acAuisition of the En(iron,ental Clearance Certificate <ECC= fro, the $ENR+ c= The construction acti(ities 4ill onl5 co,,ence after the acAuisition of the ECC, an* *= Ginal *etails of the contract, inclu*in- construction, *uration an* *eli(er5 ti,etables, shall be base* on the appro(e* feasibilit5 report an* *etaile* en-ineerin-+

Other obli-ations of RB are as follo4s:

0+10 The JRB K shall *e(elop the PRO;ECT base* on the Ginal Report an* $etaile* En-ineerin- as appro(e* b5 the Office of the Presi*ent+ All costs an* e3penses for hirin- technical personnel, *ate -atherin-, per,its, licenses, appraisals, clearances, testin- an* si,ilar un*erta:in- shall be for the account of the JRB K+ 0+1? The JRB K shall un*erta:e the construction of ?,/11 te,porar5 housin- units co,plete 4ith basic a,enities such as plu,bin-, electrical an* se4era-e facilities 4ithin the te,porar5 housin- pro8ect as sta-in- area to te,poraril5 house the sAuatter fa,ilies fro, the S,o:e5 Mountain 4hile *e(elop,ent is bein- un*erta:en+ These te,porar5 housin- units shall be turne* o(er to the JN)AK for *isposition+ 0+1C The JRB K shall construct ?,/11 ,e*iu, rise lo4 cost per,anent housin- units on the le(ele* S,o:e5 Mountain co,plete 4ith basic utilities an* a,enities, in accor*ance 4ith the plans an* specifications set forth in the Ginal Report appro(e* b5 the JN)AK+ Co,plete* units rea*5 for ,ort-a-e ta:e out shall be turne* o(er b5 the JRB K to N)A on a-ree* sche*ule+ 0+1/ The JRB K shall reclai, fort5 <C1= hectares of Manila Ba5 area *irectl5 across JR#.1K as containe* in Procla,ation No+ ?> as the enablin- co,ponent of the pro8ect an* pa5,ent to the JRB K as its asset share+ 0+19 The JRB K shall li:e4ise furnish all labor ,aterials an* eAuip,ent necessar5 to co,plete all herein *e(elop,ent 4or:s to be un*erta:en on a phase to phase basis in accor*ance 4ith the 4or: pro-ra, stipulate* therein+

The profit sharin- shall be base* on the appro(e* pre#feasibilit5 report sub,itte* to the ELECOM, (iF: Gor the *e(eloper <RB =:
.+ To o4n the fort5 <C1= hectares of reclai,e* lan*+

0+ To o4n the co,,ercial area at the S,o:e5 Mountain area co,pose* of .+? hectares, an* ?+ To o4n all the constructe* units of ,e*iu, rise lo4 cost per,anent housin- units be5on* the ?,/11 units share of the JN)AK+

Gor the N)A:

.+ To o4n the te,porar5 housin- consistin- of ?,/11 units+

0+ To o4n the cleare* an* fence* incinerator site consistin- of / hectares situate* at the S,o:e5 Mountain area+ ?+ To o4n the ?,/11 units of per,anent housin- to be constructe* b5 JRB K at the S,o:e5 Mountain area to be a4ar*e* to Aualifie* on site resi*ents+ C+ an* /+ To o4n the open spaces, roa*s an* facilities 4ithin the S,o:e5 Mountain area+ To o4n the n*ustrial Area site consistin- of ?+0 hectares,

n the e(ent of He3traor*inar5 increase in labor, ,aterials, fuel an* non#reco(erabilit5 of total pro8ect e3penses,I01 the OP, upon reco,,en*ation of the N)A, ,a5 appro(e a correspon*in- a*8ust,ent in the enablin- co,ponent+ The functions an* responsibilities of RB an* N)A are as follo4s: Gor RB :

01

*+ at 2?+

C+1. ,,e*iatel5 co,,ence on the preparation of the G NA& REPORT 4ith e,phasis to the e3pe*ient acAuisition, 4ith the assistance of the JN)AK of En(iron,ental Co,pliance Certificate <ECC= fro, the En(iron,ental Mana-e,ent Bureau <EMB= of the J$ENRK+ Construction shall onl5 co,,ence after the acAuisition of the ECC+ The En(iron,ent Co,pliance Certificate <ECC= shall for, part of the G NA& REPORT+ The G NA& REPORT shall pro(i*e the necessar5 sub*i(ision an* housin- plans, *etaile* en-ineerin- an* architectural *ra4in-s, technical specifications an* other relate* an* reAuire* *ocu,ents relati(e to the S,o:e5 Mountain area+ 7ith respect to the C1#hectare recla,ation area, the JRB K shall ha(e the *iscretion to *e(elop the sa,e in a ,anner that it *ee,s necessar5 to reco(er the JRB MsK in(est,ent, sub8ect to en(iron,ental an* Fonin- rules+ C+10 Ginance the total pro8ect cost for lan* *e(elop,ent, housin- construction an* recla,ation of the PRO;ECT+ C+1? 7arrant that all *e(elop,ents shall be in co,pliance 4ith the reAuire,ents of the G NA& REPORT+ C+1C Pro(i*e all a*,inistrati(e resources for the sub,ission of pro8ect acco,plish,ent reports to the JN)AK for proper e(aluation an* super(ision on the actual i,ple,entation+ C+1/ Ne-otiate an* secure, 4ith the assistance of the JN)AK the -rant of ri-hts of 4a5 to the PRO;ECT, fro, the o4ners of the a*8acent lots for access roa*, 4ater, electrical po4er connections an* *raina-e facilities+ C+19 Pro(i*e te,porar5 fiel* office an* transportation (ehicles <0 units=, one <.= co,plete set of co,puter an* one <.= unit electric t5pe4riter for the JN)AMsK fiel* personnel to be char-e* to the PRO;ECT+

Gor the N)A:

C+12 The JN)AK shall be responsible for the re,o(al an* relocation of all sAuatters 4ithin S,o:e5 Mountain to the Te,porar5 )ousin- Co,ple3 or to other areas prepare* as relocation areas 4ith the assistance of the JRB K+ The JRB K shall be responsible in releasin- the fun*s allocate* an* co,,itte* for relocation as *etaile* in the G NA& REPORT+ C+1E Assist the JRB K an* shall en*orse -rantin- of e3e,ption fees in the acAuisition of all necessar5 per,its, licenses, appraisals, clearances an* accre*itations for the PRO;ECT sub8ect to e3istin- la4s, rules an* re-ulations+ C+1> The JN)AK shall inspect, e(aluate an* ,onitor all 4or:s at the S,o:e5 Mountain an* Recla,ation Area 4hile the lan* *e(elop,ent an* construction of housin- units are in pro-ress to *eter,ine 4hether the *e(elop,ent an* construction 4or:s are un*erta:en in accor*ance 4ith

the G NA& REPORT+ f in its 8u*-,ent, the PRO;ECT is not pursue* in accor*ance 4ith the G NA& REPORT, the JN)AK shall reAuire the JRB K to un*erta:e necessar5 re,e*ial 4or:s+ All e3penses, char-es an* penalties incurre* for such re,e*ial, if an5, shall be for the account of the JRB K+ C+.1 The JN)AK shall assist the JRB K in the co,plete electrification of the PRO;ECT+ 3 3 3 C+.. )an*le the processin- an* *ocu,entation of all sales transactions relate* to its assets shares fro, the (enture such as the ?,/11 units of per,anent housin- an* the allotte* in*ustrial area of ?+0 hectares+ C+.0 All a*(ances outsi*e of pro8ect costs ,a*e b5 the JRB K to the JN)AK shall be *e*ucte* fro, the procee*s *ue to the JN)AK+ C+.? The JN)AK shall be responsible for the acAuisition of the Mother Title for the S,o:e5 Mountain an* Recla,ation Area 4ithin >1 *a5s upon sub,ission of Sur(e5 returns to the &an* Mana-e,ent Sector+ The lan* titles to the C1#hectare reclai,e* lan*, the .+? hectare co,,ercial area at the S,o:e5 Mountain area an* the constructe* units of ,e*iu,#rise per,anent housin- units be5on* the ?,/11 units share of the JN)AK shall be issue* in the na,e of the JRB K upon co,pletion of the pro8ect+ )o4e(er, the JRB K shall ha(e the authorit5 to pre#sell its share as in*icate* in this a-ree,ent+

The final *etails of the ;%A, 4hich 4ill inclu*e the construction *uration, costs, e3tent of recla,ation, an* *eli(er5 ti,etables, shall be base* on the G NA& REPORT 4hich 4ill be containe* in a Supple,ental A-ree,ent to be e3ecute* later b5 the parties+ The ;%A ,a5 be ,o*ifie* or re(ise* b5 4ritten a-ree,ent bet4een the N)A an* RB specif5in- the clauses to be re(ise* or ,o*ifie* an* the correspon*in- a,en*,ents+ f the Pro8ect is re(o:e* or ter,inate* b5 the !o(ern,ent throu-h no fault of RB or b5 ,utual a-ree,ent, the !o(ern,ent shall co,pensate RB for its actual e3penses incurre* in the Pro8ect plus a reasonable rate of return not e3cee*in- that state* in the feasibilit5 stu*5 an* in the contract as of the *ate of such re(ocation, cancellation, or ter,ination on a sche*ule to be a-ree* upon b5 both parties+

As a preli,inar5 step in the pro8ect i,ple,entation, consultations an* *ialo-ues 4ere con*ucte* 4ith the settlers of the S,o:e5 Mountain $u,psite Area+ At the sa,e ti,e, $ENR starte* processin- the application for the En(iron,ental Clearance Certificate <ECC= of the SM$RP+ As a result ho4e(er of the consultati(e *ialo-ues, public hearin-s, the report on the on#site fiel* con*itions, the En(iron,ental ,pact State,ent <E S= publishe* on April 0> an* Ma5 .0, .>>? as reAuire* b5 the En(iron,ental Mana-e,ent Bureau of $ENR, the e(aluation of the $ENR, an* the reco,,en*ations fro, other -o(ern,ent a-encies, it 4as *isco(ere* that *esi-n chan-es an* a**itional 4or: ha(e to be un*erta:en to successfull5 i,ple,ent the Pro8ect+0. Thus, on Gebruar5 0., .>>C, the parties entere* into another a-ree,ent *eno,inate* as the A,en*e* an* Restate* ;oint %enture A-ree,ent00 <AR;%A= 4hich *elineate* the *ifferent phases of the Pro8ect+ Phase of the Pro8ect in(ol(es the construction of te,porar5 housin- units for the current resi*ents of the S,o:e5 Mountain *u,psite, the clearin- an* le(elin-#off of the *u,psite, an* the construction of ,e*iu,#rise lo4#cost housin- units at the cleare* an* le(ele* *u,psite+ 0? Phase of the Pro8ect in(ol(es the construction of an incineration area for the on#site *isposal of the -arba-e at the *u,psite+0C The enablin- co,ponent or consi*eration for Phase of the Pro8ect 4as increase* fro, C1 hectares of reclai,e* lan*s of ..> hectares of reclai,e* lan*s conti-uous to the across R#.1 to 2> hectares+0/ The re(ision also pro(i*e* for the enablinco,ponent for Phase 2> hectares of reclai,e* lan*s for Phase +09 Gurther,ore, the a,en*e* contract *elineate* the scope of 4or:s an* the ter,s an* con*itions of Phases an* , thus:
The PRO;ECT shall consist of Phase an* Phase +

0. 00 0? 0C 0/ 09

*+ at C2>+ *+ at E1#>C+ *+ at E?+ *+ *+ *+

Phase shall in(ol(e the follo4in-: a+ the construction of 0,>>0 units of te,porar5 housin- for the affecte* resi*ents 4hile clearin- an* *e(elop,ent of S,o:e5 Mountain JareK bein- un*erta:en the clearin- of S,o:e5 Mountain an* the subseAuent construction of ?,/01 units of ,e*iu, rise housin- an* the *e(elop,ent of the in*ustrial6co,,ercial site 4ithin the S,o:e5 Mountain area the recla,ation an* *e(elop,ent of a 2> hectare area *irectl5 across Ra*ial Roa* .1 to ser(e as the enablin- co,ponent of Phase shall in(ol(e the follo4in-: the construction an* operation of an incinerator plant that 4ill confor, to the e,ission stan*ar*s of the $ENR the recla,ation an* *e(elop,ent of ..>#hectare area conti-uous to that to be reclai,e* un*er Phase to ser(e as the enablin- co,ponent of Phase +

b+

c+

Phase a+ b+

Un*er the AR;%A, RB shall construct 0,>>0 te,porar5 housinunits, a re*uction fro, ?,/11 units un*er the ;%A+ 02 )o4e(er, it 4as reAuire* to construct ?,/01 ,e*iu,#rise lo4#cost per,anent housin- units instea* of ?,/11 units un*er the ;%A+ There 4as a substantial chan-e in the *esi-n of the per,anent housin- units such that a Hloft shall be incorporate* in each unit so as to increase the li(in- space fro, 01 to ?0 sAuare ,eters+ The a**itions an* chan-es in the Ori-inal Pro8ect Co,ponent are as follo4s:
OR ! NA& .+ TEMPORAR" )OUS N! 7oo*6Pl54oo*, -a+ ?. !+ + Sheet usable life of ? 5ears, future .0 SM floor area+ Concrete6Steel Gra,e Structure -au-e 09 !+ + roofin- sheets use as per,anent structures for factor5 an* 4arehouses ,i3e* .2 s, O .0 s, floor area+ C)AN!ES6RE% S ONS

0+

ME$ UM R SE MASS )OUS N! Bo3 t5pe precast Shelter co,ponent 01 sAuare ,eter floor area 4ith 0+C ,eter hei-ht@ bare t5pe, .91 units6 buil*in-+ Con(entional an* precast concrete structures, ?0 sAuare ,eter floor area 4ith loft floor <sleepin- Auarter= ?+9 ,+ floor hei-ht, painte* an* i,pro(e*

02

*+ at EC+

architectural faPa*e, E1 units6 buil*in-+ ?+ M T !AT N! MEASURES ?+. Gor recla,ation 4or: Use of clean *re*-efill ,aterial belo4 the M&&7 an* SM ,aterial ,i3e* 4ith *re*-efill abo(e M&&7+

a+ .11N use of S,o:e5 Mountain ,aterial as *re*-efill b+ Concrete Sheet Piles short *epth of e,be*,ent c+ Silt re,o(al appro3i,atel5 .+1 ,eter onl5

Use of Steel Sheet Piles nee*e* for lon-er *epth of e,be*,ent+

Nee* to re,o(e ,ore than ?+1 ,eters of silt after sub#soil in(esti-ation+0E

These ,aterial an* substantial ,o*ifications ser(e* as 8ustifications for the increase in the share of RB fro, C1 hectares to 2> hectares of reclai,e* lan*+ Un*er the ;%A, the specific costs of the Pro8ect 4ere not stipulate* but un*er the AR;%A, the stipulate* cost for Phase 4as pe--e* at si3 billion si3 hun*re* ninet5#three ,illion three hun*re* ei-ht5#se(en thousan* three hun*re* si3t5#four pesos <PhP 9,9>?,?E2,?9C=+ n his Gebruar5 .1, .>>C Me,oran*u,, the Chairperson of the SM$RP ELECOM sub,itte* the AR;%A for appro(al b5 the OP+ After re(ie4 of sai* a-ree,ent, the OP *irecte* that certain ter,s an* con*itions of the AR;%A be further clarifie* or a,en*e* preparator5 to its appro(al+ Pursuant to the Presi*entMs *irecti(e, the parties reache* an a-ree,ent on the clarifications an* a,en*,ents reAuire* to be ,a*e on the AR;%A+ On Au-ust .., .>>C, the N)A an* RB e3ecute* an A,en*,ent To the A,en*e* an* Restate* ;oint %enture A-ree,ent <AAR;%A= 0> clarif5in0E 0>

*+ at >?+ *+ at >/#.1C+

certain ter,s an* con*ition of the AR;%A, 4hich 4as sub,itte* to Presi*ent Ra,os for appro(al, to 4it:

Phase a+

shall in(ol(e the follo4in-:

the construction an* operation of an incinerator plant that 4ill confor, to the e,ission stan*ar*s of the $ENR

b+ the recla,ation an* *e(elop,ent of ..>#hectare area conti-uous to that to be reclai,e* un*er Phase to ser(e as the enablin- co,ponent of Phase , )&' '9!() */=' !"# (o"4/-,+!)/o" o4 8&/(& *&!33 5' !..+o0'# 56 )&' S DRP Co22/))''?1

Other substantial a,en*,ents are the follo4in-:

C+ Para-raph 0+1/ of Article rea* as follo4s:

of the AR;%A is hereb5 a,en*e* to

0+1/+ The $E%E&OPER shall reclai, se(ent5 nine <2>= hectares of the Manila Ba5 area *irectl5 across Ra*ial Roa* .1 <R# .1= to ser(e as pa5,ent to the $E%E&OPER as its asset share for Phase an* to *e(elop such lan* into co,,ercial area 4ith port facilities@ pro(i*e*, that the port plan shall be inte-rate* 4ith the Philippine Port Authorit5Ms North )arbor plan for the Manila Ba5 area an* pro(i*e* further, that the final recla,ation an* port plan for sai* reclai,e* area shall be sub,itte* for appro(al b5 the Public Estates Authorit5 an* the Philippine Ports Authorit5, respecti(el5: pro(i*e* finall5, that sub8ect to par+ 0+10 abo(e, actual recla,ation 4or: ,a5 co,,ence upon appro(al of the final recla,ation plan b5 the Public Estates Authorit5+ 3333 >+ A ne4 para-raph to be nu,bere* /+1/ shall be a**e* to Article % of the AR;%A, an* shall rea* as follo4s: /+1/+ n the e(ent this A-ree,ent is re(o:e*, cancelle* or ter,inate* b5 the AUT)OR T" throu-h no fault of the $E%E&OPER, the AUT)OR T" shall co,pensate the $E%E&OPER for the (alue of the co,plete* portions of, an* actual e3pen*itures on the PRO;ECT plus a reasonable rate of return thereon, not e3cee*in- that state* in the Cost Esti,ates of te,s of 7or: pre(iousl5 appro(e* b5 the SM$RP E3ecuti(e Co,,ittee an* the AUT)OR T" an* state* in this A-ree,ent, as of the *ate of such re(ocation, cancellation, or ter,ination, on a sche*ule to be a-ree* upon b5 the parties, pro(i*e* that sai* co,plete* portions of Phase are in accor*ance 4ith the appro(e* G NA& REPORT+

?1

*+ at >E+

After4ar*s, Presi*ent Ra,os issue* Procla,ation No+ C9/ *ate* Au-ust ?., .>>C?. increasin- the propose* area for recla,ation across R#.1 fro, C1 hectares to 2> hectares,?0 to 4it:

NO7, T)EREGORE, , G $E& %+ RAMOS, Presi*ent of the Republic of the Philippines, b5 (irtue of the po4ers (este* in ,e b5 the la4, an* as reco,,en*e* b5 the SM$RP E3ecuti(e Co,,ittee, *o hereb5 authoriFe the increase of the area of foreshore or sub,er-e* lan*s of Manila Ba5 to be reclai,e*, as pre(iousl5 authoriFe* un*er Procla,ation No+ ?> <s+ .>>0= an* Me,oran*u, Or*er No+ C./ <s+ .>>0=, fro, Gour )un*re* Thousan* <C11,111= sAuare ,eters, ,ore or less, to Se(en )un*re* Ninet5 Thousan* <2>1,111= sAuare ,eters, ,ore or less+

On Septe,ber ., .>>C, pursuant to Procla,ation No+ ?>, the $ENR issue* Special Patent No+ ?/>. con(e5in- in fa(or of N)A an area of 0..,>2/ sAuare ,eters co(erin- the S,o:e5 Mountain $u,psite+ n its Septe,ber 2, .>>C letter to the ELECOM, the OP throu-h then E3ecuti(e Secretar5 Teofisto T+ !uin-ona, ;r+, appro(e* the AR;%A as a,en*e* b5 the AAR;%A+ On Septe,ber E, .>>C, the $ENR issue* Special Patent ?/>0 pursuant to Procla,ation No+ ?>, con(e5in- in fa(or of N)A a C1.,CE/# sAuare ,eter area+ On Septe,ber 09, .>>C, the N)A, RB , )o,e nsurance an* !uarant5 Corporation <) !C=, no4 :no4n as the )o,e !uarant5 Corporation, an* the Philippine National Ban: <PNB= ?? e3ecute* the S,o:e5 Mountain Asset Pool Gor,ation Trust A-ree,ent <Asset Pool A-ree,ent=+?C Thereafter, a !uarant5 Contract 4as entere* into b5 N)A, RB , an* ) !C+

?. ?0 ?? ?C

*+ at /09#/??+ *+ at C?/+ The PNB 4as later replace* b5 the Planters $e(elop,ent Ban:+ Rollo, p+ .1/+

On ;une 0?, .>>C, the &e-islature passe* the Clean Air Act+ ?/ The Act ,a*e the establish,ent of an incinerator ille-al an* effecti(el5 barre* the i,ple,entation of the planne* incinerator pro8ect un*er Phase + Thus, the off#site *isposal of the -arba-e at the S,o:e5 Mountain beca,e necessar5+?9 The lan* recla,ation 4as co,plete* in Au-ust .>>9+?2 So,eti,e later in .>>9, pursuant li:e4ise to Procla,ation No+ ?>, the $ENR issue* Special Patent No+ ?/>E con(e5in- in fa(or of N)A an a**itional ?>1,111 sAuare ,eter area+ $urin- the actual construction an* i,ple,entation of Phase of the

