Republic of the Philippines

COURT OF APPEALS
MANILA
***

FORMER
SPECIAL FIRST DIVISION

SWIM (Save Waters of Indang, CA-G.R. SP No. 00028

Cavite Movement Inc.) and
its PRES. BUENAVENTURA Members:
RAMOS, VICE-PRES. BAYANI
MATEL, SECRETARY ARMIN P.J. REYES, JR., A.B.,
OLORES, TREASURER Chairperson
ILUMINADA SILAO, and BARRIOS, M.M., and
JOSEFINO VIADO, in their CORALES, P.B., JJ.
representative and personal
capacities,
Petitioners,

- versus -

PTK2 H20 CORPORATION,

represented by its President,
CRISOLITO O. DIONIDO;
NATIONAL WATER RESOURCES
BOARD, represented by its
OIC-Executive Director, ATTY.
ELENITO M. BAGALIHOG;
TAGAYTAY CITY WATER
DISTRICT, represented by its
General Manager, RUTH E.
AMBION; DEPARTMENT OF Promulgated:
ENVIRONMENT AND NATURAL
RESOURCES REGION IV,
represented by its Regional JANUARY 30, 2015
Director, CARLOS J. MAGNO, ____________________________
Respondents.
x -------------------------------------------------------------------------- x

DECISION
CA-G.R. SP No. 00028 page 2
DECISION

BARRIOS, M. M., J.:

This is a Petition for Writ of Kalikasan (With Prayer for

TEPO) under A.M. No. 09-6-8-SC (Rules of Procedure for
Environmental Cases) praying that private respondents
PTK2 H2O Corporation (PTK2) and Tagaytay City Water
District (TCWD) be ordered to permanently cease and desist
from extracting water from Ikloy, Indang, Lambak and
Saluysoy rivers in the province of Cavite as well as from
undertaking construction works within the vicinity, and for
respondents to protect, preserve, rehabilitate or restore
Ikloy river and the affected areas in Brgy. Kayquit II,
Indang, Cavite.

THE ANTECEDENT FACTS

On 23 April 2012, private respondent TCWD entered

into a water supply contract 1 with private respondent PTK2
for the supply of 3,600,000 cubic meters (cu.m.) of water
annually, or 10,000 cu.m. per day, to the former for a
period of twenty (20) years for consumption in Tagaytay
City. At present, TCWD sources its water requirements
from several deep wells, but it foresees a gigantic increase
in consumption due to the influx of hotels and other
industrial and commercial establishments in Tagaytay City.

Prior thereto, PTK2 had applied for and was already

granted conditional water permits2 by public respondent
National Water Resources Board (NWRB) for four (4) major
rivers, namely: Lambak, Indang, Saluysoy and Ikloy, all
located in Indang, Cavite, from where the former planned to
source the water that TCWD would be needing under the
contract. These conditional permits dated 24 November
2010 allowed PTK2 to extract water at the following rates:
1Rollo, pp. 55 – 64.
2 Id., pp. 76 – 79.
CA-G.R. SP No. 00028 page 3
DECISION

(a) Lambak River – 126 liters per second (lps.); (b) Indang
River – 110 lps.; (c) Saluysoy River – 45 lps.; and (d) Ikloy
River – 50.56 lps. On 28 May 2012, these conditional
permits have ripened into permanent water permits, 3
despite the admitted fact that no extraction of water had
actually been made by PTK2 on the former permits.
Thereafter, PTK2 and TCWD entered into a Memorandum
of Understanding4 (for Supply of Bulk Water) dated 04 July
2012 increasing the volume of their water supply
agreement. Accordingly, on 15 December 2012, a
Memorandum of Agreement5 (for Increased Supply of Bulk
Water) was entered into between PTK2 and TCWD where
the supply was dramatically increased to 50,000 cu.m. per
day for a period of ten (10) years. On account of this, PTK2
applied again with NWRB for increase in the allowable
extraction of water from Ikloy and Lambak rivers. This was
later granted by NWRB in a Resolution 6 dated 14 March
2012 (sic) where it was found that PTK2 was allowed only
331.56 lps. or 28,646.78 cu.m., but needed to supply at
least 50,000 cu.m. per day. Thus, the NWRB increased the
allowable water extraction from Ikloy River to 107.26 lps. or
9,267.26 cu.m., and from Lambak River to 270 lps. or
23,328 cu.m. Factoring in the increase, PTK2 has been
allowed by NWRB to extract a total of 532.26 lps. or
45,987.26 cu.m. per day from the four (4) rivers.

Meanwhile, on 12 April 2013, PTK2 applied for and

was granted Environmental Compliance Certificate (ECC)
ECC-R4A-1304-02017 by public respondent Department of
Environment and Natural Resources (DENR). It is
significant to note, however, that the aforesaid ECC
covered Ikloy River only, and was limited to a maximum
capacity of Twenty Thousand (20,000) cu. m. per day. The

3 Id., pp. 80 – 83.

4 Id., pp. 84 – 86.
5 Id., pp. 88 – 90.
6 Id., pp. 91 – 95.
7 Id, pp. 100 – 105.
CA-G.R. SP No. 00028 page 4
DECISION

components of the ECC which were noted and approved by

DENR for the project were the following: “Intake
Structure (intake weir and wet well), three (3)
units of Submersible Pumps, a unit of Flocculation
and Sedimentation Basin, Pressure Filter Tanks
and Effluent Channel, four (4) units of Booster
Pumping Stations, Administration and Laboratory
Building, x x x, and installation of 11.80 kilometer
water pipe x x x.”

