Supreme Court asked to stop Chico River irrigation project

The House of Representatives' Makabayan bloc, a former lawmaker, and a farmers' group on Thursday asked the Supreme Court to halt the Chinese loan-funded Chico River irrigation project.

In a 67-page filing, the petitioners urged the justices to issue a temporary restraining order and/or a writ of preliminary injunction enjoining Philippine authorities from enforcing the P3.6-billion loan agreement between the Philippine government and a Chinese bank.

The opposition House members, Bayan Muna chairman Neri Colmenares, and the Kilusang Magbubukid ng Pilipinas ultimately seek the Court's declaration of the multibillion-peso deal as "unconstitutional, illegal, and void."

The loan agreement that governs the Chico River irrigation has been criticized for its provisions that supposedly allow China to seize the Philippines' patrimonial assets, including oil and gas in Reed Bank, should Manila default in its debt payment.

"'Collateralization' of patrimonial property for unpaid obligations under a foreign loan contract or as an award in an arbitral proceeding is unconstitutional and illegal," the petition stated.

Patrimonial properties are those owned by the state but are not intended for public use or for public service. Senior Associate Justice Antonio Carpio earlier said the oil and gas in Reed Bank had been converted into patrimonial assets as early as 1972.

The petitioners argued the loan agreement violates Section 7, Article XII of the 1987 Constitution because it allows the "collateralization" of patrimonial assets to a foreign entity unqualified to hold Philippine lands.

They said such assets could include ports, energy resources, and the country's natural resources, leading to a situation that would "impact negatively on our national sovereignty, territorial integrity, and is inimical to our national interest."

Questioning the deal's "one-sidedness" in favor of China, they said the government bound the country to "a Chinese tribunal, applying Chinese laws, to settle disputes arising from or in connection with a loan agreement, the terms and conditions of which were drafted by the Chinese."

"In Philippine courts, the cold impartiality of a judge is expected. There is none to be assumed here," the petitioners stated.

They added that the confidentiality clause of the deal violated Filipinos' right to information on foreign loans entered into by the government, and questioned the Monetary Board's approval of the agreement only after it was signed by the two governments.

The petitioners likewise asked the High Court to order the government to produce the "procurement documents in granting the civil works to the Chinese contractor," as well as the certified true copies of "all loan agreements executed by and between" the Philippines and China.

Named respondents in the petition were President Rodrigo Duterte, Executive Secretary Salvador Medialdea, Finance Secretary Carlos Dominguez III, Socioeconomic Planning Secretary Ernesto Pernia, and Justice Secretary Menardo Guevarra. — RSJ, GMA News