SM$RP, the nter#A-enc5 Technical Co,,ittee foun* an* reco,,en*e* to the ELECOM on $ece,ber .2, .>>2 that a**itional 4or:s 4ere necessar5 for the co,pletion an* (iabilit5 of the Pro8ect+ The ELECOM appro(e* the reco,,en*ation an* so, N)A instructe* RB to i,ple,ent the chan-e or*ers or necessar5 4or:s+?E Such necessar5 4or:s co,prise* ,ore than 0/N of the ori-inal contract price an* as a result, the Asset Pool incurre* *irect an* in*irect costs+ Base* on C. .0 A of the ,ple,entin- Rules an* Re-ulations of P$ ./>C, a supple,ental a-ree,ent is reAuire* for Hall chan-e or*ers an* e3tra 4or: or*ers, the total a--re-ate cost of 4hich bein- ,ore than t4ent5#fi(e <0/N= of the escalate* ori-inal contract price+I The ELECOM reAueste* an opinion fro, the $epart,ent of ;ustice <$O;= to *eter,ine 4hether a bi**in- 4as reAuire* for the chan-e or*ers an*6or necessar5 4or:s+ The $O;, throu-h $O; Opinion Nos+ ..> an* .// *ate* Au-ust 09, .>>? an* No(e,ber .0, .>>?, opine* that Ha rebi**in-, pursuant to the aforeAuote* pro(isions of the i,ple,entin- rules <referrin?/ ?9 ?2 ?E

*+ at .E+ RA E2C>, HThe Clean Air Act of .>>>+I *+ *+ at 0CC+ *+ at 2C2#2/.+

to P$ ./>C= 4oul* not be necessar5 4here the chan-e or*ers inseparable fro, the ori-inal scope of the pro8ect, in 4hich case, a ne-otiation 4ith the incu,bent contractor ,a5 be allo4e*+I Thus, on Gebruar5 .>, .>>E, the ELECOM issue* a resolution *irectin- N)A to enter into a supple,ental a-ree,ent co(erin- sai* necessar5 4or:s+ On March 01, .>>E, the N)A an* RB entere* into a Supple,ental A-ree,ent co(erin- the afore,entione* necessar5 4or:s an* sub,itte* it to the Presi*ent on March 0C, .>>E for appro(al+ Out-oin- Presi*ent Ra,os *eci*e* to en*orse the consi*eration of the Supple,ental A-ree,ent to inco,in- Presi*ent ;oseph E+ Estra*a+ On ;une ?1, .>>E, Estra*a beca,e the .?th Philippine Presi*ent+ )o4e(er, the appro(al of the Supple,ental A-ree,ent 4as unacte* upon for fi(e ,onths+ As a result, the utilities an* the roa* net4or:s 4ere constructe* to co(er onl5 the 2>#hectare ori-inal enablin- co,ponent -rante* un*er the AR;%A+ The 001#hectare e3tension of the 2>#hectare area 4as no lon-er technicall5 feasible+ Moreo(er, the financial crises an* unreliable real estate situation ,a*e it *ifficult to sell the re,aininreclai,e* lots+ The *e(aluation of the peso an* the increase in interest cost le* to the substantial increase in the cost of recla,ation+ On Au-ust ., .>>E, the N)A -rante* RB Ms reAuest to suspen* 4or: on the SM$RP *ue to Hthe *ela5 in the appro(al of the Supple,ental A-ree,ent, the conseAuent absence of an enablin- co,ponent to co(er the cost of the necessar5 4or:s for the pro8ect, an* the resultin- inabilit5 to replenish the Asset Pool fun*s partiall5 use* for the co,pletion of the necessar5 4or:s+I?>

?>

*+ at E/E+

As of Au-ust ., .>>E 4hen the pro8ect 4as suspen*e*, RB ha* Halrea*5 acco,plishe* a portion of the necessar5 4or:s an* chan-e or*ers 4hich resulte* in JRB K an* the Asset Pool incurrin- a*(ances for *irect an* in*irect cost 4hich a,ount can no lon-er be co(ere* b5 the 2>#hectare enablin- co,ponent un*er the AR;%A+IC1 Repeate* *e,an*s 4ere ,a*e b5 RB in its o4n capacit5 an* on behalf of the asset pool on N)A for pa5,ent for the a*(ances for *irect an* in*irect costs sub8ect to N)A (ali*ation+ n No(e,ber .>>E, Presi*ent Estra*a issue* Me,oran*u, Or*er No+ ?? reconstitutin- the SM$RP ELECOM an* further *irecte* it to re(ie4 the Supple,ental A-ree,ent an* sub,it its reco,,en*ation on the co,pletion of the SM$RP+ The reconstitute* ELECOM con*ucte* a re(ie4 of the pro8ect an* reco,,en*e* the a,en*,ent of the March 01, .>>E Supple,ental A-ree,ent Hto ,a:e it ,ore feasible an* to i*entif5 an* pro(i*e ne4 sources of fun*s for the pro8ect an* pro(i*e for a ne4 enablin- co,ponent to co(er the pa5,ent for the necessar5 4or:s that cannot be co(ere* b5 the 2>#hectare enablin- co,ponent un*er the AR;%A+IC. The ELECOM passe* Resolution Nos+ >>#.9#1. an* >>#.9#10 C0 4hich appro(e* the ,o*ification of the Supple,ental A-ree,ent, to 4it:
a= Appro(al of ./1 hectares a**itional recla,ation in or*er to ,a:e the recla,ation feasible as part of the enablinco,ponent+ The con(e5ance of the ./#hectare N)A %itas propert5 <actuall5 .2 hectares base* on sur(e5s= to the SM$RP Asset Pool+ The inclusion in the total *e(elop,ent cost of other a**itional, necessar5 an* in*ispensable infrastructure 4or:s an* the re(ision of the ori-inal cost state* in the Supple,ental

b= c=

C1 C. C0

*+ at E91+ *+ at E/>+ *+

A-ree,ent *ate* March 01, .>>E fro, PhP 0,>/?,>EC,>C.+C1 to PhP 0,>9>,.?C,1/?+.?+ *= Re(ision in the sharin- a-ree,ent bet4een the parties+

n the March 0?, 0111 OP Me,oran*u,, the ELECOM 4as authoriFe* to procee* an* co,plete the SM$RP sub8ect to certain -ui*elines an* *irecti(es+ After the parties in the case at bar ha* co,plie* 4ith the March 0?, 0111 Me,oran*u,, the N)A No(e,ber >, 0111 Resolution No+ C?0? appro(e* Hthe con(e5ance of the .2#hectare %itas propert5 in fa(or of the e3istin- or a ne4l5 create* Asset Pool of the pro8ect to be *e(elope* into a ,i3e* co,,ercial#in*ustrial area, sub8ect to certain con*itions+I On ;anuar5 01, 011., then Presi*ent Estra*a 4as consi*ere* resi-ne*+ On the sa,e *a5, Presi*ent !loria M+ Arro5o too: her oath as the .Cth Presi*ent of the Philippines+ As of Gebruar5 0E, 011., Hthe esti,ate* total pro8ect cost of the SM$RP has reache* PE+9/ billion co,prisin- of PC+2E billion in *irect cost an* P?+E2 billion in in*irect cost,IC? sub8ect to (ali*ation b5 the N)A+ On Au-ust 0E, 011., N)A issue* Resolution No+ CC?9 to pa5 for Hthe (arious necessar5 4or:s6chan-e or*ers to SM$RP, to effect the correspon*in- enablin- co,ponent consistin- of the con(e5ance of the N)AMs %itas Propert5 an* an a**itional ./1#hectare recla,ation areaI an* to authoriFe the release b5 N)A of PhP CE1 ,illion Has a*(ance to the pro8ect to ,a:e the Per,anent )ousin- habitable, sub8ect to rei,burse,ent fro, the procee*s of the e3pan*e* enablin- co,ponent+ICC On No(e,ber .>, 011., the A,en*e* Supple,ental A-ree,ent <ASA= 4as si-ne* b5 the parties, an* on Gebruar5 0E, 0110, the )ousin- an*
C? CC

*+ at E91+ *+

Urban $e(elop,ent Coor*inatin- Council <)U$CC= sub,itte* the a-ree,ent to the OP for appro(al+ n the ;ul5 01, 0110 Cabinet Meetin-, )U$CC 4as *irecte* Hto sub,it the 4or:s co(ere* b5 the PhP CE1 ,illion Ja*(ance to the Pro8ectK an* the ASA to public bi**in-+IC/ On Au-ust 0E, 0110, the )U$CC infor,e* RB of the *ecision of the Cabinet+ n its Septe,ber 0, 0110 letter to the )U$CC Chair,an, RB la,ente* the *ecision of the -o(ern,ent Hto bi* out the re,ainin- 4or:s un*er the ASA thereb5 unilaterall5 ter,inatin- the Pro8ect 4ith RB an* all the a-ree,ents relate* thereto+I RB *e,an*e* the pa5,ent of 8ust co,pensation Hfor all acco,plish,ents an* costs incurre* in *e(elopin- the SM$RP plus a reasonable rate of return thereon pursuant to Section /+1/ of the AR;%A an* Section 9+0 of the ASA+IC9 ConseAuentl5, the parties ne-otiate* the ter,s of the ter,ination of the ;%A an* other subseAuent a-ree,ents+ On Au-ust 02, 011?, the N)A an* RB e3ecute* a Me,oran*u, of A-ree,ent <MOA= 4hereb5 both parties a-ree* to ter,inate the ;%A an* other subseAuent a-ree,ents, thus:

.+

TERM NAT ON .+. n co,pliance 4ith the Cabinet *irecti(e *ate* ?1 ;ul5 0110 to sub,it the 4or:s co(ere* b5 the PCE1 Million an* the ASA to public bi**in-, the follo4ina-ree,ents e3ecute* b5 an* bet4een the N)A an* the $E%E&OPER are hereb5 ter,inate*, to 4it: a+ b+ c+ *+ ;oint %enture A-ree,ent <;%A= *ate* .> March .>>? A,en*e* an* Restate* ;oint %enture A-ree,ent <AR;%A= *ate* 0. Gebruar5 .>>C A,en*,ent an* Restate* ;oint %enture A-ree,ent *ate* .. Au-ust .>>C Supple,ental A-ree,ent *ate* 0C March .>>E

C/ C9

*+ at E9.+ *+

e+ 3333 /+

A,en*e* Supple,ental A-ree,ent <ASA= *ate* .> No(e,ber 011.+

SETT&EMENT OG C&A MS /+. Sub8ect to the (ali*ation of the $E%E&OPERMs clai,s, the N)A hereb5 a-rees to initiall5 co,pensate the $e(eloper for the abo(e,entione* costs as follo4s: a+ $irect pa5,ent to $E%E&OPER of the a,ounts herein liste* in the follo4in- ,anner: a+. P0/1 Million in cash fro, the escro4 account in accor*ance 4ith Section 0 here4ith@ Con(e5ance of a ? hectare portion of the %itas n*ustrial area i,,e*iatel5 after 8oint *eter,ination of the appraise* (alue of the sai* propert5 in accor*ance 4ith the proce*ure herein set forth in the last para-raph of Section /+?+ Gor purposes of all pa5,ents to be ,a*e throu-h con(e5ance of real properties, the parties shall secure fro, the N)A Boar* of $irectors all *ocu,ents necessar5 an* sufficient to effect the transfer of title o(er the properties to be con(e5e* to RB , 4hich *ocu,ents shall be issue* 4ithin a reasonable perio*+

a+0

/+0

An5 unpai* balance of the $E%E&OPERS clai,s *eter,ine* after the (ali*ation process referre* to in Section C hereof, ,a5 be pai* in cash, bon*s or throu-h the con(e5ance of properties or an5 co,bination thereof+ The ,anner, ter,s an* con*itions of pa5,ent of the balance shall be specifie* an* a-ree* upon later 4ithin a perio* of three ,onths fro, the ti,e a substantial a,ount representin- the unpai* balance has been (ali*ate* pursuant hereto inclu*in-, but not li,ite* to the pro-ra,,in- of Auarterl5 cash pa5,ents to be source* b5 the N)A fro, its bu*-et for *ebt ser(icin-, fro, its inco,e or fro, an5 other sources+ n an5 case the unpai* balance is a-ree* to be pai*, either partiall5 or totall5 throu-h con(e5ance of properties, the parties shall a-ree on 4hich properties shall be sub8ect to con(e5ance+ The N)A an* $E%E&OPER hereb5 a-ree to *eter,ine the (aluation of the properties to be con(e5e* b5 -ettin- the a(era-e of the appraisals to be ,a*e b5 t4o <0= ,utuall5 acceptable in*epen*ent appraisers+

/+?

Mean4hile, respon*ent )arbour Centre Port Ter,inal, nc+ <)CPT = entere* into an a-ree,ent 4ith the asset pool for the *e(elop,ent an*

operations of a port in the S,o:e5 Mountain Area 4hich is a ,a8or co,ponent of SM$RP to pro(i*e a source of li(elihoo* an* e,plo5,ent for S,o:e5 Mountain resi*ents an* spur econo,ic -ro4th+ A Subscription A-ree,ent 4as e3ecute* bet4een the Asset Pool an* )CPT 4hereb5 the asset pool subscribe* to 912 ,illion co,,on shares an* .,.C? ,illion preferre* shares of )CPT + The )CPT preferre* shares ha* a pre,iu, an* penalt5 interest of 2+/N per annu, an* a ,an*ator5 re*e,ption feature+ The asset pool pai* the subscription b5 con(e5in- to )CPT a .1#hectare lan* 4hich it acAuire* fro, the N)A bein- a portion of the reclai,e* lan* of the SM$RP+ Correspon*in- certificates of titles 4ere issue* to )CPT , na,el5: TCT Nos+ 0/.?//, 0/.?/9, 0/.?/2, an* 0/.?/E+ $ue to )CPT Ms failure to obtain a license to han*le forei-n containeriFe* car-o fro, PPA, it suffere* a net inco,e loss of PhP .?0,90.,/CE in 0110 an* a net loss of PhP ./,/C1,19? in 011?+ The Pro8ect !o(ernin- Boar* of the Asset Pool later con(e5e* b5 4a5 of dacion en pago a nu,ber of )CPT shares to RB in lieu of cash pa5,ent for the latterMs 4or: in SM$RP+ On Au-ust /, 011C, for,er Solicitor !eneral Grancisco + Cha(eF, file* the instant petition 4hich i,plea*e* as respon*ents the N)A, RB , R# )ol*in-s, nc+ <R) =, )CPT , an* Mr+ Re-his Ro,ero constitutional issues+ The N)A reporte* that thirt5#four <?C= te,porar5 housin- structures an* t4ent5#one <0.= per,anent housin- structures ha* been turne* o(er b5 respon*ent RB + t clai,e* that 0,/.1 beneficiar5#fa,ilies belon-in- to the poorest of the poor ha* been transferre* to their per,anent ho,es an* benefite* fro, the Pro8ect+ , raisin-

T&' I**,'*

The -roun*s presente* in the instant petition are:

NE T)ER RESPON$ENT N)A NOR RESPON$ENT R# BU &$ERS MA" %A& $&" REC&A M GORES)ORE AN$ SUBMER!E$ &AN$ BECAUSE: .+ RESPON$ENT N)A AN$ R# BU &$ERS 7ERE NE%ER !RANTE$ AN" PO7ER AN$ AUT)OR T" TO REC&A M &AN$S OG T)E PUB& C $OMA N AS T) S PO7ER S %ESTE$ ELC&US %E&" 7 T) T)E PEA+ E%EN ASSUM N! T)AT RESPON$ENTS N)A AN$ R# BU &$ERS 7ERE ! %EN T)E PO7ER AN$ AUT)OR T" TO REC&A M GORES)ORE AN$ SUBMER!E$ &AN$, T)E" 7ERE NE%ER ! %EN T)E AUT)OR T" B" T)E $ENR TO $O SO+

0+

RESPON$ENT R# BU &$ERS CANNOT ACQU RE T)E REC&A ME$ GORES)ORE AN$ SUBMER!E$ &AN$ AREAS BECAUSE: .+ T)E REC&A ME$ GORES)ORE AN$ SUBMER!E$ PARCE&S OG &AN$ ARE NA& ENAB&E PUB& C &AN$S 7) C) ARE BE"ON$ T)E COMMERCE OG MAN+ ASSUM N! AR!UEN$O T)AT T)E SUB;ECT REC&A ME$ GORES)ORE AN$ SUBMER!E$ PARCE&S OG &AN$ 7ERE A&REA$" $EC&ARE$ A& ENAB&E &AN$S OG T)E PUB& C $OMA N, RESPON$ENT R# BU &$ERS ST && COU&$ NOT ACQU RE T)E SAME BECAUSE T)ERE 7AS NE%ER AN" $EC&ARAT ON T)AT T)E SA $ &AN$S 7ERE NO &ON!ER NEE$E$ GOR PUB& C USE+ E%EN ASSUM N! T)AT T)E SUB;ECT REC&A ME$ &AN$S ARE A& ENAB&E AN$ NO &ON!ER NEE$E$ GOR PUB& C USE, RESPON$ENT R# BU &$ERS ST && CANNOT ACQU RE T)E SAME BECAUSE T)ERE 7AS NE%ER AN" &A7 AUT)OR ' N! T)E SA&E T)EREOG+ T)ERE 7AS NE%ER AN" PUB& C B $$ N! A7AR$ N! O7NERS) P OG T)E SUB;ECT &AN$ TO RESPON$ENT R# BU &$ERS+ ASSUM N! T)AT A&& T)E REQU REMENTS GOR A %A& $ TRANSGER OG A& ENAB&E PUB& C )A$ BEEN PERGORME$, RESPON$ENT R# BU &$ERS, BE N! PR %ATE CORPORAT ON S NONET)E&ESS ELPRESS&"PRO) B TE$ B" T)E P) & PP NE CONST TUT ON TO ACQU RE &AN$S OG T)E PUB& C $OMA N+

0+

?+

C+

/+

RESPON$ENT )ARBOUR, BE N! A PR %ATE CORPORAT ON 7)OSE MA;OR T" STOCQS ARE O7NE$ AN$ CONTRO&&E$ B" RESPON$ENT ROMEROMS CORPORAT ONS B R# BU &$ERS AN$ R# )O&$ N!S B S $ SQUA& G E$ GROM BE N! A TRANSGEREE OG PUB& C &AN$+ % RESPON$ENTS MUST BE COMPE&&E$ TO $ SC&OSE A&& NGORMAT ON RE&ATE$ TO T)E SMOQE" MOUNTA N $E%E&OPMENT AN$ REC&AMAT ON PRO;ECT+

T&' Co,+)>* R,3/"Before 4e *el(e into the substanti(e issues raise* in this petition, 4e 4ill first *eal 4ith se(eral proce*ural ,atters raise* b5 respon*ents+ ?&')&'+ .')/)/o"'+ &!* )&' +'7,/*/)' locus standi )o 4/3' )&/* (!*' Respon*ents ar-ue that petitioner Cha(eF has no le-al stan*in- to file the petition+ Onl5 a person 4ho stan*s to be benefite* or in8ure* b5 the 8u*-,ent in the suit or entitle* to the a(ails of the suit can file a co,plaint or petition+C2 Respon*ents clai, that petitioner is not a proper part5#in#interest as he 4as unable to sho4 that Hhe has sustaine* or is in i,,e*iate or i,,inent *an-er of sustainin- so,e *irect an* personal in8ur5 as a result of the e3ecution an* enforce,ent of the assaile* contracts or a-ree,ents+I CE Moreo(er, the5 assert that not all -o(ern,ent contracts can 8ustif5 a ta3pa5erMs suit especiall5 4hen no public fun*s 4ere utiliFe* in contra(ention of the Constitution or a la4+ 7e e3plicate* in Chavez v. PCGGC> that in cases 4here issues of transcen*ental public i,portance are presente*, there is no necessit5 to sho4 that petitioner has e3perience* or is in actual *an-er of sufferin- *irect an*
C2 CE

.>>2 RU&ES OG C % & PROCE$URE, Rule ?, Sec+ 0+ Bayan (Bagong Alyansang Makabayan) v. Za o!a , !+R+ Nos+ .?E/21, .?E/20, .?E/E2, .?E9E1 O .?E9>E, October .1, 0111, ?C0 SCRA CC>, C2E+ C> !+R+ No+ .?12.9, $ece,ber >, .>>E, 0>> SCRA 2CC+

personal in8ur5 as the reAuisite in8ur5 is assu,e*+ 7e fin* our rulin- in Chavez v. P"A/1 as conclusi(e authorit5 on locus s#andi in the case at bar since the issues raise* in this petition are a(erre* to be in breach of the fair *iffusion of the countr5Ms natural resources an* the constitutional ri-ht of a citiFen to infor,ation 4hich ha(e been *eclare* to be ,atters of transcen*ental public i,portance+ Moreo(er, the plea*in-s especiall5 those of respon*ents rea*il5 re(eal that public fun*s ha(e been in*irectl5 utiliFe* in the Pro8ect b5 ,eans of S,o:e5 Mountain Pro8ect Participation Certificates <SMPPCs= bou-ht b5 so,e -o(ern,ent a-encies+ )ence, petitioner, as a ta3pa5er, is a proper part5 to the instant petition before the court+ ?&')&'+ .')/)/o"'+>* #/+'() +'(o,+*' )o )&/* Co,+) 8!* .+o.'+ Respon*ents are one in assertin- that petitioner circu,(ents the principle of hierarch5 of courts in his petition+ ;u*icial hierarch5 4as ,a*e clear in the case of People v. Cua!es a, thus:
There is after all a hierarch5 of courts+ That hierarch5 is *eter,inati(e of the (enue of appeals, an* shoul* also ser(e as a -eneral *eter,inant of the appropriate foru, for petitions for the e3traor*inar5 4rits+ A beco,inre-ar* for that 8u*icial hierarch5 ,ost certainl5 in*icates that petitions for the issuance of e3traor*inar5 4rits a-ainst first le(el <HinferiorI= courts shoul* be file* 4ith the Re-ional Trial Court, an* those a-ainst the latter, 4ith the Court of Appeals+ A *irect in(ocation of the Supre,e CourtMs ori-inal 8uris*iction to issue these 4rits shoul* be allo4e* onl5 4hen there are special an* i,portant reasons therefor, clearl5 an* specificall5 set out in the petition+ This is establishe* polic5+ t is a polic5 that is necessar5 to pre(ent inor*inate *e,an*s upon the CourtMs ti,e an* attention 4hich are better *e(ote* to those ,atters 4ithin its e3clusi(e 8uris*iction, an* to pre(ent further o(er#cro4*in- of the CourtMs *oc:et+/. 3 3 3

The OS! clai,s that the 8uris*iction o(er petitions for prohibition an* ,an*a,us is concurrent 4ith other lo4er courts li:e the Re-ional Trial Courts an* the Court of Appeals+ Respon*ent N)A ar-ues that the instant petition is ,isfile* because it *oes not intro*uce special an* i,portant reasons or e3ceptional an* co,pellin- circu,stances to 4arrant *irect
/1 /.