The Case of Petitioner

When petitioners discovered the project, the

construction of the intake structure had already started in
Ikloy River. The Indang residents and other environment
conservation groups vehemently protested the project and
made a strong stand against it. A study was prepared by
Prof. Noel Sedigo under commission from the Cavite State
University where it was concluded that the project was not
environmentally sound. It was noted in that study that
SUWECO and Indang Water District measured the actual
flow of the rivers in May 2012 which yielded the following
results, to wit: a) Ikloy River – 369.50 lps. or 31,924.80 cu.
m.; b) Lambak River – 312 lps. or 26,956.80 cu. m.; c)
Saluysoy River – 59.50 lps. or 5,140.80 cu. m.; and d)
Indang River – 8.4 lps. or 725.76 cu. m. 8 The international
authorities on the matter, Wright and Nebel9, advocate that
only thirty percent (30%) of the surface water flow may be
appropriated; unfortunately, however, the water permits
allowed PTK2 to extract more than the said quantity.
Premised on these factors, petitioners filed the instant
petition.

During trial, Prof. Sedigo, an environmental scientist,

expounded on his study entitled: “The Holistic Analysis of

8 Id., p.163.
9 Id., p.170.
CA-G.R. SP No. 00028 page 5
DECISION

the Indang Water Problem” which is a compilation of

different studies conducted by students, researchers and
faculty members of Cavite State University, as well as the
1982 and 1991 studies of JICA and his own thesis about
agro-ecosystem analysis of Ikloy River watershed that was
made in 1994. He described the four (4) rivers that would
be affected by the water supply project as shallow and non-
navigable. These rivers form part of three (3) watersheds in
Cavite, namely Labak, Maragondon, and Kanyas
watersheds.

Prof. Sedigo testified that the clearing and pipe-laying

operations will affect the riparian ecosystem near the
rivers, which, in turn, would negatively affect the kaong
trees planted near the riverbanks and the existence of the
giant cloud rats, a critically endangered species. He averred
that PTK2 erected its intake structure at the head water or
spring of Ikloy River. About twenty-three percent (23%) of
Indang residents use the river for domestic purposes, while
the downstream flow is used by the municipality of Naic for
irrigation. The construction of structures and extraction of
water from the origin of the river would destroy the system
and, ultimately, the riparian ecosystem and the irrigation of
other municipalities. Erosion and sedimentation will be the
direct results of the excavation which is needed to build the
tanks and other components of the project. The hydrologic
cycle may be interrupted if the water withdrawn from the
river is more than its regenerative capacity; thus, there will
be a direct impact on the sustainability of the river system.
Considering that the Bulk Water Supply Project would need
a total of 50,000 cu. m. of water per day from the four (4)
rivers, it is to be expected that the negative impact will be
felt within two (2) to five (5) years. Moreover, a decrease in
the flow of the rivers will adversely affect the estuarine
ecosystem of the lowlands or the salinity of the water which
the lowlands rely on for the fish and seafood industry
thriving in Cavite.

At present, there is already an overdrawing of

CA-G.R. SP No. 00028 page 6
DECISION

groundwater and most of the river systems in Cavite, such

as in Tagaytay City and Mendez, are already dried or are
drying up. This assertion was corroborated by Ms. Eloisa
Tolentino, a former vice mayor and councilor of Carmona,
Cavite, who testified that General Mariano Alvarez,
Carmona and Dasmariñas City are currently experiencing
water shortage already. With particular reference to Indang,
it is expected that Ikloy river alone would suffice to serve its
needs - taking into consideration the projected population
growth - until year 2015 only.

It is ironic that the ECC granted to PTK2 has allowed

extraction of 20,000 cu. m. per day considering that the
total discharge of the several springs that flow to Ikloy River
were measured in the study by Prof. Sedigo at a minimum
of 16,666.56 cu. m. to a maximum of 19,517.76 cu. m. per
day. In relation thereto, it is worthwhile to state that
Indang alone already needs about 12,000 cu. m. per day.
Further studies are currently being undertaken to
determine the totality of the flow of rivers and streams, the
stakeholders, and how to equitably share the water.

Defense of Respondent
National Water Resources Board

By way of opposition, respondent NWRB claimed that

it sent Notices of Water Permit Application to all concerned
agencies, such as the Department of Public Works and
Highways, Cavite Sub-District Engineering Office of Indang
Water District, and Tagaytay City. Requests to post the
Notices of Water Permit Application were likewise sent to
the different barangay offices concerned, Sanggunian
Secretary of Indang, Cavite, Sanggunian Secretary of the
Province of Cavite, District Engineer Cavite Sub-District of
DPWH, Regional Director of DPWH Region IV-A, NIA Cavite
PIO, and the Indang Water District. No protest or objection
was received. Moreover, the 1st Indorsement dated 25 April
CA-G.R. SP No. 00028 page 7
DECISION

2008 signed by Engr. Carlito Jose of the Cavite Sub-

District Engineering Office of the DPWH and the
Endorsement of Water Permit Application dated 19 May
2008 signed by Elpidio Legaspi of the Indang Water District
certified that there will be no adverse effect to any other
users in the area and thus, recommended for the approval
of the applications. Mayor Bienvenido Dimero of Indang,
Cavite also signed a Certification to Utilize Water Sources
dated 18 March 2008.

