Presidential Decree No. 1346 (PD 1346) — 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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
Separability Clause.
SEC. 10. Separability Clause. — Should any
provision of this Decree be held unconstitutional, no other provision hereof
shall be effected thereby.
Repealing Clause.
SEC. 11. Repealing Clause. — All laws, regulations
inconsistent with any provision hereof are hereby repealed, amended, or modified
accordingly.
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
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