!+R+ No+ .??0/1, ;ul5 >, 0110, ?EC SCRA ./0+ !+R+ No+ 922E2, April .E, .>E>, .20 SCRA C./, C0C+

recourse to this Court an* that the lo4er courts are ,ore eAuippe* for factual issues since this Court is not a trier of facts+ Respon*ents RB an* R) Auestion the filin- of the petition as this Court shoul* not be un*ul5 bur*ene* 4ith Hrepetitions, in(ocation of 8uris*iction o(er constitutional Auestions it ha* pre(iousl5 resol(e* an* settle*+I n the li-ht of e3istin- 8urispru*ence, 4e fin* paucit5 of ,erit in respon*entsM postulation+ 7hile *irect recourse to this Court is -enerall5 fro4ne* upon an* *iscoura-e*, 4e ha(e ho4e(er rule* in $an#iago v. %as&uez that such resort to us ,a5 be allo4e* in certain situations, 4herein this Court rule* that petitions for certiorari, prohibition, or ,an*a,us, thou-h co-niFable b5 other courts, ,a5 *irectl5 be file* 4ith us if Hthe re*ress *esire* cannot be obtaine* in the appropriate courts or 4here e3ceptional co,pellincircu,stances 8ustif5 a(ail,ent of a re,e*5 4ithin an* callin- for the e3ercise of Jthis CourtMsK pri,ar5 8uris*iction+I/0

The instant petition challen-es the constitutionalit5 an* le-alit5 of the SM$RP in(ol(in- se(eral hectares of -o(ern,ent lan* an* hun*re*s of ,illions of fun*s of se(eral -o(ern,ent a-encies+ Moreo(er, serious constitutional challen-es are ,a*e on the *ifferent aspects of the Pro8ect 4hich alle-e*l5 affect the ri-ht of Gilipinos to the *istribution of natural resources in the countr5 an* the ri-ht to infor,ation of a citiFenD,atters 4hich ha(e been consi*ere* to be of e3traor*inar5 si-nificance an* -ra(e conseAuence to the public in -eneral+ These concerns in the instant action co,pel us to turn a blin* e5e to the 8u*icial structure ,eant to pro(i*e an or*erl5 *ispensation of 8ustice an* consi*er the instant petition as a 8ustifie* *e(iation fro, an establishe* precept+ Co+' 4!(),!3 2!))'+* ,"#/*.,)'#
/0

!+R+ Nos+ >>0E>#>1, ;anuar5 02, .>>?, 0.2 SCRA 9??, 9/0+

Respon*ents ne3t challen-e the pro8ecte* re(ie4 b5 this Court of the alle-e* factual issues intert4ine* in the issues propoun*e* b5 petitioner+ The5 liste* a copious nu,ber of Auestions see,in-l5 factual in nature 4hich 4oul* ,a:e this Court a trier of facts+/? 7e fin* the position of respon*ents bereft of ,erit+ Gor one, 4e alrea*5 -a(e *ue course to the instant petition in our ;anuar5 .E, 011/ Resolution+/C n sai* issuance, the parties 4ere reAuire* to ,a:e clear an* concise state,ents of establishe* facts upon 4hich our *ecision 4ill be base*+ Secon*l5, 4e a-ree 4ith petitioner that there is no necessit5 for us to ,a:e an5 factual fin*in-s since the facts nee*e* to *eci*e the instant petition are 4ell establishe* fro, the a*,issions of the parties in their plea*in-s// an* those *eri(e* fro, the *ocu,ents appen*e* to sai* sub,issions+ n*ee*, the core facts 4hich are the sub8ect ,atter of the nu,erous issues raise* in this petition are un*ispute*+ No4 4e 4ill tac:le the issues that prop up the instant petition+

/?

/C //

.+ Petitioner clai,e* that N)A a4ar*e* the S,o:e5 Mountain pro8ect to R# Buil*ers throu-h contract ne-otiations an* that there 4as no public bi**in- a4ar*in- o4nership of the sub8ect lan* to respon*ent R# Buil*ers, 4hile respon*ents alle-e* that N)A publicl5 bi**e* out the ri-ht to beco,e N)AMs 8oint (enture partner in the prosecution of the SM$RP@ 0+ Petitioner a(erre* that HPEA ha* no participation 4hatsoe(er in the recla,ation of the sub8ect lan*sI 4hile respon*ents state* PEA ha* a na,e therein@ ?+ Petitioner alle-e* that Hneither respon*ent N)A nor respon*ent R# Buil*ers 4as -i(en the authorit5 Jb5 $ENRK to reclai, the sub8ect lan*sI 4hile respon*ents clai,e* such authorit5 4as -rante*@ C+ Mr+ Cha(eF clai,e* Hthat there is no le-islati(e or Presi*ential act classif5in- the sub,er-e* areas aroun* S,o:e5 Mountain as alienable or *isposable lan*s of the public *o,ain open to *ispositionI 4hile respon*ents sai* that Presi*ents AAuino an* Ra,os ,a*e the classification@ /+ 7hether respon*ent R# Buil*ers co,plie* 4ith its obli-ation to Hfull5 financeI the Pro8ect@ 9+ 7hether the Pro8ect has been ter,inate* b5 a-ree,ents of the parties@ 2+ 7hether respon*ents )arbour Centre an* Ro,ero frau*ulentl5 cause* the *ilution of the Asset PoolMs )ol*in-s in )CPT @ E+ 7hether )arbour Centre contracts attache* to the Petition are -enuine+ Rollo, p+ E2.+ Petition, Co,,ents, Repl5, an* Me,oran*a+

Since petitioner has cite* our *ecision in P"A as basis for his postulations in a nu,ber of issues, 4e first resol(e the Auer5Dis P"A applicable to the case at barR A 8u3taposition of the facts in the t4o cases constrains the Court to rule in the ne-ati(e+ The Court fin*s that P"A is not a bin*in- prece*ent to the instant petition because the facts in sai* case are substantiall5 *ifferent fro, the facts an* circu,stances in the case at bar, thus: <.= The recla,ation pro8ect in P"A 4as un*erta:en throu-h a ;%A

entere* into bet4een PEA an* AMAR + The recla,ation pro8ect in the instant N)A case 4as un*erta:en b5 the N)A, a national -o(ern,ent a-enc5 in consultation 4ith PEA an* 4ith the appro(al of t4o Philippine Presi*ents@ <0= n P"A, AMAR an* PEA e3ecute* a ;%A to *e(elop the

Gree*o, slan*s an* reclai, sub,er-e* areas 4ithout public bi**in- on April 0/, .>>/+ n the instant N)A case, the N)A an* RB e3ecute* a ;%A after RB 4as *eclare* the 4innin- bi**er on Au-ust ?., .>>0 as the ;%A partner of the N)A in the SM$RP after co,pliance 4ith the reAuisite public bi**in-+ <?= n P"A, there 4as no la4 or presi*ential procla,ation n this RB case, MO C./ of for,er Presi*ent AAuino an*

classif5in- the lan*s to be reclai,e* as alienable an* *isposal lan*s of public *o,ain+ Procla,ation No+ ?> of then Presi*ent Ra,os, couple* 4ith Special Patents Nos+ ?/>., ?/>0, an* ?/>E, classifie* the reclai,e* lan*s as alienable an* *isposable@ <C= n P"A, the Cha(eF petition 4as file* before the a,en*e* ;%A

4as e3ecute* b5 PEA an* AMAR + n this N)A case, the ;%A an*

subseAuent

a,en*,ents

4ere

alrea*5

substantiall5

i,ple,ente*+

SubseAuentl5, the Pro8ect 4as ter,inate* throu-h a MOA si-ne* on Au-ust 02, 011?+ Al,ost one 5ear later on Au-ust /, 011C, the Cha(eF petition 4as file*@ </= n P"A, AMAR 4as consi*ere* to be in ba* faith as it si-ne*

the a,en*e* ;%A after the Cha(eF petition 4as file* 4ith the Court an* after Senate Co,,ittee Report No+ /91 4as issue* fin*in- that the sub8ect lan*s are inalienable lan*s of public *o,ain+ n the instant petition, RB an* other respon*ents are consi*ere* to ha(e si-ne* the a-ree,ents in -oo* faith as the Pro8ect 4as ter,inate* e(en before the Cha(eF petition 4as file*@ <9= The PEA#AMAR ;%A 4as e3ecute* as a result of *irect

ne-otiation bet4een the parties an* not in accor*ance 4ith the BOT &a4+ The N)A#RB ;%A an* subseAuent a,en*,ents constitute a BOT contract -o(erne* b5 the BOT &a4@ an* <2= n P"A, the lan*s to be reclai,e* or alrea*5 reclai,e* 4ere n the N)A case, the reclai,e*

transferre* to PEA, a -o(ern,ent entit5 tas:e* to *ispose of public lan*s un*er E3ecuti(e Or*er No+ <EO= /0/+/9 lan*s 4ere transferre* to N)A, a -o(ern,ent entit5 NOT tas:e* to *ispose of public lan* an* therefore sai* alienable lan*s 4ere con(erte* to patri,onial lan*s upon their transfer to N)A+/2 Thus the P"A $ecision/E cannot be consi*ere* an authorit5 or prece*ent to the instant case+ The principle of s#a!e decisis/> has no application to the *ifferent factual settin- of the instant case+
H$esi-natin- the Public Estates Authorit5 as the A-enc5 Pri,aril5 Responsible for All Recla,ation Pro8ectsI <.>2>=+ /2 Rollo, p+ 0?/+ /E The ;ul5 >, 0110 $ecision entitle* Chavez v. P"A 4as concurre* in b5 .? ,e,bers of this Court 4ho (ote* to -rant the petition+ )o4e(er, in the Ma5 9, 011? Resolution, the Court 4as *i(i*e* 4hen it (ote* E#/ to affir, the $ecision+ An* in the ,ost recent No(e,ber .., 011? Resolution of this Court, a 2#2 (ote 4as arri(e* at+ Thus, the ;ul5 >, 0110 $ecision is still the (ali* case la4+ /> The *octrine of s#a!e decisis pro(i*es that a conclusion reache* in one case shoul*, for the sa:e of certaint5, be applie* to those 4hich follo4 if the facts are substantiall5 the sa,e e(en thou-h the parties ,a5 be *ifferent+
/9

7e 4ill no4 *4ell on the substanti(e issues raise* b5 petitioner+ After a perusal of the -roun*s raise* in this petition, 4e fin* that ,ost of these issues are ,oore* on our P"A $ecision 4hich, as earlier *iscusse*, has no application to the instant petition+ Gor this reason alone, the petition can alrea*5 be re8ecte*+ Ne(ertheless, on the pre,ise of the applicabilit5 of sai* *ecision to the case at bar, 4e 4ill procee* to resol(e sai* issues+

F/+*) I**,'% ?&')&'+ +'*.o"#'")* NHA !"# RBI &!0' 5''" -+!")'# )&' .o8'+ !"# !,)&o+/)6 )o +'(3!/2 3!"#* o4 )&' .,53/( #o2!/" !* )&/* .o8'+ /* 0'*)'# '9(3,*/0'36 /" PEA !* (3!/2'# 56 .')/)/o"'+

Petitioner conten*s that neither respon*ent N)A nor respon*ent RB ,a5 (ali*l5 reclai, foreshore an* sub,er-e* lan* because the5 4ere not -i(en an5 po4er an* authorit5 to reclai, lan*s of the public *o,ain as this po4er 4as *ele-ate* b5 la4 to PEA+ Assertin- that e3istin- la4s *i* not e,po4er the N)A an* RB to reclai, lan*s of public *o,ain, the Public Estates Authorit5 <PEA=, petitioner clai,s, is Hthe pri,ar5 authorit5 for the recla,ation of all foreshore an* sub,er-e* lan*s of public *o,ain,I an* relies on P"A 4here this Court hel*:

Moreo(er, Section . of E3ecuti(e Or*er No+ /0/ pro(i*es that PEA Hshall be pri,aril5 responsible for inte-ratin-, *irectin-, an* coor*inatin- all recla,ation pro8ects for an* on behalf of the National !o(ern,ent+I The sa,e section also states that HJAKll recla,ation pro8ects shall be appro(e* b5 the Presi*ent upon reco,,en*ation of the PEA, an* shall be un*erta:en b5 the PEA or throu-h a proper contract e3ecute* b5 it 4ith an5 person or entit5@ 3 3 3+I Thus, un*er EO No+ /0/, in relation to P$ No+ ?#A an* P$ No+ .1EC, PEA beca,e the pri,ar5 i,ple,entin- a-enc5 of the National !o(ern,ent to reclai, foreshore an* sub,er-e* lan*s of the public *o,ain+ EO No+ /0/ reco-niFe* PEA as the -o(ern,ent entit5 Hto un*erta:e the recla,ation of lan*s an* ensure their ,a3i,u, utiliFation in pro,otin- public 4elfare an* interests+I Since lar-e portions of these reclai,e* lan*s 4oul* ob(iousl5 be nee*e* for public ser(ice, there ,ust be a for,al *eclaration se-re-atinreclai,e* lan*s no lon-er nee*e* for public ser(ice fro, those still nee*e* for public ser(ice+91
91

Supra note /1, at 00.+

n the S,o:e5 Mountain Pro8ect, petitioner clarifies that the recla,ation 4as not *one b5 PEA or throu-h a contract e3ecute* b5 PEA 4ith another person or entit5 but b5 the N)A throu-h an a-ree,ent 4ith respon*ent RB + Therefore, he conclu*es that the recla,ation is null an* (oi*+ PetitionerMs contention has no ,erit+ EO /0/ rea*s:

Section .+ The Public Estates Authorit5 <PEA= shall be .+/2!+/36 +'*.o"*/53' for inte-ratin-, *irectin-, an* coor*inatin- all recla,ation pro8ects for an* on behalf of the National !o(ern,ent+ All recla,ation pro8ects shall be appro(e* b5 the Presi*ent upon reco,,en*ation of the PEA, an* shall be un*erta:en b5 the PEA or throu-h a proper contract e3ecute* b5 it 4ith an5 person or entit5@ Pro(i*e*, that, +'(3!2!)/o" .+o1'()* o4 !"6 "!)/o"!3 -o0'+"2'") !-'"(6 o+ '")/)6 !,)&o+/='# ,"#'+ /)* (&!+)'+ *&!33 5' ,"#'+)!@'" /" (o"*,3)!)/o" 8/)& )&' PEA ,.o" !..+o0!3 o4 )&' P+'*/#'")+ <E,phasis supplie*+=

The aforeAuote* pro(ision points to three <?= reAuisites for a le-al an* (ali* recla,ation pro8ect, (iF: <.= <0= <?= appro(al b5 the Presi*ent@ fa(orable reco,,en*ation of PEA@ an* un*erta:en b5 an5 of the follo4in-: a+ b+ c+ consultation b5 PEA b5 an5 person or entit5 pursuant to a contract it e3ecute* 4ith PEA b5 the National !o(ern,ent a-enc5 or entit5 authoriFe* un*er its charter to reclai, lan*s sub8ect to 4ith PEA

7ithout *oubt, PEA un*er EO /0/ 4as *esi-nate* as the a-enc5 pri,aril5 responsible for inte-ratin-, *irectin-, an* coor*inatin- all recla,ation pro8ects+ Pri,aril5 ,eans H,ainl5, principall5, ,ostl5, -enerall5+I Thus, not all recla,ation pro8ects fall un*er PEAMs authorit5 of super(ision, inte-ration, an* coor*ination+ The (er5 charter of PEA, P$ .1EC,9. *oes not ,ention that PEA has the e3clusi(e an* sole po4er an* authorit5 to reclai, lan*s of public *o,ain+ EO /0/ e(en re(eals the e3ceptionDrecla,ation pro8ects b5 a national -o(ern,ent a-enc5 or entit5 authoriFe* b5 its charter to reclai, lan*+ One e3a,ple is EO C1/ 4hich authoriFe* the Philippine Ports Authorit5 <PPA= to reclai, an* *e(elop sub,er-e* areas for port relate* purposes+ Un*er its charter, P$ E/2, PPA has the po4er Hto reclai,, e3ca(ate, enclose or raise an5 of the lan*sI (este* in it+

Thus, 4hile PEA un*er P$ .1EC has the po4er to reclai, lan* an* un*er EO /0/ is pri,aril5 responsible for inte-ratin-, *irectin- an* coor*inatin- recla,ation pro8ects, such authorit5 is NOT e3clusi(e an* such po4er to reclai, ,a5 be -rante* or *ele-ate* to another -o(ern,ent a-enc5 or entit5 or ,a5 e(en be un*erta:en b5 the National !o(ern,ent itself, PEA bein- onl5 an a-enc5 an* a part of the National !o(ern,ent+ &et us appl5 the le-al para,eters of Sec+ ., EO /0/ to the recla,ation phase of SM$RP+ After a scrutin5 of the facts culle* fro, the recor*s, 4e fin* that the pro8ect ,et all the three <?= reAuire,ents, thus: .+ There 4as a,ple appro(al b5 the Presi*ent of the Philippines@

as a ,atter of fact, t4o Philippine Presi*ents appro(e* the sa,e, na,el5: Presi*ents AAuino an* Ra,os+ Presi*ent AAuino sanctione* the recla,ation of both the SM$RP housin- an* co,,ercial#in*ustrial sites throu-h MO C./ <s+ .>>0= 4hich appro(e* the SM$RP un*er Sec+ . an* *irecte* N)A H3 3 3 to i,ple,ent the S,o:e5 Mountain $e(elop,ent Plan an*
HCreatin- the Public Estates Authorit5, $efinin- its Po4er an* Gunctions, Pro(i*in- Gun*s Therefor an* for Other PurposesI <.>22=+
9.

R'(3!2!)/o" o4 )&' A+'! !(+o** R-1A throu-h a pri(ate sector 8oint (enture sche,e at the least cost to -o(ern,entI un*er Section ?+ Gor his part, then Presi*ent Ra,os issue* Procla,ation No+ ?> <s+ .>>0= 4hich e3pressl5 reser(e* the S,o:e5 Mountain Area an* )&' R'(3!2!)/o" A+'! 4o+ ! &o,*/".+o1'() !"# +'3!)'# (o22'+(/!3;/"#,*)+/!3 #'0'3o.2'")+ Moreo(er, Presi*ent Ra,os issue* Procla,ation No+ C9/ <s+ .>>C= 4hich authoriFe* )&' /"(+'!*' o4 )&' R'(3!2!)/o" A+'! 4+o2 4A &'()!+'* o4 4o+'*&o+' !"# *,52'+-'# 3!"# o4 )&' !"/3! B!6 )o 7B &'()!+'* + t spea:s of the recla,ation of C11,111 sAuare ,eters, ,ore or less, of the foreshore an* sub,er-e* lan*s of Manila Ba5 a*8oinin- R#.1 !* !" '"!53/"- (o2.o"'") o4 )&' S DRP+ As a result of Procla,ations Nos+ ?> an* C9/, Special Patent No+ ?/>. co(erin- 0..,>2/ sAuare ,eters of S,o:e5 Mountain, Special Patent No+ ?/>0 co(erin- C1.,CE/ sAuare ,eters of reclai,e* lan*, an* Special Patent No+ ?/>E co(erin- another ?>1,111 sAuare ,eters of reclai,e* lan* 4ere issue* b5 the $ENR+ Thus, the first reAuire,ent of presi*ential i,pri,atur on the SM$RP has been satisfie*+ 0+ The reAuisite fa(orable en*orse,ent of the recla,ation phase

4as i,plie*l5 -rante* b5 PEA+ Presi*ent AAuino sa4 to it that there 4as coor*ination of the pro8ect 4ith PEA b5 *esi-natin- its -eneral ,ana-er as ,e,ber of the ELECOM tas:e* to super(ise the pro8ect i,ple,entation+ The assi-n,ent 4as ,a*e in Sec+ 0 of MO C./ 4hich pro(i*es:
Section 0+ An E3ecuti(e Co,,ittee is hereb5 create* to o(ersee the i,ple,entation of the Plan, chaire* b5 the NCR#COR$, 4ith the hea*s of the follo4in- a-encies as ,e,bers: The National )ousinAuthorit5, the Cit5 of Manila, the $epart,ent of Public 7or:s an*

)i-h4a5s, )&' P,53/( E*)!)'* A,)&o+/)6, the Philippine Ports Authorit5, the $epart,ent of En(iron,ent an* Natural Resources an* the $e(elop,ent Ban: of the Philippines+ <E,phasis supplie*+=

The fa(orable reco,,en*ation b5 PEA of the ;%A an* subseAuent a,en*,ents 4ere incorporate* as part of the reco,,en*ations of the ELECOM create* un*er MO C./+ 7hile there 4as no specific reco,,en*ation on the SM$RP e,anatin- solel5 fro, PEA, 4e fin* that the approbation of the Pro8ect an* the lan* recla,ation as an essential co,ponent b5 the ELECOM of 4hich PEA is a ,e,ber, an* its sub,ission of the SM$RP an* the a-ree,ents on the Pro8ect to the Presi*ent for appro(al a,pl5 ,et the secon* reAuire,ent of EO /0/+ ?+ The thir* ele,ent 4as also presentDthe recla,ation 4as

un*erta:en either b5 PEA or an5 person or entit5 un*er contract 4ith PEA or b5 the National !o(ern,ent a-enc5 or entit5 authoriFe* un*er its charter to reclai, lan*s sub8ect to consultation 4ith PEA+ t cannot be *ispute* that the recla,ation phase 4as not *one b5 PEA or an5 person or entit5 un*er contract 4ith PEA+ )o4e(er, the recla,ation 4as i,ple,ente* b5 the N)A, a national -o(ern,ent a-enc5 4hose authorit5 to reclai, lan*s un*er consultation 4ith PEA is *eri(e* fro, its charterDP$ 202 an* other pertinent la4sDRA 202>90 an* RA 9>/2 as a,en*e* b5 RA 22.E+ 7hile the authorit5 of N)A to reclai, lan*s is challen-e* b5 petitioner, 4e fin* that the N)A ha* ,ore than enou-h authorit5 to *o so un*er e3istin- la4s+ 7hile P$ 2/2, the charter of N)A, *oes not e3plicitl5 ,ention Hrecla,ationI in an5 of the liste* po4ers of the a-enc5, 4e rule that the N)A has an i,plie* po4er to reclai, lan* as this is (ital or inci*ental to effecti(el5, lo-icall5, an* successfull5 i,ple,ent an urban lan* refor, an* housin- pro-ra, enunciate* in Sec+ > of Article L Constitution+ of the .>E2

HAn Act to Pro(i*e for a Co,prehensi(e an* Continuin- Urban $e(elop,ent an* )ousinPro-ra,, Establish the Mechanis, for its ,ple,entation, an* for Other PurposesI <.>>0=+

90

Basic in a*,inistrati(e la4 is the *octrine that a -o(ern,ent a-enc5 or office has e3press an* i,plie* po4ers base* on its charter an* other pertinent statutes+ E3press po4ers are those po4ers -rante*, allocate*, an* *ele-ate* to a -o(ern,ent a-enc5 or office b5 e3press pro(isions of la4+ On the other han*, i,plie* po4ers are those that can be inferre* or are i,plicit in the 4or*in-s of the la49? or conferre* b5 necessar5 or fair i,plication in the enablin- act+9C n Anga!a v. "lec#o!al Co ission, the Court clarifie* an* stresse* that 4hen a -eneral -rant of po4er is conferre* or *ut5 en8oine*, e(er5 particular po4er necessar5 for the e3ercise of the one or the perfor,ance of the other is also conferre* b5 necessar5 i,plication+9/ t 4as also e3plicate* that 4hen the statute *oes not specif5 the particular ,etho* to be follo4e* or use* b5 a -o(ern,ent a-enc5 in the e3ercise of the po4er (este* in it b5 la4, sai* a-enc5 has the authorit5 to a*opt an5 reasonable ,etho* to carr5 out its functions+99 The po4er to reclai, on the part of the N)A is i,plicit fro, P$ 2/2, RA 202>, MO C./, RA 9>/2, an* P$ ?#A,92 (iF: .+ N)AMs po4er to reclai, *eri(e* fro, P$ 2/2 pro(isions: a+ Sec+ ? of P$ 2/2 i,plies that recla,ation ,a5 be resorte* to in

or*er to attain the -oals of N)A:

S'()/o" C. P!og!ess and 'b(ec#ives+ The Authorit5 shall ha(e the follo4in- purposes an* ob8ecti(es: 3333 b= To un*erta:e housin-, #'0'3o.2'"), resettle,ent or other acti(ities as 4oul* enhance the pro(ision of housin- to e(er5 Gilipino@

9?