When PTK2 applied for increase, the same procedure

as above was followed. As in the previous application, no
objection was registered, and thus, the increase was
approved. Likewise, the NWRB followed the beneficial use
of water rule consistent with the principle of sustainability.
It took into account the available water from the source
and the volume needed to produce the benefit for which it
shall be appropriated. From the computations provided by
the NWRB, the volume granted to PTK2 totaled to
45,987.26 cu. m. per day, while the total available water
from the four (4) river sources is only 49,079.20 cu. m. per
day.10

In addition, there was confusion as to whether it is

the water permit or an ECC that must be secured prior to
the issuance of the other. The EMB requires the issuance of
a water permit before an ECC can be granted; however, the
Implementing Rules and Regulations of the NWRB requires
an ECC but only for environmentally critical projects (ECP)
and for projects within the environmentally critical areas
(ECA). The NWRB has, thus, created a standard wherein a
project requiring the construction of a dam shall be
considered an ECP. It is argued that since PTK2 will not
construct a dam and the project is not situated in an ECA,
then NWRB granted the water permits without requiring
an ECC.

10 Id, p.200.
CA-G.R. SP No. 00028 page 8
DECISION

Nevertheless, as averred in its memorandum, NWRB

issued an Order dated 04 November 2014 (after the hearing
of this petition was conducted) directing PTK2 to show
cause within ten (10) days why the water permits that were
issued in its favor should not be revoked.

Defense of Respondent
Department and Environment and Natural Resources

For its part, DENR maintained that it followed proper

procedure and issued the ECC in good faith and in the
regular performance of official duty. It argued that an
Environmental Impact Statement (EIS) is not needed for
water supply system projects. Besides, the ECC that it
issued has set conditions and restrictions that must be
observed, the violation of which may result to its
suspension or revocation.

The objections of petitioners and residents of Indang

was communicated to DENR through Fax Memorandum
dated 24 March 2014. Resultantly, the DENR ordered an
investigation of the PTK2 project to check whether there
was a violation of the ECC; and in a Notice of Adverse
Findings released on 06 June 2014, the DENR found that
PTK2 had committed nine (9) violations thereof. Technical
conferences were held to give PTK2 an opportunity to
explain its side. Thereafter, the DENR issued an Order
dated 04 July 2014 finding PTK2 to have committed
breaches of the ECC conditions and thus, imposed
administrative fines of Fifty Thousand Pesos (P50,000.00)
per violation. In the meantime, the ECC was temporarily
suspended until PTK2 has complied with all the conditions
set forth therein.
CA-G.R. SP No. 00028 page 9
DECISION

Defense of Respondent
Tagaytay City Water District

As for TCWD, it maintained that it merely acted

according to its mandate to serve the water requirement of
Tagaytay City when it entered into a contract with PTK2,
and for which, proper procurement proceedings were
followed. Its relationship with PTK2 was purely contractual,
and its only participation was buying from the latter 50,000
cu. m. of water per day.

Defense of Respondent
PTK2 Corporation

PTK2, for its part, contended that the petitioners failed

to prove that inhabitants of two (2) or more cities or
provinces will suffer from the project. On the contrary, it
argues that the project will even enhance the lives, health
and properties of the residents of Indang. As of the present,
the activities of PTK2 are confined in Indang alone; hence,
no other city or municipality is affected. It also denied the
cutting of trees without permit, even as the Order dated 04
July 2014 of the DENR found that it (PTK2) violated the
ECC condition to first procure tree cutting permits before
doing the same.

THE ISSUES

The instant petition, on the whole, have raised the

following issues:

I.

