CONVEYING THE LAND RECLAIMED IN THE FORESHORE AND OFFSHORE OF CEBU CITY, BEGINNING FROM PIER 3 AND EXTENDING TO SUBANGDAKU, AS PROPERTY OF THE PUBLIC ESTATES AUTHORITY.

• Number: Presidential Decree No. 1346
• Sections: 13

Preamble

WHEREAS, certain foreshore and offshore (submerged) lands

bordering Cebu City, beginning from Pier 3 and extending to Subangdaku

(hereinafter referred to as the "Cebu Port Development and Reclamation Project")

were reclaimed, purportedly by virtue of Ordinance No. 373, Series of 1962, of

the City of Cebu, as amended by Ordianance No. 474;

WHEREAS, the Civil Case No. R-10468 entitled "Republic of

the Philippines versus Cebu City, et. al.", the Court of First Instance of Cebu

promulgated a Decision finding null and void Ordinance Nos. 373 and 474 of the

City of Cebu and any and all contracts executed pursuant thereto, or as a

consequence thereby, and declaring the reclaimed land as having remained to be

lands of the public domain;

WHEREAS, upon subsequent motion of the Republic of the

Philippines, the Court of First Instance of Cebu found that public interests

require the immediate utilization and further development of the reclaimed lands

and ordered the immediate execution of its Decision pending resolution of

whatever appeal the party litigants may interpose therefrom;

WHEREAS, the paramount and imperative requirements of the

public necessitate the implementation of the said order of execution pending

appeal and the termination of the protracted litigation;

WHEREAS, the Public Estates Authority (hereinafter referred

to as the "Authority") was created pursuant to Presidential Decree No. 1084 to

provide for a coordinated, economical and efficient reclamation of lands, and

the administration and operation of lands belonging to, managed or operated by

the government, with the object of maximizing their utilization and hastening

their development consistent with the public interests;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution, do hereby

decree and order:

Section 1 Conveyance of reclaimed lands.

SECTION 1. Conveyance of reclaimed lands. — Subject

to the provisions hereof, the absolute ownership and administration of lands

reclaimed in the foreshore and offshore areas of Cebu City under the Cebu Port

Development and Reclamation Project, subject of the Decision of the Court of

First Instance of Cebu in Civil Case No. R-10468, together with all the public

improvements therein found such as buildings, roads, parks, community area,

wharves, piers embarkments, and docking and harbor facilities, are hereby

transferred, conveyed and assigned to the Authority.

Section 2 Cancellation and issuance of certificate/s of the title.

SEC. 2. Cancellation and issuance of certificate/s of

the title. — The Land Registration Commission and the Register of Deeds of

Cebu City shall cancel Original Certificate of Title No. 140 issued in the name

of Cebu City and all Torrens Titles emanating therefrom. In lieu thereof,

special land patent/s covering the above-described parcel of reclaimed land

shall be issued by the Secretary of Natural Resources in favor of the Authority

and, on the basis of such Patent/s, the Land Registration Commission shall issue

the corresponding certificates of title.

Section 3 Recognition of Claims.

SEC. 3. Recognition of Claims. — In the interest of

equity, the Authority shall recognize the claims of all person or entities who

extended loans or furnished supplies, materials and technical services in the

reclamation and development of the reclaimed area (the "creditors"), including

those who invested in the capital stock of the Cebu Development Corporation (the

"shareholders") and/or who purchased lots in the reclaimed area (the "lot

buyers"). The Authority shall settle such claims under the following terms:

The claims of all creditors shall be settled fully, but without interest

being accrued thereon, and the amounts due to creditors shall be computed by

taking into account the original nature of the transaction/s, particularly

whether the said amounts were expended or incurred, by translating the same into

Philippine currency at the rate of exchange prevailing on the date of

settlement;