Radio Co unica#ions o) #he Philippines* +nc. v. $an#iago, Nos+ &#0>0?9 O &#0>0C2, /E SCRA C>?, Au-ust 0., .>2C, /E SCRA C>?, C>2+ 9C Aza!con v. $andiganbayan, !+R+ No+ ..91??, Gebruar5 09, .>>2, 09E SCRA 2C2, 29.+ 9/ 9? Phil+ .?>, .22 <.>?9=+ 99 P!oviden# ,!ee -a! s* +nc. v. Ba#a!io* J!. , !+R+ No+ >00E/, March 0E, .>>C, 0?. SCRA C9?, C9>@ cite* in A-palo, A$M N STRAT %E CO$E .C+ 92 HA,en*in- Section 2 of Presi*ential $ecree No+ ? *ate* Septe,ber 09, .>20, b5 Pro(i*in- for the E3clusi(e Prosecution b5 A*,inistration or b5 Contract of Recla,ation Pro8ectsI <011/=+

c=

To harness an* pro,ote pri(ate participation in housin(entures in ter,s of capital e3pen*itures, 3!"#, e3pertise, financin- an* other facilities for the sustaine* -ro4th of the housin- in*ustr5+ <E,phasis supplie*+=

&an* recla,ation is an inte-ral part of the *e(elop,ent of resources for so,e of the housin- reAuire,ents of the N)A+ Pri(ate participation in housin- pro8ects ,a5 also ta:e the for, of lan* recla,ation+ b+ Sec+ / of P$ 2/2 ser(es as proof that the N)A, as successor of

the Ton*o Goreshore $e(elop,ent Authorit5 <TG$A=, has the po4er to reclai,, thus:
S'()/o" 5. .issolu#ion o) "/is#ing 0ousing Agencies. The PeopleSs )o,esite an* )ousin- Corporation <P))C=, the Presi*ential Assistant on )ousin- Resettle,ent A-enc5 <PA)RA=, )&' To"#o Fo+'*&o+' D'0'3o.2'") A,)&o+/)6 :TFDA<, the Central nstitute for the Traininan* Relocation of Urban SAuatters <C TRUS=, the Presi*ential Co,,ittee for )ousin- an* Urban Resettle,ent <PREC)UR=, Sapan- Pala5 $e(elop,ent Co,,ittee, nter#A-enc5 Tas: Gorce to Un*erta:e the Relocation of Ga,ilies in Barrio Nabacaan, %illanue(a, Misa,is Oriental an* all other e3istin- -o(ern,ent housin- an* resettle,ent a-encies, tas: forces an* a*#hoc co,,ittees, are hereb5 *issol(e*+ T&'/+ .o8'+* !"# 4,"()/o"*, 5!3!"(' o4 !..+o.+/!)/o"*, +'(o+#*, !**')*, +/-&)*, !"# (&o*'* /" !()/o", !+' )+!"*4'++'# )o, 0'*)'# /", !"# !**,2'# 56 )&' A,)&o+/)6+ 3 3 3 <E,phasis supplie*+=

P$ /21 *ate* October ?1, .>2C create* the TG$A, 4hich *efine* its ob8ecti(es, po4ers, an* functions+ Sec+ 0 pro(i*es:

S'()/o" 2. 'b(ec#ives and Pu!poses+ The Authorit5 shall ha(e the follo4in- purposes an* ob8ecti(es: a= To un*erta:e all ,anner of acti(it5, business or *e(elop,ent pro8ects for the establish,ent of har,onious, co,prehensi(e, inte-rate* an* health5 li(in- co,,unit5 in the To"#o Fo+'*&o+'3!"# an* its resettle,ent site@ b= To un*erta:e an* pro,ote the ph5sical an* socio#econo,ic a,elioration of the To"#o Fo+'*&o+' +'*/#'")* in particular an* the nation in -eneral <E,phasis supplie*+=

The po4ers an* functions are containe* in Sec+ ?, to 4it:

a= To *e(elop an* i,ple,ent co,prehensi(e an* inte-rate* urban rene4al pro-ra,s for the To"#o Fo+'*&o+' an* $a-at#*a-atan la-oon !"#;o+ !"6 o)&'+ !##/)/o"!3;!3)'+"!)/0' +'*'))3'2'") */)' an* to for,ulate an* enforce -eneral an* specific policies for its *e(elop,ent 4hich shall ensure reasonable *e-ree of co,pliance 4ith en(iron,ental stan*ar*s+ b= To prescribe -ui*elines an* stan*ar*s for the reser(ation, conser(ation an* ,)/3/=!)/o" o4 .,53/( 3!"#* (o0'+/"- )&' To"#o Fo+'*&o+' 3!"# !"# /)* +'*'))3'2'") */)'*@ c= To construct, acAuire, o4n, lease, operate an* ,aintain infrastructure facilities, housin- co,ple3, sites an* ser(ices@ *= To *eter,ine, re-ulate an* super(ise the establish,ent an* operation of housin-, sites, ser(ices an* co,,ercial an* in*ustrial co,ple3es an* an5 other enterprises to be constructe* or establishe* 4ithin the To"#o Fo+'*&o+' an* its resettle,ent sites@ e= To un*erta:e an* *e(elop, b5 itself or throu-h 8oint (entures 4ith other public or pri(ate entities, all or an5 of the *ifferent phases of *e(elop,ent of the To"#o Fo+'*&o+' lan* an* its resettle,ent sites@ f= To acAuire an* o4n propert5, propert5#ri-hts an* interests, an* encu,ber or other4ise *ispose of the sa,e as it ,a5 *ee, appropriate <E,phasis supplie*+=

Gro, the fore-oin- pro(isions, it is rea*il5 apparent that the TG$A has the e3plicit po4er to *e(elop public lan*s co(erin- the Ton*o foreshore lan* an* an5 other a**itional an* alternati(e resettle,ent sites un*er letter b, Sec+ ? of P$ /21+ Since the a**itional an*6or alternati(e sites a*8acent to Ton*o foreshore lan* co(er foreshore an* sub,er-e* areas, the recla,ation of sai* areas is necessar5 in or*er to con(ert the, into a co,prehensi(e an* inte-rate* resettle,ent housin- pro8ect for the slu, *4ellers an* sAuatters of Ton*o+ Since the po4ers of TG$A 4ere assu,e* b5 the N)A, then the N)A has the po4er to reclai, lan*s in the Ton*o foreshore area 4hich co(ers the 2>#hectare lan* sub8ect of Procla,ations Nos+ ?> an* C9/ an* Special Patents Nos+ ?/>0 an* ?/>E+ c+ Sec+ 9 of P$ 2/2 *elineates the functions an* po4ers of the

N)A 4hich e,brace the authorit5 to reclai, lan*, thus:

Sec+ 9+ Po1e!s and )unc#ions o) #he Au#ho!i#y+DThe Authorit5 shall ha(e the follo4in- po4ers an* functions to be e3ercise* b5 the

Boar* in accor*ance 4ith its establishe* national hu,an settle,ents plan prepare* b5 the )u,an Settle,ents Co,,ission: <a= $e(elop an* i,ple,ent the (o2.+'&'"*/0' /")'-+!)'# &o,*/"- .+o-+!2 pro(i*e* for in Section hereof@ 3333 <c= Prescribe -ui*elines an* stan*ar*s for the reser(ation, conser(ation an* ,)/3/=!)/o" o4 .,53/( 3!"#* i*entifie* for housin- an* resettle,ent@ 3333 <e= $e(elop an* un*erta:e housin- *e(elop,ent an*6or resettle,ent pro8ects )&+o,-& 1o/") 0'"),+'* or other arran-e,ents 4ith public an* pri(ate entities@ 3333 <:= Enter into contracts 4hene(er necessar5 un*er such ter,s an* con*itions as it ,a5 *ee, proper an* reasonable@ <l= A(7,/+' .+o.'+)6 +/-&)* !"# /")'+'*)* an* encu,ber or other4ise *ispose the sa,e as it ,a5 *ee, appropriate@ 3333 <s= P'+4o+2 *,(& o)&'+ !()* "o) /"(o"*/*)'") 8/)& )&/* D'(+'', !* 2!6 5' "'('**!+6 )o '44'() )&' .o3/(/'* !"# o51'()/0'* &'+'/" #'(3!+'#+ <E,phasis supplie*+= !"#

The N)AMs authorit5 to reclai, lan* can be inferre* fro, the aforeAuote* pro(isions+ t can ,a:e use of public lan*s un*er letter <c= of Sec+ 9 4hich inclu*es reclai,e* lan* as site for its co,prehensi(e an* inte-rate* housin- pro8ects un*er letter <a= 4hich can be un*erta:en throu-h 8oint (entures 4ith pri(ate entities un*er letter <e=+ Ta:en to-ether 4ith letter <s= 4hich authoriFes N)A to perfor, such other acti(ities Hnecessar5 to effect the policies an* ob8ecti(esI of P$ 2/2, it is safe to conclu*e that the N)AMs po4er to reclai, lan*s is a po4er that is i,plie* fro, the e3ercise of its e3plicit po4ers un*er Sec+ 9 in or*er to effecti(el5 acco,plish its policies an* ob8ecti(es un*er Sec+ ? of its charter+ Thus, the recla,ation of lan* is an in*ispensable co,ponent for the *e(elop,ent an* construction of the SM$RP housin- facilities+ 0+ N)AMs i,plie* po4er to reclai, lan* is enhance* b5 RA 202>+

P$ 2/2 i*entifies N)AMs ,an*ate to HJ*Ke(elop an* un*erta:e housin- *e(elop,ent an*6or resettle,ent pro8ects throu-h 8oint (entures or other arran-e,ents 4ith public an* pri(ate entities+I The po4er of the N)A to un*erta:e recla,ation of lan* can be inferre* fro, Secs+ .0 an* 0> of RA 202>, 4hich pro(i*e:

Section .0+ .isposi#ion o) 2ands )o! $ocialized 0ousing.3The National )ousin- Authorit5, 8/)& +'*.'() )o 3!"#* 5'3o"-/"- )o )&' N!)/o"!3 Go0'+"2'"), an* the local -o(ern,ent units 4ith respect to other lan*s 4ithin their respecti(e localities, shall coor*inate 4ith each other to for,ulate an* ,a:e a(ailable 0!+/o,* !3)'+"!)/0' *(&'2'* 4o+ )&' #/*.o*/)/o" o4 3!"#* )o )&' 5'"'4/(/!+/'* o4 )&' P+o-+!2 + These sche,es shall not be li,ite* to those in(ol(in- transfer of o4nership in fee si,ple but shall inclu*e lease, 4ith option to purchase, usufruct or such other (ariations as the local -o(ern,ent units or the National )ousin- Authorit5 ,a5 *ee, ,ost e3pe*ient in carr5in- out the purposes of this Act+ 3333 Section 0>+ Rese##le en#.37ith t4o <0= 5ears fro, the effecti(it5 of this Act, the local -o(ern,ent units, in coor*ination 4ith the National )ousin- Authorit5, shall i,ple,ent the +'3o(!)/o" !"# +'*'))3'2'") of persons li(in- in *an-er areas such as esteros, railroa* trac:s, -!+5!-' #,2.*, ri(erban:s, shorelines, 4ater4a5s, an* in other public places as si*e4al:s, roa*s, par:s, an* pla5-roun*s+ The local -o(ern,ent unit, in coor*ination 4ith the National )ousin- Authorit5, shall pro(i*e relocation or resettle,ent sites 4ith basic ser(ices an* facilities an* access to e,plo5,ent an* li(elihoo* opportunities sufficient to ,eet the basic nee*s of the affecte* fa,ilies+ <E,phasis supplie*+=

&an*s belon-in- to the National !o(ern,ent inclu*e foreshore an* sub,er-e* lan*s 4hich can be reclai,e* to un*erta:e housin- *e(elop,ent an* resettle,ent pro8ects+ ?+ MO C./ e3plains the un*erta:in- of the N)A in SM$RP:

7)EREAS, Me,oran*u, Or*er No+ .9.#A ,an*ate* the National )ousin- Authorit5 to con*uct feasibilit5 stu*ies !"# #'0'3o. 3o8-(o*) &o,*/"- .+o1'()* !) )&' #,2.*/)'* o4 ')+o !"/3!@

7)EREAS, the National )ousin- Authorit5 has presente* a (iable Conceptual Plan to con(ert the S,o:e5 Mountain *u,psite into a habitable housin- pro8ect /"(3,*/0' o4 )&' +'(3!2!)/o" !+'! !(+o** R-1A !* '"!53/"- (o2.o"'") o4 )&' P+o1'()@ 7)EREAS, the sai* Plan reAuires the coor*inate* an* s5nchroniFe* efforts of the Cit5 of Manila an* other -o(ern,ent a-encies an* instru,entalities )o '"*,+' '44'()/0' !"# '44/(/'") /2.3'2'")!)/o"@ 7)EREAS, the -o(ern,ent encoura-es .+/0!)' *'()o+ /"/)/!)/0' in the i,ple,entation of its pro8ects+ <E,phasis supplie*+=

Procee*in- fro, these H4hereasI clauses, it is uneAui(ocal that recla,ation of lan* in the S,o:e5 Mountain area is an essential an* (ital po4er of the N)A to effecti(el5 i,ple,ent its a(o4e* -oal of *e(elopinlo4#cost housin- units at the S,o:e5 Mountain *u,psites+ The interpretation ,a*e b5 no less than the Presi*ent of the Philippines as Chief of the E3ecuti(e Branch, of 4hich the N)A is a part, ,ust necessaril5 co,,an* respect an* ,uch 4ei-ht an* cre*it+ C+ RA 9>/2 as a,en*e* b5 RA 22.EDthe BOT &a4Dser(es as an

e3ception to P$ .1EC an* EO /0/+ Base* on the pro(isions of the BOT &a4 an* ,ple,entin- Rules an* Re-ulations, it is uneAui(ocal that all -o(ern,ent infrastructure a-encies li:e the N)A can un*erta:e infrastructure or *e(elop,ent pro8ects usin- the contractual arran-e,ents prescribe* b5 the la4, an* lan* recla,ation is one of the pro8ects that can be resorte* to in the BOT pro8ect i,ple,entation un*er the Gebruar5 .1, .>>0 ;oint Resolution No+ ? of the Eth Con-ress+ Gro, the fore-oin- consi*erations, 4e fin* that the N)A has a,ple i,plie* authorit5 to un*erta:e recla,ation pro8ects+ E(en 4ithout an i,plie* po4er to reclai, lan*s un*er N)AMs charter, 4e rule that the authorit5 -rante* to N)A, a national -o(ern,ent a-enc5, b5 the Presi*ent un*er P$ ?#A reinforce* b5 EO /0/ is ,ore than sufficient statutor5 basis for the recla,ation of lan*s un*er the SM$RP+

P$ ?#A is a la4 issue* b5 then Presi*ent Ger*inan* E+ Marcos un*er his ,artial la4 po4ers on Septe,ber 0?, .>20+ t pro(i*e* that HJtKhe pro(isions of an5 la4 to the contrar5 not4ithstan*in-, the recla,ation of areas, un*er4ater, 4hether foreshore or inlan*, shall be li,ite* to the National !o(ern,ent or an5 person authoriFe* b5 it un*er the proper contract+I t repeale*, in effect, RA .E>> 4hich pre(iousl5 *ele-ate* the ri-ht to reclai, lan*s to ,unicipalities an* chartere* cities an* re(este* it to the National !o(ern,ent+9E Un*er P$ ?#A, Hnational -o(ern,entI can onl5 ,ean the E3ecuti(e Branch hea*e* b5 the Presi*ent+ t cannot refer to Con-ress as it 4as *issol(e* an* abolishe* at the ti,e of the issuance of P$ ?#A on Septe,ber 0?, .>20+ Moreo(er, the E3ecuti(e Branch is the onl5 i,ple,entin- ar, in the -o(ern,ent 4ith the eAuip,ent, ,anpo4er, e3pertise, an* capabilit5 b5 the (er5 nature of its assi-ne* po4ers an* functions to un*erta:e recla,ation pro8ects+ Thus, un*er P$ ?#A, the E3ecuti(e Branch throu-h the Presi*ent can i,ple,ent recla,ation of lan*s throu-h an5 of its *epart,ents, a-encies, or offices+ SubseAuentl5, on Gebruar5 C, .>22, Presi*ent Marcos issue* P$ .1EC creatin- the PEA, 4hich 4as -rante*, a,on- others, the po4er Hto reclai, lan*, inclu*in- foreshore an* sub,er-e* areas b5 *re*-in-, fillin- or other ,eans or to acAuire reclai,e* lan*s+I The PEAMs po4er to reclai, is not ho4e(er e3clusi(e as can be -leane* fro, its charter, as the Presi*ent retaine* his po4er un*er P$ ?#A to *esi-nate another a-enc5 to reclai, lan*s+ On Gebruar5 .C, .>2>, EO /0/ 4as issue*+ t -rante* PEA pri,ar5

responsibilit5 for inte-ratin-, *irectin-, an* coor*inatin- recla,ation pro8ects for an* on behalf of the National !o(ern,ent althou-h other national -o(ern,ent a-encies can be *esi-nate* b5 the Presi*ent to reclai, lan*s in coor*ination 4ith the PEA+ $espite the issuance of EO /0/, P$ ?# A re,aine* (ali* an* subsistin-+ Thus, the National !o(ern,ent throu-h
9E

Republic v. Cou!# o) Appeals, !+R+ No+ .1?EE0, No(e,ber 0/, .>>E, 0>> SCRA .>>, ?1?+

the Presi*ent still retaine* the po4er an* control o(er all recla,ation pro8ects in the countr5+ The po4er of the National !o(ern,ent throu-h the Presi*ent o(er recla,ation of areas, that is, un*er4ater 4hether foreshore or inlan*, 4as ,a*e clear in EO /C?9> 4hich too: effect on ;une 0C, 0119+ Un*er EO /C?, PEA 4as rena,e* the Philippine Recla,ation Authorit5 <PRA= an* 4as -rante* the authorit5 to appro(e recla,ation pro8ects, a po4er pre(iousl5 repose* in the Presi*ent un*er EO /0/+ EO /C? rea*s:
Section .+ T&' .o8'+ o4 )&' P+'*/#'") )o !..+o0' +'(3!2!)/o" .+o1'()* /* &'+'56 #'3'-!)'# )o )&' P&/3/../"' R'(3!2!)/o" A,)&o+/)6 Jfor,erl5 PEAK, throu-h its -o(ernin- boar*, sub8ect to co,pliance 4ith e3istin- la4s an* rules an* sub8ect to the con*ition that recla,ation contracts to be e3ecute* 4ith an5 person or entit5 -o throu-h public bi**in-+ Section 0+ No)&/"- /" )&' O+#'+ *&!33 5' (o"*)+,'# !* #/2/"/*&/"- )&' P+'*/#'")>* !,)&o+/)6 )o 2o#/46, !2'"# o+ ",33/46 PRA>* !()/o". Section ?+ All e3ecuti(e issuances inconsistent 4ith this E3ecuti(e Or*er are hereb5 repeale* or a,en*e* accor*in-l5+ <E,phasis supplie*+=

