DENR cancels contract with Masungi Georeserve developer

Metro Manila, Philippines - The government has canceled its supplemental agreement with a housing contractor, which developed the Masungi Georeserve east of Metro Manila.

In a news conference on Friday, March 7, the Department of Environment and Natural Resources (DENR) announced the cancellation of the 2002 supplemental agreement with Blue Star Construction and Development Corp. due to “illegality, failure to go through a bidding process, and failure to execute.”

“Dito sa ating sulat sa kanila, binibigyan natin sila ng 15 days upon receipt of the letter of cancellation for them to vacate. So titignan natin, of course, mayroon naman mga available legal remedies in this situation,” Environment Assistant Secretary Norlito Eneran said.

[Translation: In our letter, we are giving Blue Star 15 days upon receipt of the letter of cancellation for them to vacate. Of course, they have available legal remedies in this situation.]

Eneran said Blue Star’s violations were:

+ imposition of fees not provided for in the Masungi Rock Eco-Tourism Plan;

+ construction of various facilities inside the park without necessary permits and clearances;

+ fencing a portion of the area

+ restrictive access to authorized DENR officials; and

+ non-completion of project within the stipulated period

In 1997, the DENR entered into a joint venture agreement with Blue Star for the “survey, design construction, development, and marketing” of the “Garden Cottages” project.

The 5,000-unit government housing project was on a 130-hectare site in Tanay, Rizal.

In 2002, a supplemental agreement was signed to expand the project by 300 hectares. In this area, known as the Lot 10 property, the Blue Star developed the Masungi Georeserve, a conservation area nestled in the Sierra Madre mountain range, known for its hikes and day trips in its discovery trail.

The Masungi Georeserve Foundation, Inc. (MGFI) said Lot 10 is home to fragile limestone formations and part of several protected and conserved areas.

“‘Yung 1997 joint venture agreement, as of now, walang housing units doon. Kung meron man, mga model units ‘yun. Pero in terms of distributing it to the beneficiaries, wala pong ganun,” Eneran said.

“As to penalties, we're still verifying and reviewing the other contracts. Kaya naka-reserve kami dun sa civil, criminal aspects, dependent dun sa makikita namin sa evaluation,” he added.

[Translation: As of now, there are no housing units for the 1997 joint venture agreement, only model units. No units were distributed to the beneficiaries. As to penalties, we’re still verifying and reviewing the other contracts. That’s why we are reserved to civil and criminal aspects, which are dependent on our evaluation.]

In response, the MGFI said it is “confident of the legal remedies available to us to stay the order, continue our work, and save Masungi.” It added that it has yet to receive DENR’s letter.

“The [DENR] has chosen to go after those protecting our forests instead of those destroying them,” the foundation said in a statement.

“For over two decades, Masungi and Blue Star have been on the frontlines, defending our forests against land grabbers, illegal quarries, and powerful vested interests,” it added.

The MGFI said the DENR has “stubbornly refused to carry out its contractual obligation to clear the area of large-scale illegal occupants, liens, and encumbrances, causing delays to the project and significant injury to its private sector partner.”

On the other hand, the DENR said “no one has the monopoly” in environmental protection and conservation.

“Ang sinasabi lang po ng DENR [What the DENR is saying] is that no one is above the law,” Eneran said.

He also said the DENR will further investigate “kung sino 'yung mga nagkamali dito [who are at fault here],” including “our own people.” He said cases have been filed with the Office of the Ombudsman.

The MGFI has another contract with the DENR — the 2017 memorandum agreement that grants a “perpetual land trust for conservation” covering 2,700 hectares within the Upper Marikina Watershed and the Kaliwa Watershed.

The DENR previously said it was “void from the very beginning.”

The MGFI has received multiple awards for its conservation and reforestation efforts in the georeserve.