RESPONDENTS ARE GUILTY OF THE

FOLLOWING UNLAWFUL ACTS OR OMISSIONS:
CA-G.R. SP No. 00028 page 10
DECISION

1. VIOLATION OF THE SUSTAINABILITY

REQUIREMENT OF THE 1987 CONSTITUTION,
SECTIONS 1 AND 2 OF PRESIDENTIAL DECREE
1151, OTHERWISE KNOWN AS THE PHILIPPINE
ENVIRONMENTAL POLICY, AND LAWS ENFORCING
THE SAME;
2. APPROVAL AND ISSUANCE OF WATER PERMITS
WITHOUT THE REQUISITE ENVIRONMENTAL
COMPLIANCE CERTIFICATES IN VIOLATION OF: (a)
SECTION 4 OF PRESIDENTIAL DECREE NO. 1586
ENTITLED ESTABLISHING AN ENVIRONMENTAL
IMPACT STATEMENT SYSTEM INCLUDING OTHER
ENVIRONMENTAL MANAGEMENT RELATED
MEASURES AND FOR OTHER PURPOSES AND (b) THE
RULES AND REGULATIONS OF THE NWRB
GOVERNING THE ISSUANCE OF THE SAID PERMITS;
3. APPROVAL AND PURSUIT OF THE BULK WATER
SUPPLY PROJECT WITHOUT THE REQUISITE
ENVIRONMENTAL IMPACT STATEMENT IN
VIOLATION OF SECTION 4 OF PRESIDENTIAL
DECREE 1151;
4. ISSUANCE OF THE ENVIRONMENTAL
COMPLIANCE CERTIFICATE THAT IS: (a) NOT
SUPPORTED BY AN ENVIRONMENTAL IMPACT
STATEMENT, AND (b) CONFINED ONLY TO THE
EXTRACTION OF WATER AT IKLOY RIVER AND DOES
NOT CONSIDER THE ENTIRETY OF THE PROJECT,
INVOLVING LAMBAK, SALUYSOY, AND INDANG
RIVERS;
5. DELIBERATELY IGNORING THAT THE
TAGAYTAY BULK WATER PROJECT OF PTK2 H2O
WILL DIRECTLY DESTROY THREE WATERSHEDS IN
CAVITE, WHICH ARE PROTECTED AREAS UNDER
THE NATIONAL INTEGRATED PROTECTION AREAS
(NIPAS) ACT;
6. CUTTING OF TREES WITHOUT THE REQUIRED
CUTTING PERMIT AND IN VIOLATION OF THE ECC
AND REPUBLIC ACTS 3571 AND 3572;
7. ALLOWING THE EXTRACTION OF WATER
ULTIMATELY FOR COMMERCIAL AND INDUSTRIAL
USE IN THE SINGLE CITY OF TAGAYTAY TO THE
PREJUDICE OF DOMESTIC AND MUNICIPAL
APPROPRIATION FOR 12 CITIES AND
MUNICIPALITIES OF CAVITE PROVINCE IN
VIOLATION OF THE WATER CODE.
CA-G.R. SP No. 00028 page 11
DECISION

II.

THESE UNLAWFUL ACTS OR OMISSIONS

INVOLVE THE GRAVE AND IMMINENT DANGER OF
DISSIPATION AND DRYING UP OF WATER
RESOURCES, WHICH CONSTITUTE ENVIRONMENTAL
DAMAGE THAT PREJUDICE THE LIFE, HEALTH, OR
PROPERTY OF INHABITANTS IN AT LEAST THREE
CITIES AND NINE MUNICIPALITIES IN CAVITE.

OUR RULING

At the onset, We have determined that petitioners -

being bona fide residents of Cavite – have locus standi to
initiate and prosecute the petition. Indeed, it is the
constitutional right of every Filipino and inhabitant of this
country to have a balanced and healthful ecology and to quest
for sustainable development.11 In this case, the PTK2 project
was prompted by the increasing water consumption
requirements of Tagaytay City brought about by its
development as a vacation haven.

In this pursuit, it should be stated that even petitioners

herein do not find any real problem if the project is to create a
good and sustainable water supply or distribution system for
the benefit of the entire province of Cavite that comprise six (6)
cities and seventeen (17) municipalities. What petitioners are
objecting, however, is that respondents have fast-tracked the
process and have by-passed important environmental
regulations and concerns, most especially since PTK2 was
granted a permit to extract 10,000 cu. m. of water everyday
from the head water of Ikloy River which is the main source of
other neighboring river systems without a public hearing prior
to its implementation.12

11 Most Rev. Pedro Arigo, et al v. Scott H. Swift, et al., G.R. No. 206510, 16 September 2014, citing
Oposa v. Factoran, Jr., G.R. No. 101083, 30 July 1993.
12 TSN dated 11 August 2014.
CA-G.R. SP No. 00028 page 12
DECISION

Scrutinizing the voluminous documents submitted, this

Court finds disturbing the lack of proper study and serious
consideration of environment laws and regulations by the
concerned government agencies whose mandate is precisely to
protect the environment. From the testimonies gathered,
including those of their own employees, it has became
apparent that the water permit and ECC applications of PTK2
were given a lackadaisical and perfunctory assessment and
processing by both NWRB and DENR which are seemingly ill-
equipped and unprepared to address the varied concerns of
the environment. For one thing, other than discussing the
legitimate issues of sustainability and adaptability of the
project, these agencies have granted the applications because
there was a lack of objection or comment from those whom
they gave notices of the application and unabashedly try to
hide behind the cloak of presumption of regularity. In Our
view, a pro-active approach requiring a more exhaustive and
relevant study, assessment and determination is necessary in
order to have a reasonable, equitable and sustainable
extraction and utilization of the water resources to all six (6)
cities and seventeen (17) municipalities in the province of
Cavite.