Sec+ 0 of EO /C? stren-thene* the po4er of control an* super(ision of the Presi*ent o(er recla,ation of lan*s as s6he can ,o*if5, a,en*, or nullif5 the action of PEA <no4 PRA=+ Gro, the fore-oin- issuances, 4e conclu*e that the Presi*entMs *ele-ation to N)A, a national -o(ern,ent a-enc5, to reclai, lan*s un*er the SM$RP, is le-al an* (ali*, fir,l5 anchore* on P$ ?#A buttresse* b5 EO /0/ not4ithstan*in- the absence of an5 specific -rant of po4er un*er its charter, P$ 2/2+

S'(o"# I**,'% ?&')&'+ +'*.o"#'")* NHA !"# RBI 8'+' -/0'" )&' .o8'+ !"# !,)&o+/)6 56 DENR )o +'(3!/2 4o+'*&o+' !"# *,52'+-'# 3!"#*
H$ele-atin- to the Philippine Recla,ation Authorit5 the Po4er to Appro(e Recla,ation Pro8ectsI <0119=+
9>

Petitioner Cha(eF puts forth the (ie4 that e(en if the N)A an* RB 4ere -rante* the authorit5 to reclai,, the5 4ere not authoriFe* to *o so b5 the $ENR+ A-ain, reliance is ,a*e on our rulin- in P"A 4here it 4as hel* that the $ENRMs authorit5 is necessar5 in or*er for the -o(ern,ent to (ali*l5 reclai, foreshore an* sub,er-e* lan*s+ ,anner: n P"A, 4e e3poun*e* in this

As ,ana-er, conser(ator an* o(erseer of the natural resources of the State, $ENR e3ercises Hsuper(ision an* control o(er alienable an* *isposable public lan*s+I $ENR also e3ercises He3clusi(e 8uris*iction on the ,ana-e,ent an* *isposition of all lan*s of the public *o,ain+I Thus, $ENR *eci*es 4hether areas un*er 4ater, li:e foreshore or sub,er-e* areas of Manila Ba5, shoul* be reclai,e* or not+ This ,eans that PEA nee*s authoriFation fro, $ENR before PEA can un*erta:e recla,ation pro8ects in Manila Ba5, or in an5 part of the countr5+ $ENR also e3ercises e3clusi(e 8uris*iction o(er the *isposition of all lan*s of the public *o,ain+ )ence, $ENR *eci*es 4hether reclai,e* lan*s of PEA shoul* be classifie* as alienable un*er Sections 9 an* 2 of CA No+ .C.+ Once $ENR *eci*es that the reclai,e* lan*s shoul* be so classifie*, it then reco,,en*s to the Presi*ent the issuance of a procla,ation classif5in- the lan*s as alienable or *isposable lan*s of the public *o,ain open to *isposition+ 7e note that then $ENR Secretar5 Gul-encio S+ Gactoran, ;r+ countersi-ne* Special Patent No+ ?/.2 in co,pliance 4ith the Re(ise* A*,inistrati(e Co*e an* Sections 9 an* 2 of CA No+ .C.+ n short, $ENR is (este* 4ith the po4er to authoriFe the recla,ation of areas un*er 4ater, 4hile PEA is (este* 4ith the po4er to un*erta:e the ph5sical recla,ation of areas un*er 4ater, 4hether *irectl5 or throu-h pri(ate contractors+ $ENR is also e,po4ere* to classif5 lan*s of the public *o,ain into alienable or *isposable lan*s sub8ect to the appro(al of the Presi*ent+ On the other han*, PEA is tas:e* to *e(elop, sell or lease the reclai,e* alienable lan*s of the public *o,ain+21

$espite our fin*in- that P"A is not a prece*ent to the case at bar, 4e fin* after all that un*er e3istin- la4s, the N)A is still reAuire* to procure $ENRMs authoriFation before a recla,ation pro8ect in Manila Ba5 or in an5 part of the Philippines can be un*erta:en+ The reAuire,ent applies to PEA, N)A, or an5 other -o(ern,ent a-enc5 or office -rante* 4ith such po4er un*er the la4+
21

Supra note /1, at 000#00?+

Not4ithstan*in- the nee* for $ENR per,ission, 4e ne(ertheless fin* petitionerMs position bereft of ,erit+ The $ENR is *ee,e* to ha(e -rante* the authorit5 to reclai, in the S,o:e5 Mountain Pro8ect for the follo4in- reasons: .+ Sec+ .2, Art+ % of the Constitution pro(i*es that Hthe

Presi*ent shall ha(e control of all e3ecuti(e *epart,ents, bureaus an* offices+I The Presi*ent is assi-ne* the tas: of seein- to it that all la4s are faithfull5 e3ecute*+ HControl,I in a*,inistrati(e la4, ,eans Hthe po4er of an officer to alter, ,o*if5, nullif5 or set asi*e 4hat a subor*inate officer has *one in the perfor,ance of his *uties an* to substitute the 8u*-,ent of the for,er for that of the latter+I2. As such, the Presi*ent can e3ercise e3ecuti(e po4er o#u p!op!io an*

can supplant the act or *ecision of a subor*inate 4ith the Presi*entMs o4n+ The $ENR is a *epart,ent in the e3ecuti(e branch un*er the Presi*ent, an* it is onl5 an alter e-o of the latter+ Or*inaril5 the propose* action an* the staff 4or: are initiall5 *one b5 a *epart,ent li:e the $ENR an* then sub,itte* to the Presi*ent for appro(al+ )o4e(er, there is nothin- infir, or unconstitutional if the Presi*ent *eci*es on the i,ple,entation of a certain pro8ect or acti(it5 an* reAuires sai* *epart,ent to i,ple,ent it+ Such is a presi*ential prero-ati(e as lon- as it in(ol(es the *epart,ent or office authoriFe* b5 la4 to super(ise or e3ecute the Pro8ect+ Thus, as in this case, 4hen the Presi*ent appro(e* an* or*ere* the *e(elop,ent of a housinpro8ect 4ith the correspon*in- recla,ation 4or:, ,a:in- $ENR a ,e,ber of the co,,ittee tas:e* to i,ple,ent the pro8ect, the reAuire* authoriFation fro, the $ENR to reclai, lan* can be *ee,e* satisfie*+ t cannot be *ispute* that the ulti,ate po4er o(er alienable an* *isposable public lan*s is repose* in the Presi*ent of the Philippines an* not the $ENR Secretar5+ To still reAuire a $ENR authoriFation on the S,o:e5 Mountain 4hen the
2.

,aule v. $an#os, !+R+ No+ >1??9, Au-ust .0, .>>., 011 SCRA /.0, /0.#/00+

Presi*ent has alrea*5 authoriFe* an* or*ere* the i,ple,entation of the Pro8ect 4oul* be a *ero-ation of the po4ers of the Presi*ent as the hea* of the e3ecuti(e branch+ Other4ise, an5 *epart,ent hea* can *ef5 or oppose the i,ple,entation of a pro8ect appro(e* b5 the hea* of the e3ecuti(e branch, 4hich is patentl5 ille-al an* unconstitutional+ n Chavez v. Ro ulo, 4e state* that 4hen a statute i,poses a specific *ut5 on the e3ecuti(e *epart,ent, the Presi*ent ,a5 act *irectl5 or or*er the sai* *epart,ent to un*erta:e an acti(it5, thus:
JAKt the ape3 of the entire e3ecuti(e official*o, is the Presi*ent+ Section .2, Article % of the Constitution specifies JherK po4er as Chief e3ecuti(e *epart,ents, bureaus an* offices+ JSheK shall ensure that the la4s be faithfull5 e3ecute*+ As Chief E3ecuti(e, Presi*ent Arro5o hol*s the steerin- 4heel that controls the course of her -o(ern,ent+ She la5s *o4n policies in the e3ecution of her plans an* pro-ra,s+ 7hate(er polic5 she chooses, she has her subor*inates to i,ple,ent the,+ n short, she has the po4er of control+ ?&'"'0'+ ! *.'(/4/( 4,"()/o" /* '")+,*)'# 56 3!8 o+ +'-,3!)/o" )o &'+ *,5o+#/"!)', *&' 2!6 !() #/+'()36 o+ 2'+'36 #/+'() )&' .'+4o+2!"(' o4 ! #,)6 3 3 3+ S,(& !() /* 8'33 8/)&/" )&' .+'+o-!)/0' o4 &'+ o44/(' <e,phasis supplie*=+20

Moreo(er, the po4er to or*er the recla,ation of lan*s of public *o,ain is repose* first in the Philippine Presi*ent+ The Re(ise* A*,inistrati(e Co*e of .>E2 -rants authorit5 to the Presi*ent to reser(e lan*s of public *o,ain for settle,ent for an5 specific purpose, thus:

Section .C+ Po4er to Reser(e &an*s of the Public an* Pri(ate $o,ain of the !o(ern,ent+D<.= The Presi*ent shall ha(e the po4er to +'*'+0' 4o+ *'))3'2'") or public use, an* 4o+ *.'(/4/( .,53/( .,+.o*'*, !"6 o4 )&' 3!"#* o4 )&' .,53/( #o2!/", the use of 4hich is not other4ise *irecte* b5 la4+ The reser(e* lan* shall thereafter re,ain sub8ect to the specific public purpose in*icate* until other4ise pro(i*e* b5 la4 or procla,ation+ <E,phasis supplie*+=

Presi*ent AAuino reser(e* the area of the S,o:e5 Mountain *u,psite for settle,ent an* issue* MO C./ authoriFin- the i,ple,entation of the S,o:e5 Mountain $e(elop,ent Pro8ect plus the recla,ation of the area
20

!+R+ No+ ./21?9, ;une >, 011C, C?. SCRA /?C, ///@ citin- EO 0>0, Boo: %, Chapter 2+

across R#.1+ Then Presi*ent Ra,os issue* Procla,ation No+ ?> co(erinthe 0.#hectare *u,psite an* the C1#hectare co,,ercial6in*ustrial area, an* Procla,ation No+ C9/ an* MO C./ increasin- the area of foreshore an* sub,er-e* lan*s of Manila Ba5 to be reclai,e* fro, C1 to 2> hectares+ )a(in- super(ision an* control o(er the $ENR, both Presi*ents *irectl5 assu,e* an* e3ercise* the po4er -rante* b5 the Re(ise* A*,inistrati(e Co*e to the $ENR Secretar5 to authoriFe the N)A to reclai, sai* lan*s+ 7hat can be *one in*irectl5 b5 the $ENR can be *one *irectl5 b5 the Presi*ent+ t 4oul* be absur* if the po4er of the Presi*ent cannot be f e3ercise* si,pl5 because the hea* of a *epart,ent in the e3ecuti(e branch has not acte* fa(orabl5 on a pro8ect alrea*5 appro(e* b5 the Presi*ent+ po4erful than the Presi*ent+ 0+ Un*er Sec+ 0 of MO C./, the $ENR is one of the ,e,bers of such arran-e,ent is allo4e* then the *epart,ent hea* 4ill beco,e ,ore

the ELECOM chaire* b5 the NCR#COR$ to o(ersee the i,ple,entation of the Pro8ect+ The ELECOM 4as the one 4hich reco,,en*e* appro(al of the pro8ect plan an* the 8oint (enture a-ree,ents+ Clearl5, the $ENR retaine* its po4er of super(ision an* control o(er the la4s affecte* b5 the Pro8ect since it 4as tas:e* to Hfacilitate the titlin- of the S,o:e5 Mountain an* of the area to be reclai,e*,I 4hich sho4s that it ha* tacitl5 -i(en its authorit5 to the N)A to un*erta:e the recla,ation+ ?+ Gor,er $ENR Secretar5 An-el C+ Alcala issue* Special

Patents Nos+ ?/>. an* ?/>0 4hile then Secretar5 %ictor O+ Ra,os issue* Special Patent No+ ?/>E that e,brace* the areas co(ere* b5 the recla,ation+ These patents con(e5e* the lan*s to be reclai,e* to the N)A an* -rante* to sai* a-enc5 the a*,inistration an* *isposition of sai* lan*s for sub*i(ision an* *isposition to Aualifie* beneficiaries an* for *e(elop,ent for ,i3 lan* use <co,,ercial6in*ustrial= Hto pro(i*e e,plo5,ent opportunities to on#site fa,ilies an* a**itional areas for port relate* acti(ities+I Such -rant of authorit5 to a*,inister an* *ispose of lan*s of public *o,ain un*er the

SM$RP is of course sub8ect to the po4ers of the ELECOM of SM$RP, of 4hich the $ENR is a ,e,ber+ C+ The issuance of ECCs b5 the $ENR for SM$RP is but an

e3ercise of its po4er of super(ision an* control o(er the lan*s of public *o,ain co(ere* b5 the Pro8ect+ Base* on these reasons, it is clear that the $ENR, throu-h its acts an* issuances, has ratifie* an* confir,e* the recla,ation of the sub8ect lan*s for the purposes lai* *o4n in Procla,ations Nos+ ?> an* C9/+

T&/+# I**,'% ?&')&'+ +'*.o"#'") RBI (!" !(7,/+' +'(3!/2'# 4o+'*&o+' !"# *,52'+-'# 3!"#* (o"*/#'+'# !* /"!3/'"!53' !"# o,)*/#' )&' (o22'+(' o4 2!" Petitioner postulates that respon*ent RB cannot acAuire the reclai,e* foreshore an* sub,er-e* areas as these are inalienable public lan*s be5on* the co,,erce of ,an base* on Art+ .C1> of the Ci(il Co*e 4hich pro(i*es:
Article .C1>+ The follo4in- contracts are ine3istent an* (oi* fro, the be-innin-: <.= Those 4hose cause, ob8ect or purpose is contrar5 to la4, ,orals, -oo* custo,s, public or*er or public polic5@ 3333 <2= Those e3pressl5 prohibite* or *eclare* (oi* b5 la4+

These contracts cannot be ratifie*+ Neither can the ri-ht to set up the *efense of ille-alit5 be 4ai(e*+

Secs+ 0 an* ?, Art+ L

of the Constitution *eclare that all natural

resources are o4ne* b5 the State an* the5 cannot be alienate* e3cept for alienable a-ricultural lan*s of the public *o,ain+ One of the StateMs natural resources are lan*s of public *o,ain 4hich inclu*e reclai,e* lan*s+ Petitioner conten*s that for these reclai,e* lan*s to be alienable, there ,ust be a la4 or presi*ential procla,ation officiall5 classif5in- these

reclai,e* lan*s as alienable an* *isposable an* open to *isposition or concession+ Absent such la4 or procla,ation, the reclai,e* lan*s cannot be the enablin- co,ponent or consi*eration to be pai* to RB as these are be5on* the co,,erce of ,an+ 7e are not con(ince* of petitionerMs postulation+ The reclai,e* lan*s across R#.1 4ere classifie* alienable an* *isposable lan*s of public *o,ain of the State for the follo4in- reasons, (iF: Girst, there 4ere three <?= presi*ential procla,ations classif5in- the reclai,e* lan*s across R#.1 as alienable or *isposable hence open to *isposition or concession, to 4it: <.= MO C./ issue* b5 Presi*ent AAuino, of 4hich Sec+ C states that

HJtKhe lan* co(ere* b5 the S,o:e5 Mountain $u,psite is hereb5 con(e5e* to the National )ousin- Authorit5 as 4ell as the area to be reclai,e* across R#.1+I

The *irecti(e to transfer the lan*s once reclai,e* to the N)A i,plicitl5 carries 4ith it the *eclaration that sai* lan*s are alienable an* *isposable+ Other4ise, the N)A cannot effecti(el5 use the, in its housinan* resettle,ent pro8ect+ <0= Procla,ation No+ ?> issue* b5 then Presi*ent Ra,os b5 4hich

the reclai,e* lan*s 4ere con(e5e* to N)A for sub*i(ision an* *isposition to Aualifie* beneficiaries an* for *e(elop,ent into a ,i3e* lan* use <co,,ercial6in*ustrial= to pro(i*e e,plo5,ent opportunities to on#site fa,ilies an* a**itional areas for port#relate* acti(ities+ Sai* *irecti(e carries 4ith it the pronounce,ent that sai* lan*s ha(e been transfor,e* to alienable an* *isposable lan*s+ Other4ise, there is no le-al 4a5 to con(e5 it to the beneficiaries+

<?=

Procla,ation No+ C9/ li:e4ise issue* b5 Presi*ent Ra,os

enlar-e* the reclai,e* area to 2> hectares to be *e(elope* an* *ispose* of in the i,ple,entation of the SM$RP+ The authorit5 put into the han*s of the N)A to *ispose of the reclai,e* lan*s tacitl5 sustains the con(ersion to alienable an* *isposable lan*s+ Secon*l5, Special Patents Nos+ ?/>., ?/>0, an* ?/>E issue* b5 the $ENR anchore* on Procla,ations Nos+ ?> an* C9/ issue* b5 Presi*ent Ra,os, 4ithout *oubt, classifie* the reclai,e* areas as alienable an* *isposable+ A*,itte*l5, it cannot be sai* that MO C./, Procla,ations Nos+ ?> an* C9/ are e3plicit *eclarations that the lan*s to be reclai,e* are classifie* as alienable an* *isposable+ 7e fin* ho4e(er that such conclusion is *eri(e* an* i,plicit fro, the authorit5 -i(en to the N)A to transfer the reclai,e* lan*s to Aualifie* beneficiaries+ The Auer5 is, 4hen *i* the *eclaration ta:e effectR t *i* so onl5 after the special patents co(erin- the reclai,e* areas 4ere issue*+ t is onl5 on such *ate that the reclai,e* lan*s beca,e alienable an* *isposable lan*s of the public *o,ain+ This is in line 4ith the rulin- in P"A 4here sai* issue 4as clarifie* an* stresse*:
PD No. 1AD5, (o,.3'# 8/)& P+'*/#'") A7,/"o>* actual issuance o4 ! *.'(/!3 .!)'") (o0'+/"- )&' F+''#o2 I*3!"#*, /* '7,/0!3'") )o !" o44/(/!3 .+o(3!2!)/o" (3!**/46/"- )&' F+''#o2 I*3!"#* !* !3/'"!53' o+ #/*.o*!53' 3!"#* o4 )&' .,53/( #o2!/" + P$ No+ .1E/ an* Presi*ent AAuinoMs issuance of a lan* patent !3*o (o"*)/),)' ! #'(3!+!)/o" )&!) )&' F+''#o2 I*3!"#* !+' "o 3o"-'+ "''#'# 4o+ .,53/( *'+0/(' + ,he -!eedo +slands a!e #hus alienable o! disposable lands o) #he public do ain* open #o disposi#ion o! concession #o &uali)ied pa!#ies. 2? <E,phasis supplie*+=

2?

Supra note /1, at 0.2+

Thus, MO C./ an* Procla,ations Nos+ ?> an* C9/ cu,ulati(el5 an* 8ointl5 ta:en to-ether 4ith Special Patent Nos+ ?/>., ?/>0, an* ?/>E ,ore than satisf5 the reAuire,ent in P"A that HJtKhere ,ust be a la4 or .+'*/#'")/!3 .+o(3!2!)/o" officiall5 classif5in- these reclai,e* lan*s as alienable or *isposable an* open to *isposition or concession <e,phasis supplie*=+I2C Apropos the reAuisite la4 cate-oriFin- reclai,e* lan* as alienable or *isposable, 4e fin* that RA 9>/2 as a,en*e* b5 RA 22.E pro(i*es a,ple authorit5 for the classification of reclai,e* lan* in the SM$RP for the repa5,ent sche,e of the BOT pro8ect as alienable an* *isposable lan*s of public *o,ain+ Sec+ 9 of RA 9>/2 as a,en*e* b5 RA 22.E pro(i*es:
Gor the financin-, construction, operation an* ,aintenance of an5 infrastructure pro8ects un*erta:en throu-h the buil*#operate#an* transfer arran-e,ent or an5 of its (ariations pursuant to the pro(isions of this Act, the pro8ect proponent 3 3 3 ,a5 li:e4ise be repai* in the for, of a share in the re(enue of the pro8ect or other non#,onetar5 pa5,ents, such as, but not li,ite* to, )&' -+!") o4 ! .o+)/o" o+ .'+('")!-' o4 )&' +'(3!/2'# 3!"#, sub8ect to the constitutional reAuire,ents 4ith respect to the o4nership of the lan*+ <E,phasis supplie*+=

7hile RA 9>/2 as ,o*ifie* b5 RA 22.E *oes not e3pressl5 *eclare that the reclai,e* lan*s that shall ser(e as pa5,ent to the pro8ect proponent ha(e beco,e alienable an* *isposable lan*s an* opene* for *isposition@ nonetheless, this conclusion is necessaril5 i,plie*, for ho4 else can the lan* be use* as the enablin- co,ponent for the Pro8ect if such classification is not *ee,e* ,a*eR t ,a5 be ar-ue* that the -rant of authorit5 to sell public lan*s, pursuant to P"A, *oes not con(ert alienable lan*s of public *o,ain into pri(ate or patri,onial lan*s+ 7e rule* in P"A that H!3/'"!53' 3!"#* o4 .,53/( #o2!/" 2,*) 5' )+!"*4'++'# )o 7,!3/4/'# .+/0!)' .!+)/'*, o+ )o -o0'+"2'") '")/)/'* "o) )!*@'# )o #/*.o*' o4 .,53/( 3!"#*, 5'4o+' )&'*' 3!"#* (!" 5'(o2' .+/0!)' o+ .!)+/2o"/!3 3!"#* <e,phasis supplie*=+I2/
2C 2/