The investments of shareholders shall be returned to them, without accruing

any dividends or fruits thereon, and the amounts to be returned to shareholders

shall be computed by considering the original nature of the investments,

particularly whether the investments were contributed in foreign currency, and,

if so contributed, by translating the same into Philippine currency, at the rare

of exchange prevailing on the date of settlement; and

Lot buyers who had fully paid, as of December 31, 1976, the purchase price

originally contracted with Cebu Development Corporation shall be required to pay

an additional amount equivalent to 33-1/3% of the purchase price as premium. Lot

buyers who have not fully paid the said purchase price as of December 31, 1976,

regardless of the amount outstanding shall be required to pay an additional

amount equivalent to 50% of the purchase price as premium. The Authority shall

issue the corresponding certificates of title to such lot buyers after payment

of the premium and outstanding amounts of the purchase price.

Section 4 Settlement of Claims.

SEC. 4. Settlement of Claims. — For the purpose of

effecting the settlement of claims mentioned in the preceding Section, the

Authority shall, unless otherwise subsequently authorized by the President of

the Philippines upon recommendation of the Authority, undertake payment of such

claims only out of funds generated from the sale, disposition or utilization of

the reclaimed area by the Authority.

The Central Bank shall allow payments to foreign claimants to be fully

converted into and remitted abroad in the appropriate foreign currency.

Section 5 Waiver of claimants' rights.

SEC. 5. Waiver of claimants' rights. — Persons and

entities whose claims will be processed for settlement by Authority shall be

deemed to have waived and abandoned all their rights and causes of action

arising out of, or in connection with, the Cebu Port Development and Reclamation

Project. Prior to presentation of any claim, a party litigant in Civil Case No.

R-10468 must first withdraw his appeal, if any, from the Decision rendered in

said case. A lot buyer, whether a party litigant or not in Civil Case No.

R-10468, having failed to pay the premium authorized under Section 3 (c) above

within the period allowed by the Authority, shall automatically forfeit the lot

and any payment thereon in favor of the Authority.

Section 6 Disposition and utilization of reclaimed land.

SEC. 6. Disposition and utilization of reclaimed

land. — The Authority shall utilize the reclaimed area to accomplish the

purposes for which it was created and organized and shall, by itself or through

reputable private developer/s, under such rules and regulations as it may

prescribe, sell, lease, or encumber any portion or portions of the reclaimed

area.

Section 7 Utilization of income.

SEC. 7. Utilization of income. — Any and all income

that the Authority may derive from the sale, lease, or use of the reclaimed area

shall be utilized for the payment of the obligations it may incur under the

provisions of Sections 3, 4 and 6 hereof, the costs of administering the

reclaimed area, and the expenses it may incur in the prosecution of its

corporate purposes. The remaining balance thereof shall accrue to and be

utilized by the Authority to effectively carry out its functions pursuant to

P.D. 1084. This income shall be considered as revenues of the Authority from its

business or commercial operations.

Section 8 Project Development.

SEC. 8. Project Development. — The Authority may,

at its discretion, enter into a development and/or management contract with any

recognized and reputable real estate developer under such terms and conditions

as the Authority may deem proper and necessary.

Any development undertaken by the Authority by itself or through a real

estate developer shall be exempt from regulations now existing or hereafter

promulgated governing real estate subdivision.

Section 9 Assistance of other Government Agencies.

SEC. 9. Assistance of other Government Agencies. —

The Authority is hereby authorized to call upon any agency of the national and

local government and their instrumentalities which are hereby enjoined to render

whatever assistance the Authority may need for the effective implementation of

this decree.

Section 10 Separability Clause.

SEC. 10. Separability Clause. — Should any

provision of this Decree be held unconstitutional, no other provision hereof

shall be effected thereby.

Section 11 Repealing Clause.

SEC. 11. Repealing Clause. — All laws, regulations

inconsistent with any provision hereof are hereby repealed, amended, or modified

accordingly.

Section 12 Effectivity.

SEC. 12. Effectivity. — This Decree shall take

effect immediately.

DONE in the City of Manila, this 11th day of April, in the year of Our Lord,

nineteen hundred and seventy-eight.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JUAN C. TUVERA

Presidential

Assistant