Section 1, Rule 7, Part III of The Rules of Procedure for

Environmental Cases provides for the conditions to avail of the
extraordinary remedy of Writ of Kalikasan, viz:

“x x x

SEC. 1. Nature of the writ. - The writ is a remedy

available to a natural or juridical person, entity authorized by
law, people's organization, non-governmental organization, or
any public interest group accredited by or registered with any
government agency, on behalf of persons whose constitutional
right to a balanced and healthful ecology is violated, or
threatened with violation by an unlawful act or omission of a
public official or employee, or private individual or entity,
involving environmental damage of such magnitude as to
prejudice the life, health or property of inhabitants in two or
more cities or provinces.
CA-G.R. SP No. 00028 page 13
DECISION

xxx”

The writ of kalikasan is a special remedy available against

an unlawful act or omission of a public official or employee, or
private individual or entity, involving environmental damage of
such magnitude as to prejudice the life, health or property of
inhabitants in two (2) or more cities or provinces.13 To sustain
a petition for writ of kalikasan, the following must be proven, to
wit: a) there must be an unlawful act or omission on the part of
the respondent; b) such unlawful act or omission must involve
environmental damage of such magnitude as to prejudice the
life, health or property; and, c) those affected must be
inhabitants of two (2) or more cities or provinces.

In the first instance, it is a conceded fact that private

respondents TCWD and PTK2 have entered into an
agreement14 for the latter to deliver to the former a daily supply
of potable 50,000 cu.m. of water to be taken from Ikloy,
Lambak, Indang and Saluysoy Rivers located in Indang, Cavite
for a period of ten (10) years, which is to be utilized for public
consumption in Tagaytay City. By virtue thereof, PTK2 applied
for and was granted by the NWRB water permits allowing it to
extract a total of 532.26 lps. or 45,987.26 cu. m. per day 15
from the four (4) rivers.

The comprehensive study and research that was

conducted by petitioners' witness, environmental scientist
Professor Noel Sedigo, suggested that the total discharge of the
springs which flow to Ikloy River – the head water - is only
measured at a minimum of 16,666.56 cu.m. to a maximum of
19,517.76 cu.m. per day. Significantly, it is only 30% of the
surface water flow that is allowed to be appropriated. Clearly
then, the approved water extraction rate granted by NWRB to
PTK2 has exceeded the maximum limit; and therefore, since
water is an essential element of life and resource of the

13 Annotation to the Rules of Procedure for Environmental Cases (accessed via

http://philja.judiciary.gov.ph/assets/files/pdf/learning_materials/A.m.No.09-6-8-SC_annotation.pdf
last 11 December 2014), pp. 133 – 134.
14 Memorandum of Agreement, at Note 5.
15 Resolution, at Note 6.
CA-G.R. SP No. 00028 page 14
DECISION

environment, this can have considerable adverse and

dangerous consequences to the riparian ecosystem and
livelihood in Indang as well as to the other affected cities and
municipalities of Cavite.

In fact, Prof. Sedigo raised the warning that if the project

of PTK2 is to be continued, adverse effects will likely result.
Considering that the permit allows water extraction of 10,000
cu.m. per day, only 6,000 to 9,000 cu.m. would be left
available for the consumption of all other users - humans and
flora and fauna alike – in those affected areas, and obviously,
this would not be sufficient. Further, since 1994, the water
condition in Ikloy River have drastically changed. At present, it
is widely known that there is already an overdrawing of
groundwater brought about by the deep wells of industrial
establishments in the area, and most of the river systems in
Cavite, such as in Tagaytay City and Mendez, are already dried
or are drying up. Also, the water level in Indang is decreasing,
and considering the expected increase in population, the
prognosis is that Ikloy River will be able to serve the needs of
Indang only up to the year 2015. Indeed, with the continuation
of the bulk water project, coupled by the global warming
phenomenon now being experienced, there is imminent
possibility that these four (4) rivers may soon dry up, much to
the prejudice not only of Indang town and the neighboring
localities, but in general, to the whole province of Cavite. Thus,
the marked decline in the flow of rivers would definitely have
adverse effect on the estuarine ecosystem of the lowlands or
the natural salinity of the water which the lowlands rely on for
their fish and seafood industry. In this regard, there is logic
and sense to the opinion of Prof. Sedigo that the project will
doubtlessly have a negative impact on the ecosystem within
the next two (2) to five (5) years.

Moreover, in his testimony, Prof. Sedigo stated that the

main factors that affect or influence a river system are the
following: a) laying down of pipes in the river; b) excavation;
c) sedimentation; and, d) cutting of trees near the river.
Notably, PTK2's placement of intake structures in Ikloy river,
CA-G.R. SP No. 00028 page 15
DECISION

its clearing and pipe-laying operations, its on-going excavation

and construction of facilities in the area as well as the cutting
of trees along the riverbanks without the needed permit from
the DENR have definitely affected the riparian ecosystem near
the rivers, which negatively impact the kaong trees planted
near the riverbanks and the survival of the giant cloud rats
which is a critically endangered species, not to mention the
irrigation system of the neighboring areas. Erosion of the
banks and sedimentation of the river have concededly resulted
on account of the construction activities. Further, the
hydrologic cycle will certainly be interrupted if the water
withdrawn from the river is more than its regenerative
capacity; hence, there will be a direct impact on the
sustainability of the river system.