*+ at 0.9+ *+ at 0?/+

To lan*s reclai,e* b5 PEA or throu-h a contract 4ith a pri(ate person or entit5, such reclai,e* lan*s still re,ain alienable lan*s of public *o,ain 4hich can be transferre* onl5 to Gilipino citiFens but not to a pri(ate corporation+ This is because PEA un*er P$ .1EC an* EO /0/ is tas:e* to hol* an* *ispose of alienable lan*s of public *o,ain an* it is onl5 4hen it is transferre* to Gilipino citiFens that it beco,es patri,onial propert5+ On the other han*, the N)A is a -o(ern,ent a-enc5 "o) tas:e* to *ispose of public lan*s un*er its charterDThe Re(ise* A*,inistrati(e Co*e of .>E2+ The N)A is an Hen*#user a-enc5I authoriFe* b5 la4 to a*,inister an* *ispose of reclai,e* lan*s+ The ,o,ent titles o(er reclai,e* lan*s base* on the special patents are transferre* to the N)A b5 the Re-ister of $ee*s, the5 are auto,aticall5 con(erte* to patri,onial properties of the State 4hich can be sol* to Gilipino citiFens an* pri(ate corporations, 91N of 4hich are o4ne* b5 Gilipinos+ The reason is ob(ious: if the reclai,e* lan* is not con(erte* to patri,onial lan* once transferre* to N)A, then it 4oul* be useless to transfer it to the N)A since it cannot le-all5 transfer or alienate lan*s of public *o,ain+ More i,portantl5, it cannot attain its a(o4e* purposes an* -oals since it can onl5 transfer patri,onial lan*s to Aualifie* beneficiaries an* prospecti(e bu5ers to raise fun*s for the SM$RP+ Gro, the fore-oin- consi*erations, 4e fin* that the 2>#hectare reclai,e* lan* has been *eclare* alienable an* *isposable lan* of the public *o,ain@ an* in the han*s of N)A, it has been reclassifie* as patri,onial propert5+ Petitioner, ho4e(er, conten*s that the reclai,e* lan*s 4ere ine3istent prior to the three <?= Presi*ential Acts <MO C./ an* Procla,ations Nos+ ?> an* C9/= an* hence, the *eclaration that such areas are alienable an* *isposable lan* of the public *o,ain, citin- P"A* has no le-al basis+ PetitionerMs contention is not 4ell#ta:en+

PetitionerMs sole reliance on Procla,ations Nos+ ?> an* C9/ 4ithout ta:in- into consi*eration the special patents issue* b5 the $ENR *e,onstrates the inherent 4ea:ness of his proposition+ As 4as rule* in P"A cite* b5 petitioner hi,self, HP$ No+ .1E/, couple* 4ith Presi*ent AAuinoMs actual issuance of a special patent co(erin- the Gree*o, alienable or *isposable lan*s of public *o,ain+I slan*s is eAui(alent to an official procla,ation classif5in- the Gree*o, islan*s as n a si,ilar (ein, the co,bine* an* collecti(e effect of Procla,ations Nos+ ?> an* C9/ 4ith Special Patents Nos+ ?/>0 an* ?/>E is tanta,ount to an* can be consi*ere* to be an official *eclaration that the reclai,e* lots are alienable or *isposable lan*s of the public *o,ain+ The reclai,e* lan*s co(ere* b5 Special Patents Nos+ ?/>., ?/>0, an* ?/>E, 4hich e(i*ence transfer of o4nership of reclai,e* lan*s to the N)A, are official acts of the $ENR Secretar5 in the e3ercise of his po4er of super(ision an* control o(er alienable an* *isposable public lan*s an* his e3clusi(e 8uris*iction o(er the ,ana-e,ent an* *isposition of all lan*s of public *o,ain un*er the Re(ise* A*,inistrati(e Co*e of .>E2+ Special Patent No+ ?/>0 spea:s of the transfer of &ots . an* 0, an* R #11?>1.# 1111.0#$ 4ith an area of C1.,CE/ sAuare ,eters base* on the sur(e5 an* technical *escription appro(e* b5 the Bureau of &an*s+ &astl5, Special Patent No+ ?/>E 4as issue* in fa(or of the N)A transferrin- to sai* a-enc5 a tract of lan* *escribe* in Plan R&#11#1111.? 4ith an area of ?>1,111 sAuare ,eters base* on the sur(e5 an* technical *escriptions appro(e* b5 the Bureau of &an*s+ The con*uct of the sur(e5, the preparation of the sur(e5 plan, the co,putation of the technical *escription, an* the processin- an* preparation of the special patent are ,atters 4ithin the technical area of e3pertise of a*,inistrati(e a-encies li:e the $ENR an* the &an* Mana-e,ent Bureau an* are -enerall5 accor*e* not onl5 respect but at ti,es e(en finalit5+ 29
29

Republic o) #he Philippines v. Manila "lec#!ic Co pany , !+R+ No+ .C.?.C, April >, 011?, C1. SCRA .?1, .C.+

Preparation of special patents calls for technical e3a,ination an* a specialiFe* re(ie4 of calculations an* specific *etails 4hich the courts are ill#eAuippe* to un*erta:e@ hence, the latter *efer to the a*,inistrati(e a-enc5 4hich is traine* an* :no4le*-eable on such ,atters+22 SubseAuentl5, the special patents in the na,e of the N)A 4ere sub,itte* to the Re-ister of $ee*s of the Cit5 of Manila for re-istration, an* correspon*in- certificates of titles o(er the reclai,e* lots 4ere issue* base* on sai* special patents+ The issuance of certificates of titles in N)AMs na,e auto,aticall5 con(erts the reclai,e* lan*s to patri,onial properties of the N)A+ Other4ise, the lots 4oul* not be of use to the N)AMs housinpro8ects or as pa5,ent to the BOT contractor as the enablin- co,ponent of the BOT contract+ The la4s of the lan* ha(e to be applie* an* interprete* *epen*in- on the chan-in- con*itions an* ti,es+ ,e po!a u#an#u! e# legis u#an#u! in illis <ti,e chan-es an* la4s chan-e 4ith it=+ One such la4 that shoul* be treate* *ifferentl5 is the BOT &a4 <RA 9>/2= 4hich brou-ht about a no(el 4a5 of i,ple,entin- -o(ern,ent contracts b5 allo4inreclai,e* lan* as part or full pa5,ent to the contractor of a -o(ern,ent pro8ect to satisf5 the hu-e financial reAuire,ents of the un*erta:in-+ The N)A hol*s the lan*s co(ere* b5 Special Patents Nos+ ?/>0 an* ?/>E solel5 for the purpose of the SM$RP un*erta:en b5 authorit5 of the BOT &a4 an* for *isposition in accor*ance 4ith sai* special la4+ The lan*s beco,e alienable an* *isposable lan*s of public *o,ain upon issuance of the special patents an* beco,e patri,onial properties of the !o(ern,ent fro, the ti,e the titles are issue* to the N)A+ As earl5 as .>>>, this Court in Baguio v. Republic lai* *o4n the 8urispru*ence that:
t is true that, once a patent is re-istere* an* the correspon*incertificate of title is issue*, the lan* co(ere* b5 the, ceases to be part of the public *o,ain an* beco,es pri(ate propert5, an* the Torrens Title issue* pursuant to the patent beco,es in*efeasible upon the e3piration of one 5ear fro, the *ate of issuance of such patent+2E
22 2E

*+ at .C0+ !+R+ No+ ..>9E0, ;anuar5 0., .>>>, ?1. SCRA C/1, C/C#C//+

The *octrine 4as reiterate* in Republic v. 0ei!s o) -elipe Ali(aga* $!.,2> 0ei!s o) Ca!los Alca!az v. Republic,E1 an* the ,ore recent case of .o!is Chiongbian4'liva v. Republic o) #he Philippines+E. Thus, the 2># hectare reclai,e* lan* beca,e patri,onial propert5 after the issuance of certificates of titles to the N)A base* on Special Patents Nos+ ?/>0 an* ?/>E+ One last point+ The rulin- in P"A cannot e(en be applie* retroacti(el5 to the lots co(ere* b5 Special Patents Nos+ ?/>0 <C1 hectare reclai,e* lan*= an* ?/>E <?>#hectare reclai,e* lan*=+ The recla,ation of the lan* un*er SM$RP 4as co,plete* in Au-ust .>>9 4hile the P"A *ecision 4as ren*ere* on ;ul5 >, 0110+ n the ,eanti,e, sub*i(i*e* lots for,in- parts of the reclai,e* lan* 4ere alrea*5 sol* to pri(ate corporations for (alue an* separate titles issue* to the bu5ers+ The Pro8ect 4as ter,inate* throu-h a Me,oran*u, of A-ree,ent si-ne* on Au-ust 02, 011?+ The P"A *ecision beca,e final throu-h the No(e,ber .., 011? Resolution+ t is a settle* precept that *ecisions of the Supre,e Court can onl5 be applie* prospecti(el5 as the5 ,a5 pre8u*ice (este* ri-hts if applie* retroacti(el5+ n Benzonan v. Cou!# o) Appeals, the Court trenchantl5 eluci*ate* the prospecti(e application of its *ecisions base* on consi*erations of eAuit5 an* fair pla5, thus:
At that ti,e, the pre(ailin- 8urispru*ence interpretin- section ..> of R+A+ .C. as a,en*e* 4as that enunciate* in Mon-e an* Tupas cite* abo(e+ The petitioners BenFonan an* respon*ent Pe an* the $BP are boun* b5 these *ecisions for pursuant to Article E of the Ci(il Co*e H8u*icial *ecisions appl5in- or interpretin- the la4s of the Constitution shall for, a part of the le-al s5ste, of the Philippines+I But 4hile our *ecisions for, part of the la4 of the lan*, the5 are also sub8ect to Article C of the Ci(il Co*e 4hich pro(i*es that Hla4s shall ha(e no retroacti(e effect unless the contrar5 is pro(i*e*+I This is e3presse* in the fa,iliar le-al ,a3i, le/ p!ospici#* non !espici# , the la4 loo:s for4ar* not bac:4ar*+ The rationale a-ainst retroacti(it5 is eas5 to percei(e+ The retroacti(e application of a la4 usuall5 *i(ests ri-hts that ha(e alrea*5 beco,e (este* or i,pairs the obli-ations of contract an* hence, is unconstitutional+
2> E1 E.

!+R+ No+ .C91?1, $ece,ber ?, 0110, ?>? SCRA ?9., ?2?+ !+R+ No+ .?.992, ;ul5 0E, 011/, C9C SCRA 0E1, 0>.+ !+R+ No+ .9?..E, April 02, 0112+

The sa,e consi*eration un*erlies our rulin-s -i(in- onl5 prospecti(e effect to *ecisions enunciatin- ne4 *octrines+ Thus, 4e e,phasiFe* in People (+ ;abinal, // SCRA 912 J.>2CK H3 3 3 4hen a *octrine of this Court is o(errule* an* a *ifferent (ie4 is a*opte*, the ne4 *octrine shoul* be applie* prospecti(el5 an* shoul* not appl5 to parties 4ho ha* relie* on the ol* *octrine an* acte* on the faith thereof+E0

Fo,+)& I**,'% ?&')&'+ +'*.o"#'") RBI (!" !(7,/+' +'(3!/2'# 3!"#* 8&'" )&'+' 8!* "o #'(3!+!)/o" )&!) *!/# 3!"#* !+' "o 3o"-'+ "''#'# 4o+ .,53/( ,*' Petitioner Cha(eF a(ers that *espite the *eclaration that the reclai,e* areas are alienable lan*s of the public *o,ain, still, the recla,ation is fla4e* for there 4as ne(er an5 *eclaration that sai* lan*s are no lon-er nee*e* for public use+ 7e are not ,o(e* b5 petitionerMs sub,ission+ E(en if it is conce*e* that there 4as no e3plicit *eclaration that the lan*s are no lon-er nee*e* for public use or public ser(ice, there 4as ho4e(er an i,plicit e3ecuti(e *eclaration that the reclai,e* areas R#.1 are not necessar5 an5,ore for public use or public ser(ice 4hen Presi*ent AAuino throu-h MO C./ con(e5e* the sa,e to the N)A partl5 for housinpro8ect an* relate* co,,ercial6in*ustrial *e(elop,ent inten*e* for *isposition to an* en8o5,ent of certain beneficiaries an* not the public in -eneral an* partl5 as enablin- co,ponent to finance the pro8ect+ Presi*ent Ra,os, in issuin- Procla,ation No+ ?>, *eclare*, thou-h in*irectl5, that the reclai,e* lan*s of the S,o:e5 Mountain pro8ect are no lon-er reAuire* for public use or ser(ice, thus:
These parcels of lan* of public *o,ain are hereb5 place* un*er the a*,inistration an* *isposition of the National )ousin- Authorit5 to *e(elop, sub*i(i*e an* #/*.o*' )o 7,!3/4/'# 5'"'4/(/!+/'* , as 4ell as its *e(elop,ent for ,i3 lan* use <co,,ercial6in*ustrial= to pro(i*e
E0

!+R+ No+ >2>2?, ;anuar5 02, .>>0, 01/ SCRA /./, /02+

e,plo5,ent opportunities to on#site fa,ilies an* a**itional areas for port relate* acti(ities+ <E,phasis supplie*+=

7hile nu,erical count of the persons to be benefite* is not the *eter,inant 4hether the propert5 is to be *e(ote* to public use, the *eclaration in Procla,ation No+ ?> un*eniabl5 i*entifies onl5 particular in*i(i*uals as beneficiaries to 4ho, the reclai,e* lan*s can be sol*, na,el5Dthe S,o:e5 Mountain *4ellers+ The rest of the Gilipinos are not Aualifie*@ hence, sai* lan*s are no lon-er essential for the use of the public in -eneral+ n a**ition, Presi*ent Ra,os issue* on Au-ust ?., .>>C Procla,ation No+ C9/ increasin- the area to be reclai,e* fro, fort5 <C1= hectares to se(ent5#nine <2>= hectares, eluci*atin- that sai* lan*s are un*oubte*l5 set asi*e for the beneficiaries of SM$RP an* not the publicD*eclarin- the po4er of N)A to *ispose of lan* to be reclai,e*, thus: HThe authorit5 to a*,inister, *e(elop, or dispose lands i*entifie* an* reser(e* b5 this Procla,ation an* Procla,ation No+ ?> <s+.>>0=, in accor*ance 4ith the SM$RP, as enhance, is vested with the NHA, sub8ect to the pro(isions of e3istin- la4s+I <E,phasis supplie*+=

MO C./ an* Procla,ations Nos+ ?> an* C9/ are *eclarations that proclai,e* the non#use of the reclai,e* areas for public use or ser(ice as the Pro8ect cannot be successfull5 i,ple,ente* 4ithout the 4ith*ra4al of sai* lan*s fro, public use or ser(ice+ Certainl5, the *e(otion of the reclai,e* lan* to public use or ser(ice conflicts 4ith the inten*e* use of the S,o:e5 Mountain areas for housin- an* e,plo5,ent of the S,o:e5 Mountain sca(en-ers an* for financin- the Pro8ect because the latter cannot be acco,plishe* 4ithout aban*onin- the public use of the sub8ect lan*+ 7ithout *oubt, the presi*ential procla,ations on SM$RP to-ether 4ith the issuance of the special patents ha* effecti(el5 re,o(e* the reclai,e* lan*s fro, public use+

More *ecisi(e an* not in so ,an5 4or*s is the rulin- in P"A 4hich 4e earlier cite*, that HP$ No+ .1E/ an* Presi*ent AAuinoMs issuance of a lan* patent also constitute a *eclaration that the Gree*o, slan*s are no lon-er nee*e* for public ser(ice+I ConseAuentl5, 4e rule* in that case that the reclai,e* lan*s are Hopen to *isposition or concession to Aualifie* parties+IE? n a si,ilar (ein, presi*ential Procla,ations Nos+ ?> an* C9/ 8ointl5 4ith the special patents ha(e classifie* the reclai,e* lan*s as alienable an* *isposable an* open to *isposition or concession as the5 4oul* be *e(ote* to units for S,o:e5 Mountain beneficiaries+ )ence, sai* lan*s are no lon-er inten*e* for public use or ser(ice an* shall for, part of the patri,onial properties of the State un*er Art+ C00 of the Ci(il Co*e+ EC As *iscusse* a p!io!i, the lan*s 4ere classifie* as patri,onial properties of the N)A rea*5 for *isposition 4hen the titles 4ere re-istere* in its na,e b5 the Re-ister of $ee*s+ Moreo(er, reclai,e* lan*s that are ,a*e the enablin- co,ponents of a BOT infrastructure pro8ect are "'('**!+/36 +'(3!**/4/'# as alienable an* *isposable lan*s un*er the BOT &a4@ other4ise, absur* an* illo-ical conseAuences 4oul* naturall5 result+ Un*oubte*l5, the BOT contract 4ill not be accepte* b5 the BOT contractor since there 4ill be no consi*eration for its contractual obli-ations+ Since reclai,e* lan* 4ill be con(e5e* to the contractor pursuant to the BOT &a4, then there is an i,plie* *eclaration that such lan* is no lon-er /")'"#'# 4o+ .,53/( ,*' o+ .,53/( *'+0/(' an*, hence, consi*ere* patri,onial propert5 of the State+ F/4)& I**,'% ?&')&'+ )&'+' /* ! 3!8 !,)&o+/=/"- *!3' o4 +'(3!/2'# 3!"#*

E? EC

Supra note 2?+ Article C00+ Propert5 of public *o,inion, 4hen no lon-er inten*e* for public use or public ser(ice, shall for, part of the patri,onial propert5 of the State+

Petitioner ne3t clai,s that RB cannot acAuire the reclai,e* lan*s because there 4as no la4 authoriFin- their sale+ )e ar-ues that unli:e PEA, no le-islati(e authorit5 4as -rante* to the N)A to sell reclai,e* lan*+ This position is ,isplace*+ Petitioner relies on Sec+ 91 of Co,,on4ealth Act <CA= .C. to support his (ie4 that the N)A is not e,po4ere* b5 an5 la4 to sell reclai,e* lan*, thus:

Section 91+ An5 tract of lan* co,prise* un*er this title ,a5 be lease* or sol*, as the case ,a5 be, to an5 person, corporation or association authoriFe* to purchase or lease public lan*s for a-ricultural purposes+ The area of the lan* so lease* or sol* shall be such as shall, in the 8u*-,ent of the Secretar5 of A-riculture an* Natural Resources, be reasonabl5 necessar5 for the purposes for 4hich such sale or lease if reAueste* an* shall in no case e3cee* one hun*re* an* fort5#four hectares: Pro(i*e*, ho4e(er, That this li,itation shall not appl5 to -rants, *onations, transfers, ,a*e to a pro(ince, ,unicipalit5 or branch or sub*i(ision of the !o(ern,ent for the purposes *ee,e* b5 sai* entities con*uci(e to the public interest@ 5,) )&' 3!"# *o -+!")'# #o"!)'# o+ )+!"*4'++'# )o ! .+o0/"(', 2,"/(/.!3/)6, o+ 5+!"(& o+ *,5#/0/*/o" o4 )&' Go0'+"2'") *&!33 "o) 5' !3/'"!)'#, '"(,25'+'#, o+ o)&'+8/*' #/*.o*'# o4 /" ! 2!""'+ !44'()/"- /)* )/)3', '9('.) 8&'" !,)&o+/='# 56 Co"-+'**E Pro(i*e*, further, That an5 person, corporation, association or partnership *isAualifie* fro, purchasin- public lan* for a-ricultural purposes un*er the pro(isions of this Act, ,a5 lease lan* inclu*e* un*er this title suitable for in*ustrial or resi*ential purposes, but the lease -rante* shall onl5 be (ali* 4hile such lan* is use* for the purposes referre* to+ <E,phasis supplie*+=

Reliance on sai* pro(ision is incorrect as the sa,e applies onl5 to Ha pro(ince, ,unicipalit5 or branch or sub*i(ision of the !o(ern,ent+I The N)A is not a -o(ern,ent unit but a -o(ern,ent corporation perfor,in-o(ern,ental an* proprietar5 functions+ n a**ition, P$ 2/2 is clear that the N)A is e,po4ere* b5 la4 to transfer properties acAuire* b5 it un*er the la4 to other parties, thus:
Section 9+ Po1e!s and )unc#ions o) #he Au#ho!i#y+ The Authorit5 shall ha(e the follo4in- po4ers an* functions to be e3ercise*

b5 the Boar*s in accor*ance 4ith the establishe* national hu,an settle,ents plan prepare* b5 the )u,an Settle,ents Co,,ission: 3333 <:= Enter into contracts 4hene(er necessar5 un*er such ter,s an* con*itions as it ,a5 *ee, proper an* reasonable@ <l= AcAuire propert5 ri-hts an* interests, an* encu,ber or other4ise #/*.o*' )&' *!2' !* /) 2!6 #''2 !..+o.+/!)' <E,phasis supplie*+=

&etter <l= is e,phatic that the N)A can acAuire propert5 ri-hts an* interests an* encu,ber or other4ise *ispose of the, as it ,a5 *ee, appropriate+ The transfer of the reclai,e* lan*s b5 the National !o(ern,ent to the N)A for housin-, co,,ercial, an* in*ustrial purposes transfor,e* the, into patri,onial lan*s 4hich are of course o4ne* b5 the State in its pri(ate or proprietar5 capacit5+ Perforce, the N)A can sell the reclai,e* lan*s to an5 Gilipino citiFen or Aualifie* corporation+

S/9)& I**,'% ?&')&'+ )&' )+!"*4'+ o4 +'(3!/2'# 3!"#* )o RBI 8!* #o"' 56 .,53/( 5/##/"-

Petitioner also conten*s that there 4as no public bi**in- but an a4ar*in- of o4nership of sai* reclai,e* lan*s to RB + Public bi**in-, he sa5s, is reAuire* un*er Secs+ 9? an* 92 of CA .C. 4hich rea*:
Section 9?+ 7hene(er it is *eci*e* that lan*s co(ere* b5 this chapter are not nee*e* for public purposes, the $irector of &an*s shall as: the Secretar5 of A-riculture an* Co,,erce for authorit5 to *ispose of the sa,e+ Upon receipt of such authorit5, the $irector of &an*s shall -i(e notice b5 public a*(ertise,ent in the sa,e ,anner as in the case of leases or sales of a-ricultural public lan*, that the !o(ern,ent 4ill lease or sell, as the case ,a5 be, the lots or bloc:s specifie* in the a*(ertise,ent, for the purpose state* in the notice an* sub8ect to the con*itions specifie* in this chapter+ 3333 Section 92+ The lease or sale shall be ,a*e throu-h oral bi**in-@ an* a*8u*ication shall be ,a*e to the hi-hest bi**er+ )o4e(er, 4here an applicant has ,a*e i,pro(e,ents on the lan* b5 (irtue of a per,it issue*

to hi, b5 co,petent authorit5, the sale or lease shall be ,a*e b5 seale* bi**in- as prescribe* in section t4ent5#si3 of this Act, the pro(isions of 4hich shall be applie* 4hene(er applicable+ f all or part of the lots re,ain unlease* or unsol*, the $irector of &an*s shall fro, ti,e to ti,e announce in the Official !aFette or in an5 other ne4spapers of -eneral circulation, the lease of sale of those lots, if necessar5+

