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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 397
WHEREAS, the Construction and Development
Corporation of the Philippines (CDCP), now Philippine National
Construction Corporation (PNCC), entered into a contract with the
Republic of the Philippines represented by the then Department of
Public Highways (DPH), now Department of Public Works and Highways
(DPWH) dated 20 November 1973 for the construction of the Manila-Cavite
Coastal Road and the reclamation of some portions of the foreshore and
off-shore lands along Manila Bay at PNCC's own expense, otherwise known
as the Manila-Cavite Coastal Road and Reclamation project
(MCCRRP);
WHEREAS, under the contract, the compensation for PNCC on the project
was in the form of reclaimed lands with an area not exceeding 50% of
the total reclaimed lands covered by Certificates of Pledge to be
issued by DPWH;
WHEREAS, pursuant to the aforesaid contract, the lands ceded to PNCC
are (1) the lands known as the Financial Center Area (FCA) consisting
of 56.3212 hectares; (2) portion of the reclaimed lands known as the
Central Business Park I (CBP-1) consisting of 77.1538 hectares and (3)
all of the reclaimed lands known as the First Neighborhood Unit (FNU)
consisting of 172.5299 hectares;
WHEREAS, pursuant to Presidential Decree No. 1084, the Public Estates
Authority (PEA) was mandated to reclaim lands, including foreshore and
submerged areas, and to acquire reclaimed lands for the purpose of
developing and taking charge of their disposition;
WHEREAS, pursuant to Presidential Decree No. 1085, the ownership over
the lands reclaimed in the foreshore and offshore area under the MCCRRP
were to be transferred, conveyed and assigned to PEA provided that the
rights and interests of PNCC pursuant to the aforesaid contract should
be recognized and respected;
WHEREAS, in a Memorandum of Agreement (MOA) dated 29 December 1981,
PNCC ceded and transferred all its rights, title, interest and
participation over those reclaimed areas under the MCCRRP which were
not yet transferred or disposed as of 30 December 1981, in favor of PEA;
WHEREAS, the reclaimed lands ceded consist of an area approximately
99,473 sq. m. in the FCA covered by Land Pledge No. 5 and approximately
3,382,888 sq. m. of reclaimed lands of varying elevations above mean
low water level located outside the FCA and the FNU and that PEA agreed
to pay PNCC the sum of P1,517,959,000.00;
WHEREAS, PNCC still has unsettled claims against PEA arising from the
MCCRRP contract and the MOA dated 29 December 1981;
WHEREAS, Memorandum Order No. 293, series of 1995 created an
Arbitration Committee composed of representatives from the Departments
of Finance, Justice, Public Works and Highways and Trade and Industry
to resolve the perceived conflicting interests between the PEA and PNCC
insofar as the construction of roads under a Build-Operate-Transfer
scheme and other issues on capital structure, asset transfers, and
financial liabilities are concerned;
WHEREAS, after due investigation and hearing, the Committee reported
that the claims of PNCC are well founded;
WHEREAS, PNCC's indebtedness to the various government financial
institutions were transferred to the National Government (NG) through
the Committee on Privatization (COP)/Asset Privatization Trust (APT)
and the Bureau of Treasury pursuant to Proclamation No. 50 and
Administrative Order No. 64;
WHEREAS, PNCC is one of the corporations slated to be privatized and
such measure can only be achieved if its Balance Sheet can be relieved
of huge financial obligations with the NG;
WHEREAS, PNCC, with the concurrence of PEA, is willing to settle its
aforesaid obligations by applying its valid claims and verified
receivables from PEA.
NOW, THEREFORE, I, FIDEL V . RAMOS, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby
order:
Section 1.
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Sec. 8.
Sec. 9.
DONE in the City of Manila,
this 13th day of May 1998, in the year of Our Lord, Nineteen Hundred
and Ninety-eight.
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