At present, PTK2 has already started its excavation,

construction, and pipe-laying activities in Ikloy River. It is
observed that a large concrete water intake structure was built
on the river bed itself, just five (5) meters away from Ikloy
spring which is the main source of the Indang Water District
(IWD). Regretably, the pictures submitted as evidence by the
parties plainly and clearly depict the current sad and
anomalous state of Ikloy River. It has been greatly constricted
by the works and only a small portion thereof, approximately
about one (1) to two (2) meters, is left for the remaining water
to flow. As We have earlier stated, the concrete intake
structure was built by PTK2 on the riverbed itself and there is
also some back filling of other parts of the river, such that the
original state of the river has been drastically altered.
Considering the close proximity of the PTK2 intake structure to
the IWD facility, it is likely that PTK2 will be siphoning water
directly from the spring itself. Although Ikloy River admittedly
has other sources of water downstream, it is beyond doubt
that Ikloy spring is its main source at the point where PTK2
built its intake structure. Coupled with the fact that only a
miniscule area is left for the excess water to flow as depicted in
the pictures, one does not need to be a scientist nor an expert
technical person to make a reasonable and realistic
assessment of the volume of water that is left to flow freely and
CA-G.R. SP No. 00028 page 16
DECISION

to arrive at a logical conclusion that the allowed harvest of

surface water at the particular site of Ikloy River is not
sustainable and will disrupt and prejudice the water needs of
other places of Cavite.

From the extant evidence, it is also noted that the

construction works on the intake and filtering structures as
well as the laying of 800 mm. concrete pipes are undoubtedly
concentrated in the Ikloy River area. Although the three (3)
other rivers mentioned in the water permits were not inspected
and photographed, as admittedly, there is no work or activity
there, it is apparent – and this has been established - that the
most bountiful of these rivers from where PTK2 intend to
source the water is Ikloy River. The other rivers, i.e., Saluysoy,
Indang and Lambak, have also been described as shallow and
non-navigable. Should the current state of Ikloy River be
replicated in the other three (3) rivers, there is grave and
imminent danger that these river systems will be adversely
affected, thereby damaging the other watersheds in Cavite, and
consequently, the industries and activities therein that are
thriving and dependent on these rivers.

Assessing the documents before Us, it can be gleaned

that the water supply agreement for 50,000 cu. m. distribution
system of PTK2 is manifestly off-tangent to the maximum
amount of water allowed to be harvested under the NWRB
permits which is 45,987.26 cu. m., not to mention that this
latter figure is not even justified by actuality; more so, since the
contract for the increase of water supply even preceded the
water permit application. It is observed that even the
independent CEST Inc. study that was submitted by PTK2
noted that “The measurement was conducted on October 22,
2007. The total combined yield of spring is about 18.10 Million
Liters per Day (MLD) short of about 12 MLD to reach the target
30 MLD the total yield or volume needed to supply in bulk to
adjacent municipalities which have inadequate water supply
sources.”16 The aforesaid study of CEST, Inc. likewise noted
that the total discharge of Indang River is only 175 lps, while

16 Rollo, p. 454.
CA-G.R. SP No. 00028 page 17
DECISION

Lambak River is only 220 lps. It further concluded that the

three (3) ungaged rivers – Ikloy, Lambak and Indang – are
insufficient to individually supply the target volume. These
rivers are dependent on the flow of the springs, such that any
diversion of the latter shall affect the total yield of the rivers,
particularly Ikloy River. Clearly, therefore, to authorize the
water supply contract between PTK2 and TCWD to push
through according to their current plan will evidently lead to
irreversible environmental damage.

At this juncture, it is worthwhile to mention that the

process utilized by respondent DENR in granting the ECC to
PTK2 had even violated its own DENR Department Order
2003-30. There appears to be an obvious disregard or, at
least, circumvention of the rules when PTK2 categorized the
project in Ikloy as a single project that would provide TCWD
with 10,000 cu.m. only per day17 if We consider their supply
agreements which state that the project involves 50,000 cu.m.
per day from four (4) different rivers. Yet, the construction
works being undertaken by PTK2 are actually concentrated in
Ikloy only and, implied from the 800 mm. size of the
transmission pipes being laid, the design to maximize the
utilization of Ikloy even beyond the authorized extraction rate
seems apparent, or at least, quite probable. The situation is
even made worse when Ms. Noemi Paranada, Chief-
Environmental Management Division of DENR Region IV-A,
testified18 that her division issued the subject ECC without
requiring an Environmental Impact Statement (EIS) because
they considered the bulk water project as a “distribution - only
system”, contrary to the categorical designation made by PTK2
itself in its Initial Environmental Examination (IEE) Checklist
Report that the same is a “complete system.”19 When Ms.
Paranada approved the same, she justified her course of action
on the significance of the words “six wells” as described under
Category 156.S4 on page 71 of the Revised Procedural Manual
for DENR DAO 2003-30. She cursorily noted that since the
IEE did not mention that there are wells but stated only that
17 Rollo, p.252.
18 TSN dated 11 September 2014.
19 Supra, note 12.
CA-G.R. SP No. 00028 page 18
DECISION

there will be an intake structure and three (3) submersible

pumps, she perfunctorily considered the application as being
covered by Category 157.S4 which would not need a
comprehensive study which is the EIS. She did not attempt to
explain the difference between a well and an intake structure.
Notably, the IEE itself categorically stated that the water will be
delivered to TCWD to supplement the latter's requirement for
Tagaytay City; yet in contrast thereto, Ms. Paranada insists,
albeit erroneously, that PTK2 applied only for distribution to
household only, and thereafter, the subject ECC was approved
without an adequate study and worse, without a careful
reading of the IEE itself.