)e fin*s that the N)A an* RB (iolate* Secs+ 9? an* 92 of CA .C., as the reclai,e* lan*s 4ere con(e5e* to RB b5 ne-otiate* contract an* not b5 public bi**in- as reAuire* b5 la4+ This stan* is *e(oi* of ,erit+ There is no *oubt that respon*ent N)A con*ucte* a public bi**in- of the ri-ht to beco,e its 8oint (enture partner in the S,o:e5 Mountain Pro8ect+ Notices or n(itations to Bi* 4ere publishe* in the national *ailies on ;anuar5 0? an* 09, .>>0 an* Gebruar5 ., .C, .9, an* 0?, .>>0+ The bi**in- proper 4as *one b5 the Bi*s an* A4ar*s Co,,ittee <BAC= on Ma5 .E, .>>0+ On Au-ust ?., .>>0, the nter#A-enc5 Techco, ,a*e up of the N)A, PEA, $P7), PPA, $BP, an* $ENR opene* the bi*s an* e(aluate* the,, resultin- in the a4ar* of the contract to respon*ent RB on October 2, .>>0+ On March .>, .>>?, respon*ents N)A an* RB si-ne* the ;%A+ On Gebruar5 0?, .>>C, sai* ;%A 4as a,en*e* an* restate* into the AR;%A+ On Au-ust .., .>>C, the AR;%A 4as a-ain a,en*e*+ On Septe,ber 2, .>>C, the OP appro(e* the AR;%A an* the a,en*,ents to the AR;%A+ Gro, these factual settin-s, it cannot be -ainsai* that there 4as full co,pliance 4ith the la4s an* re-ulations -o(ernin- public bi**in-s in(ol(in- a ri-ht, concession, or propert5 of the -o(ern,ent+ Petitioner conce*es that he *oes not Auestion the public bi**in- on the ri-ht to be a 8oint (enture partner of the N)A, but the absence of bi**in- in the sale of alienable an* *isposable lan*s of public *o,ain pursuant to CA .C. as a,en*e*+

PetitionerMs theor5 is incorrect+ Secs+ 9? an* 92 of CA .C., as a,en*e*, are in point as the5 refer to -o(ern,ent sale b5 the $irector of &an*s of !3/'"!53' !"# #/*.o*!53' 3!"#* o4 .,53/( #o2!/"+ This is not present in the case at bar+ The lan*s reclai,e* b5 an* con(e5e* to the N)A are no lon-er lan*s of public *o,ain+ These lan*s beca,e proprietar5 lan*s or patri,onial properties of the State upon transfer of the titles o(er the reclai,e* lan*s to the N)A an* hence outsi*e the a,bit of CA .C.+ The N)A can therefore le-all5 transfer patri,onial lan* to RB or to an5 other intereste* Aualifie* bu5er 4ithout an5 bi**in- con*ucte* b5 the $irector of &an*s because the N)A, unli:e PEA, is a -o(ern,ent a-enc5 "o) tas:e* to sell lan*s of public *o,ain+ )ence, it can onl5 hol* patri,onial lan*s an* can *ispose of such lan*s b5 sale 4ithout nee* of public bi**in-+ Petitioner li:e4ise relies on Sec+ 2> of P$ .CC/ 4hich reAuires public bi**in- H4hen -o(ern,ent propert5 has beco,e unser(iceable for an5 cause or is no lon-er nee*e*+I t appears fro, the )an*boo: on Propert5 an* Suppl5 Mana-e,ent S5ste,, Chapter 9, that reclai,e* lan*s 4hich ha(e beco,e patri,onial properties of the State, 4hose titles are con(e5e* to -o(ern,ent a-encies li:e the N)A, 4hich it 4ill use for its pro8ects or pro-ra,s, are not 4ithin the a,bit of Sec+ 2>+ 7e Auote the *eter,ininfactors in the $isposal of Unser(iceable Propert5, thus:
$eter,inin- Gactors in the $isposal of Unser(iceable Propert5 Propert5, 4hich can no lon-er be repaire* or recon*itione*@ Propert5 4hose ,aintenance costs of repair ,ore than out4ei-h the benefits an* ser(ices that 4ill be *eri(e* fro, its continue* use@ Propert5 that has beco,e obsolete or out,o*e* because of chan-es in technolo-5@ Ser(iceable propert5 that has been ren*ere* unnecessar5 *ue to chan-e in the a-enc5Ms function or ,an*ate@

Unuse* supplies, ,aterials an* spare parts that 4ere procure* in e3cess of reAuire,ents@ an* Unuse* supplies an* ,aterials that Jha(eK beco,e *an-erous to use because of lon- stora-e or use of 4hich is *eter,ine* to be haFar*ous+E/

Reclai,e* lan*s cannot be consi*ere* unser(iceable properties+ The reclai,e* lan*s in Auestion are (er5 ,uch nee*e* b5 the N)A for the S,o:e5 Mountain Pro8ect because 4ithout it, then the pro8ects 4ill not be successfull5 i,ple,ente*+ Since the reclai,e* lan*s are not unser(iceable properties an* are (er5 ,uch nee*e* b5 N)A, then Sec+ 2> of P$ .CC/ *oes not appl5+ More i,portantl5, Sec+ 2> of P$ .CC/ cannot be applie* to patri,onial properties li:e reclai,e* lan*s transferre* to a -o(ern,ent a-enc5 li:e the N)A 4hich has entere* into a BOT contract 4ith a pri(ate fir,+ The reason is ob(ious+ f the patri,onial propert5 4ill be sub8ect to public bi**in- as the onl5 4a5 of *isposin- of sai* propert5, then Sec+ 9 of RA 9>/2 on the repa5,ent sche,e is al,ost i,possible or e3tre,el5 *ifficult to i,ple,ent consi*erin- the uncertaint5 of a 4innin- bi* *urinpublic auction+ Moreo(er, the repa5,ent sche,e of a BOT contract ,a5 be in the for, of non#,onetar5 pa5,ent li:e the -rant of a portion or percenta-e of reclai,e* lan*+ E(en if the BOT partner participates in the public bi**in-, there is no assurance that he 4ill 4in the bi* an* therefore the pa5,ent in :in* as a-ree* to b5 the parties cannot be perfor,e* or the 4innin- bi* priFe ,i-ht be belo4 the esti,ate* (aluation of the lan*+ The onl5 4a5 to har,oniFe Sec+ 2> of P$ .CC/ 4ith Sec+ 9 of RA 9>/2 is to consi*er Sec+ 2> of P$ .CC/ as inapplicable to BOT contracts in(ol(inpatri,onial lan*s+ The la4 *oes not inten* an5thin- i,possible < le/ non in#endi# ali&uid i possibile=+

S'0'")& I**,'% ?&')&'+ RBI, 5'/"- ! .+/0!)' (o+.o+!)/o", /* 5!++'# 56 )&' Co"*)/),)/o" )o !(7,/+' 3!"#* o4 .,53/( #o2!/"
Co,,ission on Au*it, Professional $e(elop,ent Center, )AN$BOOQ ON PROPERT" O SUPP&" MANA!EMENT S"STEM >.#>0 <011?=+
E/

Petitioner ,aintains that RB , bein- a pri(ate corporation, is e3pressl5 prohibite* b5 the .>E2 Constitution fro, acAuirin- lan*s of public *o,ain+ PetitionerMs proposition has no le-al ,oorin- for the follo4inreasons: .+ RA 9>/2 as a,en*e* b5 RA 22.E e3plicitl5 states that a

contractor can be pai* Ha portion as percenta-e of the reclai,e* lan*I sub8ect to the constitutional reAuire,ent that onl5 Gilipino citiFens or corporations 4ith at least 91N Gilipino eAuit5 can acAuire the sa,e+ t cannot be *enie* that RB is a pri(ate corporation, 4here Gilipino citiFens o4n at least 91N of the stoc:s+ Thus, the transfer to RB is (ali* an* constitutional+ 0+ 7hen Procla,ations Nos+ ?> an* C9/ 4ere issue*, inalienable lan*s co(ere* b5 sai* procla,ations 4ere con(erte* to alienable an* *isposable lan*s of public *o,ain+ 7hen the titles to the reclai,e* lan*s 4ere transferre* to the N)A, sai* alienable an* *isposable lan*s of public *o,ain 4ere auto,aticall5 classifie* as lan*s of the pri(ate *o,ain or patri,onial properties of the State because the N)A is an a-enc5 NOT tas:e* to *ispose of alienable or *isposable lan*s of public *o,ain+ The onl5 4a5 it can transfer the reclai,e* lan* in con8unction 4ith its pro8ects an* to attain its -oals is 4hen it is auto,aticall5 con(erte* to patri,onial properties of the State+ Bein- patri,onial or pri(ate properties of the State, then it has the po4er to sell the sa,e to an5 Aualifie* personDun*er the Constitution, Gilipino citiFens as pri(ate corporations, 91N of 4hich is o4ne* b5 Gilipino citiFens li:e RB + ?+ The N)A is an en*#user entit5 such that 4hen alienable lan*s The N)A is si,ilarl5 situate* as

of public *o,ain are transferre* to sai* a-enc5, the5 are auto,aticall5 classifie* as patri,onial properties+ BC$A 4hich 4as -rante* the authorit5 to *ispose of patri,onial lan*s of

the -o(ern,ent un*er RA 2002+ in Chavez v. P"A* thus:

The nature of the propert5 hol*in-s

con(e5e* to BC$A is eluci*ate* an* stresse* in the Ma5 9, 011? Resolution

BCDA /* !" '")/+'36 #/44'+'") -o0'+"2'") '")/)6. BCDA /* !,)&o+/='# 56 3!8 )o *'33 specific -o0'+"2'") 3!"#* )&!) &!0' 3o"- 5''" #'(3!+'# 56 .+'*/#'")/!3 .+o(3!2!)/o"* !* 2/3/)!+6 +'*'+0!)/o"* 4o+ ,*' 56 )&' #/44'+'") *'+0/('* o4 )&' !+2'# 4o+('* ,"#'+ )&' D'.!+)2'") o4 N!)/o"!3 D'4'"*'. BCDA>* 2!"#!)' /* *.'(/4/( !"# 3/2/)'# /" !+'!, 8&/3' PEA>* 2!"#!)' /* -'"'+!3 !"# "!)/o"!3. BCDA &o3#* -o0'+"2'") 3!"#* )&!) &!0' 5''" -+!")'# )o '"#-,*'+ -o0'+"2'") '")/)/'*FF)&' 2/3/)!+6 *'+0/('* o4 )&' !+2'# 4o+('*. I" (o")+!*), ,"#'+ E9'(,)/0' O+#'+ No. 525, PEA &o3#* )&' +'(3!/2'# .,53/( 3!"#*, "o) !* !" '"#-,*'+ '")/)6, 5,) !* )&' -o0'+"2'") !-'"(6 G.+/2!+/36 +'*.o"*/53' 4o+ /")'-+!)/"-, #/+'()/"-, !"# (oo+#/"!)/"- !33 +'(3!2!)/o" .+o1'()* 4o+ !"# o" 5'&!34 o4 )&' N!)/o"!3 Go0'+"2'")+I 3 3 3 7ell#settle* is the *octrine that public lan* -rante* to an en*#user -o(ern,ent a-enc5 for a specific public use ,a5 subseAuentl5 be 4ith*ra4n b5 Con-ress fro, public use an* *eclare* patri,onial propert5 to be sol* to pri(ate parties+ R.A. No. 7227 (+'!)/"- )&' BCDA /* ! 3!8 )&!) #'(3!+'* *.'(/4/( 2/3/)!+6 +'*'+0!)/o"* "o 3o"-'+ "''#'# 4o+ #'4'"*' o+ 2/3/)!+6 .,+.o*'* !"# +'(3!**/4/'* *,(& 3!"#* !* .!)+/2o"/!3 .+o.'+)6 4o+ *!3' )o .+/0!)' .!+)/'*. Go0'+"2'") o8"'# 3!"#*, !* 3o"- !* )&'6 !+' .!)+/2o"/!3 .+o.'+)6, (!" 5' *o3# )o .+/0!)' .!+)/'*, 8&')&'+ F/3/./"o (/)/='"* o+ 7,!3/4/'# .+/0!)' (o+.o+!)/o"*+ Thus, the so#calle* Griar &an*s acAuire* b5 the -o(ern,ent un*er Act No+ ..01 are patri,onial propert5 4hich e(en pri(ate corporations can acAuire b5 purchase+ &i:e4ise, reclai,e* alienable lan*s of the public *o,ain if sol* or transferre* to a public or ,unicipal corporation for a ,onetar5 consi*eration beco,e patri,onial propert5 in the han*s of the public or ,unicipal corporation+ Once con(erte* to patri,onial propert5, the lan* ,a5 be sol* b5 the public or ,unicipal corporation to pri(ate parties, 4hether Gilipino citiFens or Aualifie* pri(ate corporations+E9 <E,phasis supplie*+=

The fore-oin- Resolution ,a:es it clear that the SM$RP 4as a pro-ra, a*opte* b5 the !o(ern,ent un*er Republic Act No+ 9>/2 <An Act AuthoriFin- the Ginancin-, Construction, Operation an* Maintenance of nfrastructure Pro8ects b5 the Pri(ate Sector, an* Gor Other Purposes=, as a,en*e* b5 RA 22.E, 4hich is a special la4 si,ilar to RA 2002+ Moreo(er, since the i,ple,entation 4as assi-ne* to the N)A, an en*#user a-enc5 un*er P$ 2/2 an* RA 202>, the reclai,e* lan*s re-istere* un*er the

E9

!+R+ No+ .??0/1, Ma5 9, 011?, C1? SCRA ., ?.#?0+

N)A are auto,aticall5 classifie* as patri,onial lan*s rea*5 for *isposition to Aualifie* beneficiaries+ The fore-oin- reasons li:e4ise appl5 to the contention of petitioner that )CPT , bein- a pri(ate corporation, is *isAualifie* fro, bein- a transferee of public lan*+ 7hat 4as transferre* to )CPT is a .1#hectare lot 4hich is alrea*5 classifie* as patri,onial propert5 in the han*s of the N)A+ )CPT , bein- a Aualifie* corporation un*er the .>E2 Constitution, the transfer of the sub8ect lot to it is (ali* an* constitutional+ E/-&)& I**,'% ?&')&'+ +'*.o"#'")* (!" 5' (o2.'33'# )o #/*(3o*' !33 /"4o+2!)/o" +'3!)'# )o )&' S DRP

Petitioner asserts his ri-ht to infor,ation on all *ocu,ents such as contracts, reports, ,e,oran*a, an* the li:e relati(e to SM$RP+ Petitioner asserts that ,atters relati(e to the SM$RP ha(e not been *isclose* to the public li:e the current sta-e of the Pro8ect, the present financial capacit5 of RB , the co,plete list of in(estors in the asset pool, the e3act a,ount of in(est,ents in the asset pool an* other si,ilar i,portant infor,ation re-ar*in- the Pro8ect+ )e pra5s that respon*ents be co,pelle* to *isclose all infor,ation re-ar*in- the SM$RP an* furnish hi, 4ith ori-inals or at least certifie* true copies of all rele(ant *ocu,ents relatin- to the sai* pro8ect inclu*in-, but not li,ite* to, the ori-inal ;%A, AR;%A, AAR;%A, an* the Asset Pool A-ree,ent+ This relief ,ust be -rante*+ The ri-ht of the Gilipino people to infor,ation on ,atters of public concern is enshrine* in the .>E2 Constitution, thus:

ART C&E 3333 SEC+ 0E+ Sub8ect to reasonable con*itions prescribe* b5 la4, the State a*opts an* i,ple,ents a polic5 of full public *isclosure of all its transactions in(ol(in- public interest+ ART C&E SEC+ 2+ The ri-ht of the people to infor,ation on ,atters of public concern shall be reco-niFe*+ Access to official recor*s, an* to *ocu,ents, an* papers pertainin- to official acts, transactions, or *ecisions, as 4ell as to -o(ern,ent research *ata use* as basis for polic5 *e(elop,ent, shall be affor*e* the citiFen, sub8ect to such li,itations as ,a5 be pro(i*e* b5 la4+

n %al on#e v. Bel on#e* J!., this Court e3plicate* this 4a5:
JAKn essential ele,ent of these free*o,s is to :eep open a continuin- *ialo-ue or process of co,,unication bet4een the -o(ern,ent an* the people+ t is in the interest of the State that the channels for free political *iscussion be ,aintaine* to the en* that the -o(ern,ent ,a5 percei(e an* be responsi(e to the peopleMs 4ill+ "et, this open *ialo-ue can be effecti(e onl5 to the e3tent that the citiFenr5 is infor,e* an* thus able to for,ulate its 4ill intelli-entl5+ Onl5 4hen the participants in the *iscussion are a4are of the issues an* ha(e access to infor,ation relatinthereto can such bear fruit+E2

n P"A, this Court eluci*ate* the rationale behin* the ri-ht to infor,ation:
These t4in pro(isions of the Constitution see: to pro,ote transparenc5 in polic5#,a:in- an* in the operations of the -o(ern,ent, as 4ell as pro(i*e the people sufficient infor,ation to e3ercise effecti(el5 other constitutional ri-hts+ These t4in pro(isions are essential to the e3ercise of free*o, of e3pression+ f the -o(ern,ent *oes not *isclose its official acts, transactions an* *ecisions to citiFens, 4hate(er citiFens sa5, e(en if e3presse* 4ithout an5 restraint, 4ill be speculati(e an* a,ount to nothin-+ These t4in pro(isions are also essential to hol* public officials Hat all ti,es 3 3 3 accountable to the people,I for unless citiFens ha(e the proper infor,ation, the5 cannot hol* public officials accountable for an5thin-+ Ar,e* 4ith the ri-ht infor,ation, citiFens can participate in public *iscussions lea*in- to the for,ulation of -o(ern,ent policies an* their effecti(e i,ple,entation+ An infor,e* citiFenr5 is essential to the e3istence an* proper functionin- of an5 *e,ocrac5+EE
E2 EE

!+R+ No+ 2C>?1, Gebruar5 .?, .>E>, .21 SCRA 0/9, 09/+ Supra note /1, at .EC+

Sec+ 0E, Art+

co,pels the State an* its a-encies to full5 *isclose Hall Thus, the -o(ern,ent

of its transactions in(ol(in- public interest+I

a-encies, 4ithout nee* of *e,an* fro, an5one, ,ust brin- into public (ie4 all the steps an* ne-otiations lea*in- to the consu,,ation of the transaction an* the contents of the perfecte* contract+E> Such infor,ation ,ust pertain to H*efinite propositions of the -o(ern,ent,I ,eaninofficial reco,,en*ations or final positions reache* on the *ifferent ,atters sub8ect of ne-otiation+ The -o(ern,ent a-enc5, ho4e(er, nee* not *isclose Hintra# a-enc5 or inter#a-enc5 reco,,en*ations or co,,unications *urin- the sta-e 4hen co,,on assertions are still in the process of bein- for,ulate* or are in the e3plorator5 sta-e+I The li,itation also co(ers pri(ile-e* co,,unication li:e infor,ation on ,ilitar5 an* *iplo,atic secrets@ infor,ation affectin- national securit5@ infor,ation on in(esti-ations of cri,es b5 la4 enforce,ent a-encies before the prosecution of the accuse*@ infor,ation on forei-n relations, intelli-ence, an* other classifie* infor,ation+ t is unfortunate, ho4e(er, that after al,ost t4ent5 <01= 5ears fro, birth of the .>E2 Constitution, there is still no enablin- la4 that pro(i*es the ,echanics for the co,pulsor5 *ut5 of -o(ern,ent a-encies to *isclose infor,ation on -o(ern,ent transactions+ )opefull5, the *esire* enablinla4 4ill finall5 see the li-ht of *a5 if an* 4hen Con-ress *eci*es to appro(e the propose* HGree*o, of Access to nfor,ation Act+I n the ,eanti,e, it 4oul* suffice that -o(ern,ent a-encies post on their bulletin boar*s the *ocu,ents incorporatin- the infor,ation on the steps an* ne-otiations that pro*uce* the a-ree,ents an* the a-ree,ents the,sel(es, an* if finances per,it, to uploa* sai* infor,ation on their respecti(e 4ebsites for eas5 access b5 intereste* parties+ 7ithout an5 la4 or re-ulation -o(ernin- the ri-ht to *isclose infor,ation, the N)A or an5 of the respon*ents cannot be faulte* if the5 4ere not able to *isclose infor,ation relati(e to the SM$RP to the public in -eneral+
E>

*+ at .E/@ citin- % RECOR$ OG T)E CONST TUT ONA& COMM SS ON 0C#0/ <.>E9=+

The other aspect of the peopleMs ri-ht to :no4 apart fro, the *ut5 to *isclose is the *ut5 to allo4 access to infor,ation on ,atters of public concern un*er Sec+ 2, Art+ of the Constitution+ The -ate4a5 to infor,ation opens to the public the follo4in-: <.= official recor*s@ <0= *ocu,ents an* papers pertainin- to official acts, transactions, or *ecisions@ an* <?= -o(ern,ent research *ata use* as a basis for polic5 *e(elop,ent+ Thus, the *ut5 to *isclose infor,ation shoul* be *ifferentiate* fro, the *ut5 to per,it access to infor,ation+ There is no nee* to *e,an* fro, the -o(ern,ent a-enc5 *isclosure of infor,ation as this is ,an*ator5 un*er the Constitution@ failin- that, le-al re,e*ies are a(ailable+ On the other han*, the intereste* part5 ,ust first reAuest or e(en *e,an* that he be allo4e* access to *ocu,ents an* papers in the particular a-enc5+ A reAuest or *e,an* is reAuire*@ other4ise, the -o(ern,ent office or a-enc5 4ill not :no4 of the *esire of the intereste* part5 to -ain access to such papers an* 4hat papers are nee*e*+ The *ut5 to *isclose co(ers onl5 transactions in(ol(in- public interest, 4hile the *ut5 to allo4 access has a broa*er scope of infor,ation 4hich e,braces not onl5 transactions in(ol(in- public interest, but an5 ,atter containe* in official co,,unications an* public *ocu,ents of the -o(ern,ent a-enc5+ 7e fin* that althou-h petitioner *i* not ,a:e an5 *e,an* on the N)A to allo4 access to infor,ation, 4e treat the petition as a 4ritten reAuest or *e,an*+ 7e or*er the N)A to allo4 petitioner access to its official recor*s, *ocu,ents, an* papers relatin- to official acts, transactions, an* *ecisions that are rele(ant to the sai* ;%A an* subseAuent a-ree,ents relati(e to the SM$RP+ N/")& I**,'% ?&')&'+ )&' o.'+!)/0' 4!() #o()+/"' !..3/'* )o )&' /"*)!") .')/)/o"

