CHAVEZ V.

PUBLIC ESTATES AUTHORITY

384 SCRA 152

FACTS:
President Marcos through a presidential decree created PEA, which was
tasked with the development, improvement, and acquisition, lease, and sale of all kinds of lands.
The then president also transferred to PEA the foreshore and offshore lands of Manila Bay under the
Manila-Cavite Coastal Road and Reclamation Project.

Thereafter, PEA was granted patent to the reclaimed areas of land and then, years later, PEA
entered into a JVA with AMARI for the development
of the Freedom Islands. These two entered into a joint venture in the absence of any public
bidding.

Later, a privilege speech was given by Senator President Maceda denouncing the JVA as the
grandmother of all scams. An investigation was conducted and it was concluded that the lands that PEA
was conveying to AMARI were lands of the public domain; the certificates of title over the
Freedom Islands were void; and the JVA itself was illegal. This prompted Ramos to form an investigatory
committee on the legality of the JVA.

Petitioner now comes and contends that the government stands to lose
billions by the conveyance or sale of the reclaimed areas to AMARI. He also asked for the full
disclosure of the renegotiations happening between the parties.

ISSUE:
W/N stipulations in the amended JVA for the transfer to AMARI of the lands, reclaimed or to be
reclaimed, violate the Constitution.

HELD
The ownership of lands reclaimed from foreshore and submerged areas is rooted in the Regalian
doctrine, which holds that the State owns all lands and waters of the public domain.

The 1987 Constitution recognizes the Regalian doctrine. It declares that all
natural resources are owned by the State and except for alienable
agricultural lands of the public domain, natural resources cannot be alienated.

The Amended JVA covers a reclamation area of 750 hectares. Only 157.84 hectares of the 750 hectare
reclamation project have been reclaimed, and the rest of the area are still submerged areas forming part
of Manila Bay. Further, it is provided that AMARI will reimburse the actual costs in reclaiming the
areas of land and it will shoulder the other reclamation costs to be incurred.
The foreshore and submerged areas of Manila Bay are part of the lands of
the public domain, waters and other natural resources and consequently owned by the State. As
such, foreshore and submerged areas shall not be
alienable unless they are classified as agricultural lands of the public domain. The mere
reclamation of these areas by the PEA doesnt convert
these inalienable natural resources of the State into alienable and disposable lands of the public
domain. There must be a law or presidential
proclamation officially classifying these reclaimed lands as alienable and
disposable if the law has reserved them for some public or quasi-public use.