If only to emphasize the importance of the EIS, Section 1

of DENR Administrative Order No. 30-03 provides that the EIS
system primarily ensures a rational balance between socio-
economic development and environmental protection for the
benefit of present and future generations. Social acceptability
is measured through meaningful public participation, while
environmental impacts shall be identified and addressed
through protection and enhancement measures. For this
purpose to be disregarded, just because there is no statement
that “six wells” would be required, is a travesty. The DENR is
the sole government agency authorized to grant or deny ECCs
and which has the duty to implement the EIS system. It is,
therefore, mandated to conduct a detailed and thorough
evaluation of the project.20 Unfortunately, the DENR was not
able to perform this task in this instance.

Furthermore, it is regrettable to note that the DENR,

NWRB and TCWD were remiss in the performance of their
duties as expounded under Section 26 of the Local
Government Code, to wit –

Section 26. Duty of National Government Agencies in

the Maintenance of Ecological Balance. – It shall be the duty of
every national agency or government-owned or controlled

20 Boracay Foundation, Inc. v. The Province of Aklan, represented by Governor Carlito Marquez,
The Philippine Reclamation Authority, and the DENR-EMB (Region VI), G.R. No. 196870, 26
June 2012.
CA-G.R. SP No. 00028 page 19
DECISION

corporation authorizing or involved in the planning and

implementation of any project or program that may cause
pollution, climatic change, depletion of non-renewable
resources, loss of crop land, rangeland, or forest cover, and
extinction of animal or plant species, to consult with the local
government units, nongovernmental organizations, and other
sectors concerned and explain the goals and objectives of the
project or program, its impact upon the people and the
community in terms of environmental or ecological balance,
and the measures that will be undertaken to prevent or
minimize the adverse effects thereof. (underscoring applied)

Complementary thereto, Section 27 of the same Code

provides that –

Section 27. Prior Consultations Required. – No project or

program shall be implemented by government authorities
unless the consultations mentioned in Sections 2 (c) and 26
hereof are complied with, and prior approval of the
sanggunian concerned is obtained: Provided, That occupants
in areas where such projects are to be implemented shall not
be evicted unless appropriate relocation sites have been
provided, in accordance with the provisions of the Constitution.
(underscoring applied)

In this case, We observed that it was not the

Sangguniang Bayan, but only Mayor Bienvenido Dimero, of
Indang who – by mere letter – signified the non-objection to
PTK2's project. Worse, in Our view, said letter may even be
regarded as deceitful and misleading because it mentioned
therein that the principal beneficiary of PTK2's project is
Indang, not Tagaytay City specifically.

Relative thereto, it has been explained that the projects

encompassed under Sections 26 and 27 of the LGC are “those
that: (1) may cause pollution; (2) may bring about climatic
change; (3) may cause the depletion of non-renewable
resources; (4) may result in loss of crop land, range-land, or
forest cover; (5) may eradicate certain animal or plant species
from the face of the planet; and (6) other projects or programs
that may call for the eviction of a particular group of people
CA-G.R. SP No. 00028 page 20
DECISION

residing in the locality where these will be implemented.”21 The

bulk water supply project between PTK2 and TCWD falls under
this definition. The rivers rely heavily on rainfall and other
natural causes to replenish itself. Mere mortals would be hard-
pressed to replenish these sources should their depletion be
allowed. Mention must be made of the eventual destruction of
the watersheds and river system if seawater from Manila Bay
will be allowed to seep up into lowland Cavite due to want of
downstream flow of fresh water from the higher lands, and
eventually destroy its vegetation and seafood industry, leaving
a big chunk of Cavite without livelihood and several cities
suffering from diminished food supply. There is likewise no
dispute that the giant cloud rat is a critically endangered
species which thrives along the riverbanks of Cavite. It is not
far-fetched to consider that the destruction of the ecosystem,
therefore, would eventually lead to their extinction.

TCWD, as a government-owned or controlled corporation,

cannot escape this law-mandated duty. To be accurate, its
social responsibility cannot be limited to the agreement that it
executed with PTK2. Being an entity involved in water
distribution and having come face to face with the imminent
possibility of water shortage in Tagaytay City, it is expected to
know the hazards of overdrawing water from rivers and the
danger that the other cities and/or towns of Cavite province
would experience once these sources are depleted. It cannot,
therefore, simply wash its hands and place all the blame on
PTK2.

The DENR was apprised of the massive objection of the

townsfolk of Cavite who would be directly affected by the
activities of PTK2 in implementing the project. This has,
thereafter, prompted DENR to take steps to ascertain whether
the ECC conditions have been breached, and which yielded
adverse findings. It then suspended the ECC, but after We
have issued the TEPO. However, as explained above, the
DENR must conduct a deeper and more meaningful evaluation
and decide whether the approval of the ECC without an EIS is

21 Ibid.
CA-G.R. SP No. 00028 page 21
DECISION

acceptable. Consultation with the local residents is absolutely

essential for a study of the impacts of the project in Indang and
other neighboring cities and municipalities of Cavite.

