Gov’t acts vs illegal reclamation

BY FELIPE F. SALVOSA II, BusinessWorld Sub-Editor, and MARITES S. VILLAMOR, Cebu Bureau Chief The government will soon begin a crackdown on illegal reclamation projects nationwide with the lapse of a special registration scheme in which the state reclamation authority gave private individuals, corporations, and local governments with such projects but sans permits until February 28 to apply for "regularization." The Philippine Reclamation Authority, the former Public Estates Authority, is drawing up a final list of projects to be seized in favor of the national government. Reclamation officials said the list could be ready by next month. A total of 611 reclamation sites was previously identified by the agency and "more than 50%" of these were able to beat the deadline and are in various stages of complying with reclamation rules, said Josefina L. Castro, assistant general manager for project development and evaluation. The special registration scheme is being carried out by the agency under a 2005 administrative order in which the deadline had been extended twice. The order pointed to the "proliferation of unauthorized or illegal reclamation projects in the country" and claimed these projects have grown into an "alarming magnitude." The agency said it wanted to "prevent any adverse impact on the environment, to integrate the newly reclaimed lands into existing land uses and to rationalize the land values." Ms. Castro said various entities have been illegally reclaiming land in coastal towns and cities such as Davao, Tacloban, San Carlos in Negros Occidental, and Alaminos in Pangasinan, as well as in the Ilocos provinces and Masbate. The Philippine coastline stretches to 36,289 kilometers, and 832 or more than half of all towns and cities lie along the coasts. Individuals or companies are being required to pay as much as P134,400 in filing and processing fees, and after a survey, a penalty of 5% of the approved reclamation cost. Those who registered under the scheme are entitled to "reimbursement" of the reclamation cost, the theory being that the state owns all land reclaimed from the sea as stated in the Constitution. The title will be in the name of the government. Reimbursement may be in the form of a portion the reclaimed land, a share of the proceeds if the land is to be sold through public bidding, or through a lease contract with the reclamation agency over an equivalent period. Lease payments will be applied against the amount of reimbursement. Based on constitutional restrictions and following a 2003 Supreme Court ruling nullifying the controversial sale of reclaimed land from Manila Bay to the Amari Coastal Bay Development Corp., only Filipino citizens will be reimbursed through land. Corporations can enter into a lease, but must be 60% owned by Filipinos. The reclamation authority has vast powers to approve all reclamation projects under an executive order signed by President Gloria Macapagal Arroyo last June. The implementing rules of Executive Order 543 cover not only private entities but also all cities and provinces as well as government agencies, instrumentalities, and state-owned or -controlled firms. "Reclamation projects undertaken without the required approval of the [Philippine Reclamation Authority] or the President of the Philippines ... shall be considered illegal and shall be forfeited to the State," stated the rules issued last January 31 by the general manager of the Philippine Reclamation Authority, Andrea D. Domingo. Mrs. Arroyo, however, retained the right to modify, amend, or even nullify the reclamation agency’s decisions. In any case, Malacañang must first issue a proclamation declaring reclaimed land as "alienable and disposable" before a title is issued, officials explained. As early as 2005, big corporations began complying with the reclamation agency’s requirements, among them, projects carried out by shipbuilder Tsuneishi Heavy Industries (Cebu) Inc. and JG Summit Holding’s petrochemical plant in Batangas. JG Summit paid P5 million in penalties, officials said. Tsuneishi’s six-hectare reclamation project at the West Cebu Industrial Park in Balamban town, about 64 kilometers west of Cebu City, is part of an expansion project. The Aboitiz and Tsuneishi Groups, partners in the shipbuilding venture, last year asked Trade Secretary Peter B. Favila for help in securing permits for the project and to hasten the issuance of a presidential proclamation for the annexation of the reclaimed area to the 202-hectare West Cebu Industrial Park, a special economic zone developed also by the Aboitiz and Tsuneishi groups. The Mandaue city government has also settled with the Philippine Reclamation Authority regarding a dispute over the city’s North Reclamation Project, site of the Cebu International Convention Center. Mandaue, which had reclaimed more than 81 hectares, agreed last year to pay all fees and penalties and to give the reclamation agency a 5% share of the land. In Cebu province alone, 66 reclamation sites covering more than 190 hectares were identified by the agency for the special registration scheme. Elberto Emphasis, a former member of the reclamation authority’s board of directors, said he facilitated the application of most reclamation project in Cebu last year. "They were all willing to comply with the directive. We just had to make sure that they would send their applications before the deadline. Only the Mandaue application has been approved by the board. The rest still have to submit some documents," said Mr. Emphasis, who is based in Cebu. The Cebu list includes projects by Mandaue and Danao cities and the towns of Naga (four hectares), Bogo (six hectares), Carmen (2.5 hectares), Sogod (1.5 hectares), Oslob (1.5 hectares), Consolacion (five hectares), and Bantayan (five hectares). Danao has reclaimed more than three hectares for a fish port, parking spaces, parks, and for commercial use. The list also includes ship repair and dockyard facilities as well as beach resorts and hotels. Goldland Philippines Corp. reclaimed a half hectare of foreshore land to extend the shoreline of Hilton Cebu Resort & Spa, a de luxe condominium hotel and resort on Mactan Island. Arturo Barrit, consultant to Goldland Philippines, said the firm applied for registration with the reclamation agency immediately after a directive was issued last year. "A joint survey by the [Department of Environment and Natural Resources and the Philippine Reclamation Authority] has been conducted. We’re just complying with some documentary requirements now," Mr. Barrit told BusinessWorld. The reclamation authority’s Ms. Castro clarified that foreshore leases, handled by the Environment department, are still allowed. Foreshore land is defined as "a part of the shore, which is alternately covered and uncovered by the ebb and flow of the tide." Only Filipino citizens and Filipino companies can apply for foreshore leases. Individuals and companies can lease up to 144 hectares for as long as 50 years. "It’s allowed if it is for shoreline protection, a pier, wharf or causeway, or other improvements, [but if there are other uses] it’s considered reclamation," she said.-Report from BusinessWorld