Petitioner postulates that the Hoperati(e factI *octrine is inapplicable to the present case because it is an eAuitable *octrine 4hich coul* not be use* to countenance an ineAuitable result that is contrar5 to its proper office+ On the other han*, the petitioner Solicitor !eneral ar-ues that the e3istence of the (arious a-ree,ents i,ple,entin- the SM$RP is an operati(e fact that can no lon-er be *isturbe* or si,pl5 i-nore*, citin- Rie#a v. People o) #he Philippines.>1 The ar-u,ent of the Solicitor !eneral is ,eritorious+ The Hoperati(e factI *octrine is e,bo*ie* in .e Agbayani v. Cou!# o) Appeals, 4herein it is state* that a le-islati(e or e3ecuti(e act, prior to its bein- *eclare* as unconstitutional b5 the courts, is (ali* an* ,ust be co,plie* 4ith, thus:
As the ne4 Ci(il Co*e puts it: H7hen the courts *eclare a la4 to be inconsistent 4ith the Constitution, the for,er shall be (oi* an* the latter shall -o(ern+ A*,inistrati(e or e3ecuti(e acts, or*ers an* re-ulations shall be (ali* onl5 4hen the5 are not contrar5 to the la4s of the Constitution+I t is un*erstan*able 4h5 it shoul* be so, the Constitution bein- supre,e an* para,ount+ An5 le-islati(e or e3ecuti(e act contrar5 to its ter,s cannot sur(i(e+ Such a (ie4 has support in lo-ic an* possesses the ,erit of si,plicit5+ t ,a5 not ho4e(er be sufficientl5 realistic+ I) #o'* "o) !#2/) o4 #o,5) )&!) .+/o+ )o )&' #'(3!+!)/o" o4 ",33/)6 *,(& (&!33'"-'# 3'-/*3!)/0' o+ '9'(,)/0' !() 2,*) &!0' 5''" /" 4o+(' !"# &!# )o 5' (o2.3/'# 8/)&. This is so as until after the 8u*iciar5, in an appropriate case, *eclares its in(ali*it5, it is entitle* to obe*ience an* respect+ Parties ,a5 ha(e acte* un*er it an* ,a5 ha(e chan-e* their positions+ 7hat coul* be ,ore fittin- than that in a subseAuent liti-ation re-ar* be ha* to 4hat has been *one 4hile such le-islati(e or e3ecuti(e act 4as in operation an* presu,e* to be (ali* in all respects+ t is no4 accepte* as a *octrine that prior to its bein- nullifie*, its e3istence as a fact ,ust be rec:one* 4ith+ This is ,erel5 to reflect a4areness that precisel5 because the 8u*iciar5 is the -o(ern,ental or-an 4hich has the final sa5 on 4hether or not a le-islati(e or e3ecuti(e ,easure is (ali*, a perio* of ti,e ,a5 ha(e elapse* before it can e3ercise the po4er of 8u*icial re(ie4 that ,a5 lea* to a *eclaration of nullit5+ t 4oul* be to *epri(e the la4 of its Aualit5 of fairness an* 8ustice then, if there be no reco-nition of 4hat ha* transpire* prior to such a*8u*ication+

>1

!+R+ No+ .C2E.2, Au-ust .0, 011C, C?9 SCRA 02?, 0>.#0>0+

n the lan-ua-e of an A,erican Supre,e Court *ecision % GT&' !(),!3 '9/*)'"(' o4 ! *)!),)', .+/o+ )o *,(& ! #')'+2/"!)/o" Ho4 ,"(o"*)/),)/o"!3/)6I, /* !" o.'+!)/0' 4!() !"# 2!6 &!0' (o"*'7,'"('* 8&/(& (!""o) 1,*)36 5' /-"o+'#. T&' .!*) (!""o) !38!6* 5' '+!*'# 56 ! "'8 1,#/(/!3 #'(3!+!)/o". The effect of the subseAuent rulin- as to in(ali*it5 ,a5 ha(e to be consi*ere* in (arious aspects, 4ith respect to particular relations, in*i(i*ual an* corporate, an* particular con*uct, pri(ate an* official+I This lan-ua-e has been Auote* 4ith appro(al in a resolution in Araneta (+ )ill an* the *ecision in Manila Motor Co+, nc+ (+ Glores+ An e(en ,ore recent instance is the opinion of ;ustice 'al*i(ar spea:in- for the Court in Gernan*eF (+ Cuer(a an* Co+>. <E,phasis supplie*+=

This *octrine 4as reiterate* in the ,ore recent case of Ci#y o) Maka#i v. Civil $e!vice Co ission, 4herein 4e rule* that:

Moreo(er, 4e certainl5 cannot nullif5 the Cit5 !o(ern,entMs or*er of suspension, as 4e ha(e no reason to *o so, ,uch less retroacti(el5 appl5 such nullification to *epri(e pri(ate respon*ent of a co,pellin- an* (ali* reason for not filin- the lea(e application+ Fo+ !* 8' &!0' &'3#, ! 0o/# !() )&o,-& /" 3!8 ! 2'+' *(+!. o4 .!.'+ "o"')&'3'** (o"4'+* 3'-/)/2!(6 ,.o" .!*) !()* o+ o2/**/o"* #o"' /" +'3/!"(' )&'+'o4. Co"*'7,'")36, )&' '9/*)'"(' o4 ! *)!),)' o+ '9'(,)/0' o+#'+ .+/o+ )o /)* 5'/"- !#1,#-'# 0o/# /* !" o.'+!)/0' 4!() )o 8&/(& 3'-!3 (o"*'7,'"('* !+' !))!(&'#. t 4oul* in*ee* be -hastl5 unfair to pre(ent pri(ate respon*ent fro, rel5in- upon the or*er of suspension in lieu of a for,al lea(e application+>0 <E,phasis supplie*+=

The principle 4as further e3plicate* in the case of Rie#a v. People o) #he Philippines, thus:

n si,ilar situations in the past this Court ha* ta:en the pra-,atic an* realistic course set forth in Chicot Count5 $raina-e $istrict (s+ Ba3ter Ban: to 4it: The courts belo4 ha(e procee*e* on the theor5 that the Act of Con-ress, ha(in- been foun* to be unconstitutional, 4as not a la4@ that it 4as inoperati(e, conferrin- no ri-hts an* i,posin- no *uties, an* hence affor*in- no basis for the challen-e* *ecree+ 3 3 3 t is Auite clear, ho4e(er, that such broa* state,ents as to the effect of a *eter,ination of unconstitutionalit5 ,ust be ta:en 4ith Aualifications+ The actual e3istence of a statute, prior to Jthe *eter,ination of its in(ali*it5K, is an operati(e fact an* ,a5 ha(e conseAuences 4hich cannot 8ustl5 be i-nore*+ The past cannot al4a5s be erase* b5 a ne4 8u*icial *eclaration+ The effect of the subseAuent rulin- as to in(ali*it5 ,a5 ha(e to be consi*ere* in
>. >0

No+ &#0?.02, April 0>, .>2., ?E SCRA C0>, C?C#C?/+ !+R+ No+ .?.?>0, Gebruar5 9, 0110, ?29 SCRA 0CE, 0/2+

(arious aspects B4ith respect to particular con*uct, pri(ate an* official+ Questions of ri-hts clai,e* to ha(e beco,e (este*, of status, of prior *eter,inations *ee,e* to ha(e finalit5 an* acte* upon accor*in-l5, of public polic5 in the li-ht of the nature both of the statute an* of its pre(ious application, *e,an* e3a,ination+ These Auestions are a,on- the ,ost *ifficult of those 4hich ha(e en-a-e* the attention of courts, state an* fe*eral, an* it is ,anifest fro, nu,erous *ecisions that an all#inclusi(e state,ent of a principle of absolute retroacti(e in(ali*it5 cannot be 8ustifie*+

n the Ma5 9, 011? Resolution in Chavez v. P"A,>? 4e rule* that .e Agbayani>C is not applicable to the case consi*erin- that the pre(ailin- la4 *i* not authoriFe pri(ate corporations fro, o4nin- lan*+ The pre(ailin- la4 at the ti,e 4as the .>?/ Constitution as no statute *ealt 4ith the sa,e issue+ n the instant case, RA 9>/2 4as the pre(ailin- la4 at the ti,e that the 8oint (enture a-ree,ent 4as si-ne*+ RA 9>/2, entitle* HAn Act AuthoriFin- The Ginancin-, Construction, Operation An* Maintenance Of nfrastructure Pro8ects B5 The Pri(ate Sector An* Gor Other Purposes,I 4hich 4as passe* b5 Con-ress on ;ul5 0C, .>E>, allo4s repa5,ent to the pri(ate contractor of reclai,e* lan*s+>/ Such la4 4as relie* upon b5 respon*ents, alon- 4ith the abo(e#,entione* e3ecuti(e issuances in pushinthrou-h 4ith the Pro8ect+ The e3istence of such la4 an* issuances is an
>? >C >/

Supra note E9, at 09+ Supra note >.+ RA 9>/2, Sec+ 9 pro(i*es:

Section 9+ Repa5,ent Sche,e+DGor the financin-, construction, operation, an* ,aintenance of an5 infrastructure pro8ect un*erta:en pursuant to the pro(isions of this Act, the constructor shall be entitle* to a reasonable return of its in(est,ent an* operatin- an* ,aintenance costs in accor*ance 4ith its bi* proposal as accepte* b5 the concerne* contractininfrastructure a-enc5 or local -o(ern,ent unit an* incorporate* in the contractMs ter,s an* con*itions+ n the case of a buil*#operate#an*#transfer arran-e,ent, this repa5,ent sche,e is to be affecte* b5 authoriFin- the contractor to char-e for the use of the pro8ect facilit5 not e3cee*in- those propose* in the bi* an* incorporate* in the contract: P!ovided, That the -o(ern,ent infrastructure a-enc5 or local -o(ern,ent unit concerne* shall appro(e the fairness an* eAuit5 of the tolls, fees, rentals an* char-es e3cept in case of tolls for national hi-h4a5s, roa*s, bri*-es an* public thorou-hfares 4hich shall be appro(e* b5 the Toll Re-ulator5 Boar*: P!ovided, )u!#he!, That the i,position an* collection of tolls, fees, rentals an* char-es shall be for a fi3e* ter, as propose* in the bi* an* incorporate* in the contract but in no case shall this ter, e3cee* fift5 </1= 5ears: P!ovided* )inally* That *urin- the lifeti,e of the franchise, the contractor shall un*erta:e the necessar5 ,aintenance an* repair of the facilit5 in accor*ance 4ith stan*ar*s prescribe* in the bi**in- *ocu,ents an* in the contract+ n the case of a buil*#an*#transfer arran-e,ents, the repa5,ent sche,e is to be affecte* throu-h a,ortiFation pa5,ents b5 the -o(ern,ent unit concerne* to the contractor accor*in- to the sche,e propose* in the bi* an* incorporate* in the contract+ n the case of lan* recla,ation or the buil*in- of in*ustrial estates, the repa5,ent sche,e ,a5 consist of the -rant of a portion of percenta-e of the reclai,e* lan* or in*ustrial estate built, sub8ect to the constitutional reAuire,ents 4ith respect to the o4nership of lan*s+

Hoperati(e factI to 4hich le-al conseAuences ha(e attache*+ This Court is constraine* to -i(e le-al effect to the acts *one in consonance 4ith such e3ecuti(e an* le-islati(e acts@ to *o other4ise 4oul* 4or: patent in8ustice on respon*ents+ Gurther, in the Ma5 9, 011? Resolution in Chavez v. P"A, 4e rule* that in certain cases, the transfer of lan*, althou-h ille-al or unconstitutional, 4ill not be in(ali*ate* on consi*erations of eAuit5 an* social 8ustice+ )o4e(er, in that case, 4e *i* not appl5 the sa,e consi*erin- that PEA, respon*ent in sai* case, 4as not entitle* to eAuit5 principles there bein- ba* faith on its part, thus:
There are, ,oreo(er, special circu,stances that *isAualif5 A,ari fro, in(o:in- eAuit5 principles+ A,ari cannot clai, -oo* faith because e(en before A,ari si-ne* the A,en*e* ;%A on March ?1, .>>>, petitioner ha* alrea*5 file* the instant case on April 02, .>>E Auestioninprecisel5 the Aualification of A,ari to acAuire the Gree*o, slan*s+ E(en before the filin- of this petition, t4o Senate Co,,ittees ha* alrea*5 appro(e* on Septe,ber .9, .>>2 Senate Co,,ittee Report No+ /91+ This Report conclu*e*, after a 4ell#publiciFe* in(esti-ation into PEAMs sale of the Gree*o, slan*s to A,ari, that the Gree*o, slan*s are inalienable lan*s of the public *o,ain+ Thus, A,ari si-ne* the A,en*e* ;%A :no4in- an* assu,in- all the atten*ant ris:s, inclu*in- the annul,ent of the A,en*e* ;%A+>9

Such indicia of ba* faith are not present in the instant case+ 7hen the rulin- in P"A 4as ren*ere* b5 this Court on ;ul5 >, 0110, the ;%As 4ere all e3ecute*+ Gurther,ore, 4hen petitioner file* the instant case a-ainst respon*ents on Au-ust /, 011C, the ;%As 4ere alrea*5 ter,inate* b5 (irtue of the MOA bet4een the N)A an* RB + The respon*ents ha* no reason to thin: that their a-ree,ents 4ere unconstitutional or e(en Auestionable, as in fact, the concurrent acts of the e3ecuti(e *epart,ent lent (ali*it5 to the i,ple,entation of the Pro8ect+ The SM$RP a-ree,ents ha(e pro*uce* (este* ri-hts in fa(or of the slu, *4ellers, the bu5ers of reclai,e* lan* 4ho 4ere issue* titles o(er sai* lan*, an* the a-encies an* in(estors 4ho ,a*e in(est,ents in the pro8ect or 4ho bou-ht SMPPCs+ These properties an*
>9

Supra note E9, at 0>#?1+

ri-hts cannot be *isturbe* or Auestione* after the passa-e of aroun* ten <.1= 5ears fro, the start of the SM$RP i,ple,entation+ E(i*entl5, the Hoperati(e factI principle has set in+ The titles to the lan*s in the han*s of the bu5ers can no lon-er be in(ali*ate*+ T&' Co,+)>* D/*.o*/)/o"* Base* on the issues raise* in this petition, 4e fin* that the March .>, .>>? ;%A bet4een N)A an* RB an* the SM$RP e,bo*ie* in the ;%A, the subseAuent a,en*,ents to the ;%A an* all other a-ree,ents si-ne* an* e3ecute* in relation to it, inclu*in-, but not li,ite* to, the Septe,ber 09, .>>C S,o:e5 Mountain Asset Pool A-ree,ent an* the a-ree,ent on Phase of the Pro8ect as 4ell as all other transactions 4hich e,anate* fro, the Pro8ect, ha(e been sho4n to be (ali*, le-al, an* constitutional+ Phase been struc: *o4n b5 the Clean Air Act+ 7ith re-ar* to the pra5er for prohibition, en8oinin- respon*ents particularl5 respon*ent N)A fro, further i,ple,entin- an*6or enforcinthe sai* Pro8ect an* other a-ree,ents relate* to it, an* fro, further *eri(inan*6or en8o5in- an5 ri-hts, pri(ile-es an* interest fro, the Pro8ect, 4e fin* the sa,e pra5er ,eritless+ Sec+ 0 of Rule 9/ of the .>>2 Rules of Ci(il Proce*ure pro(i*es:
Sec+ 0+ Pe#i#ion )o! p!ohibi#ion+D7hen the procee*in-s of an5 tribunal, corporation, boar*, officer or person, 4hether e3ercisin- 8u*icial, Auasi#8u*icial or ,inisterial functions, are 4ithout or in e3cess of its or his 8uris*iction, or 4ith -ra(e abuse of *iscretion a,ountin- to lac: or e3cess of 8uris*iction, an* there is no appeal or an5 other plain, spee*5, an* a*eAuate re,e*5 in the or*inar5 course of la4, a person a--rie(e* thereb5 ,a5 file a (erifie* petition in the proper court, alle-in- the facts 4ith certaint5 an* pra5in- that 8u*-,ent be ren*ere* co,,an*in- the respon*ent to *esist fro, further procee*in-s in the action or ,atter specifie* therein, or other4ise -rantin- such inci*ental reliefs as la4 an* 8ustice ,a5 reAuire+

has

t has not been sho4n that the N)A e3ercise* 8u*icial or Auasi# 8u*icial functions in relation to the SM$RP an* the a-ree,ents relati(e to it+

&i:e4ise, it has not been sho4n 4hat ,inisterial functions the N)A has 4ith re-ar* to the SM$RP+ A ,inisterial *ut5 is one 4hich is so clear an* specific as to lea(e no roo, for the e3ercise of *iscretion in its perfor,ance+ t is a *ut5 4hich an officer perfor,s in a -i(en state of facts in a prescribe* ,anner in obe*ience to the ,an*ate of le-al authorit5, 4ithout re-ar* to the e3ercise of his6her o4n 8u*-,ent upon the propriet5 of the act *one+>2 7hate(er is left to be *one in relation to the Au-ust 02, 011? MOA, ter,inatin- the ;%A an* other relate* a-ree,ents, certainl5 *oes not in(ol(e ,inisterial functions of the N)A but instea* reAuires e3ercise of 8u*-,ent+ n fact, te, No+ C of the MOA ter,inatin- the ;%As pro(i*es for (ali*ation of the *e(eloperMs <RB Ms= clai,s arisin- fro, the ter,ination of the SM$RP throu-h the (arious -o(ern,ent a-encies+>E reAuires the e3ercise of *iscretion+ n a**ition, prohibition *oes not lie a-ainst the N)A in (ie4 of petitionerMs failure to a(ail an* e3haust all a*,inistrati(e re,e*ies+ Clear is the rule that prohibition is onl5 a(ailable 4hen there is no a*eAuate re,e*5 in the or*inar5 course of la4+ More i,portantl5, prohibition *oes not lie to restrain an act 4hich is alrea*5 a )ai# acco pli. The Hoperati(e factI *octrine protectin- (este* ri-hts bars the -rant of the 4rit of prohibition to the case at bar+ t shoul* be re,e,bere* that petitioner 4as the Solicitor !eneral at the ti,e SM$RP 4as for,ulate* an* i,ple,ente*+ the Pro8ect ha* passe*+ )e ha* the opportunit5 to Auestion the SM$RP an* the a-ree,ents on it, but he *i* not+ The ,o,ent to challen-e Such (ali*ation

>2
>E

$y aco v. 0on. A&uino* e#c., .19 Phil+ ..?1, ..?/ <.>91=+ Rollo, p+ E99+

On the pra5er for a 4rit of ,an*a,us, petitioner as:s the Court to co,pel respon*ents to *isclose all *ocu,ents an* infor,ation relatin- to the pro8ect, inclu*in-, but not li,ite* to, an5 subseAuent a-ree,ents 4ith respect to the *ifferent phases of the Pro8ect, the re(isions of the ori-inal plan, the a**itional 4or:s incurre* on the Pro8ect, the current financial con*ition of respon*ent RB , an* the transactions ,a*e 4ith respect to the pro8ect+ 7e earlier rule* that petitioner 4ill be allo4e* access to official recor*s relati(e to the SM$RP+ That 4oul* be a*eAuate relief to satisf5 petitionerMs ri-ht to the infor,ation -ate4a5+ ?HEREFORE, the petition is PARTIALLY GRANTED+ The pra5er for a 4rit of prohibition is DENIED for lac: of ,erit+ The pra5er for a 4rit of ,an*a,us is GRANTED+ Respon*ent N)A is or*ere* to allo4 access to petitioner to all public *ocu,ents an* official recor*s relati(e to the SM$RPD/"(3,#/"-, but not li,ite* to, the March .>, .>>? ;%A bet4een the N)A an* RB an* subseAuent a-ree,ents relate* to the ;%A, the re(isions o(er the ori-inal plan, an* the a**itional 4or:s incurre* on an* the transactions ,a*e 4ith respect to the Pro8ect+ No costs+ SO ORDERED.

PRESBITERO $. VELASCO, $R. Associate ;ustice

7E CONCUR% REYNATO S. PUNO Chief ;ustice

LEONARDO A. JUISU BING Associate ;ustice

CONSUELO YNARES-SANTIAGO Associate ;ustice

ANGELINA SANDOVAL-GUTIERREZ Associate ;ustice

ANTONIO T. CARPIO Associate ;ustice

A. ALICIA AUSTRIA- ARTINEZ Associate ;ustice ;ustice

RENATO C. CORONA Associate

CONCHITA CARPIO ORALES Associate ;ustice

ADOLFO S. AZCUNA Associate ;ustice

DANTE O. TINGA Associate ;ustice

INITA V. CHICO-NAZARIO Associate ;ustice

CANCIO C. GARCIA Associate ;ustice

ANTONIO EDUARDO B. NACHURA Associate ;ustice

RUBEN T. REYES Associate ;ustice

CERTIFICATION Pursuant to Section .?, Article % of the Constitution, it is hereb5 certifie* that the conclusions in the abo(e $ecision 4ere reache* in consultation before the case 4as assi-ne* to the 4riter of the opinion of the Court+

REYNATO S. PUNO Chief ;ustice