On the part of NWRB, Engr. Charito Menguito admitted22

that they based the water availability of the subject four (4)
rivers on a book entitled Available Water in Philippine Rivers
that was published sometime in 1977. Sadly, the figures
therein are obviously outdated, as these pertain to data
corresponding to the period from 1945 to 1967 which is a half-
century ago. An astonishing revelation that came to fore
during the hearing is that the gage river used as a parallel by
NWRB is Maapon River which is located in Sampaloc, Quezon
and which, as Engr. Mendito admits, is geographically distant
and characteristically different from the subject rivers situated
in Cavite. Climate was considered only insofar as Maapon
River was concerned, and not the climate in Indang, Cavite
where the subject rivers are located. It has not been
convincingly proven that the NWRB had conducted actual
inspection and study of the actual flow of the subject rivers.
Still, it went ahead and increased the water permits for
Lambak and Ikloy Rivers, all based on far-away Maapon River.

For an agency tasked to implement the provisions of the

Water Code of the Philippines, to control and regulate the
country's water resources, and to coordinate and integrate all
policies in relation to water resources development and
management,23 it must assure the constituents that its data
and methodology are relevant and adequate to address the
issues of water use and water shortage. Unfortunately, it will
not be able to sufficiently and meaningfully perform its role if it
merely relies on data that are five (5) decades old on a river
located in far-away province which has a different setting and
topography, and without even factoring in major climatic and
other changes happening within the past few years.

An example of the inadequacy in the grant of the water

22 TSN dated 26 September 2014.

23 Presidential Decree No. 424.
CA-G.R. SP No. 00028 page 22
DECISION

permits is the study conducted by SUWECO and IWD in May

2012. This shows that Lambak river's actual flow is only 312
lps. or 26,956.80 cu. m.; however, the NWRB water permit
allowed the extraction of 270 lps. or 23,328 cu. m. Using the
30% ceiling that even NWRB agrees must be recognized, what
should have been granted must not exceed 93.6 lps. or
8,087.04 cu.m. Meanwhile, Saluysoy river only flows at 59.50
lps. or 5,140.80 cu. m., while the permit granted 45 lps. or
3,888 cu.m. which is again beyond the 30% threshold of
merely 17.85 lps. or 1,542.24 cu.m. More alarming is the rate
for Indang river which only flows at 8.4 lps. or 725.76 cu.m.
NWRB granted a water permit which covers 110 lps. or 9,504
cu.m. that would have absolutely drained the river. NWRB
would not even be able to validly contest these data because it
did not perform its duty and did not make an independent
study of the water flow.

Surely, there is no question that the water needs of

Tagaytay City must be addressed. There is also no question
that all other cities and towns of Cavite equally deserve a
beneficient and continuing flow and supply of water for their
domestic consumption, agricultural, ecological and other
needs. In this regard, We need to stress the absolute need to
conserve, protect and preserve this essential natural resource
in order to balance the present needs of this generation viz-a-
viz the wants of those still to come.

Our Constitution, no less, makes it a state policy to

protect the environment and ensure the right of the people to a
balanced and healthful ecology, and this mandate has been
recognized by the Supreme Court in several cases. 24 It is
absolutely essential, therefore, that everyone must be made
aware and vigilant of this inter-generational responsibility and
allow only a reasonable and sustainable utilization of our
natural resources.

For the record, this judgment should not be understood,

24 Most Rev. Pedro Arigo, et al vs. Scott H. Swift, et al., G.R. No. 206510, 16 September 2014, citing
Oposa v. Factoran, Jr., G.R. No. 101083, 30 July 1993.
CA-G.R. SP No. 00028 page 23
DECISION

nor misconstrued, as a perpetual obstacle to a water

harvesting and/or supply venture involving the subject rivers
in Indang, because the reality is that there is a need to accept
development in a changing world. Rather, We hold that in
treating and processing the application/s, appropriate steps
and correct measures must be followed and pursued to
guarantee that the environment would be safely guarded.
Thus, no water permit or ECC or any other requirement should
be granted or issued without a feasibility study or a concrete
system that would ensure that the inhabitants and
stakeholders of these areas should be consulted and the
ecological concerns should be addressed with the end in view
of affording equitable benefit without doing serious harm to the
environment. One good example is the CEST, Inc. study
submitted by PTK2 that provides for a suitable plan of action.
The study suggested four (4) development alternatives to
optimize the water yield from the rivers. It was also
recommended that a monthly streamflow measurement be
conducted for a period of two (2) years to determine the daily
flows and flow duration curve of the rivers.25 This can be used
by the respondents as a stepping stone towards future water
distribution plans for Cavite. The two (2) years time frame
mentioned therein is a reasonable period for all parties
concerned to re-evaluate their positions to be consistent with
sustainable development to ensure that the earthly resources
will be rationally beneficial for the present generation and for
those yet to come.

As a final note, We are heartened by the published

message of Pope Francis during his recent Philippine visit
calling on world leaders to take a courageous stand to protect
the environment. He emphasized the need to see with the eyes
of faith, the beauty of God's saving plan, the link between the
natural environment and the dignity of the human person. He
decried that man is destroying nature and betraying God's
calling to be stewards of creation. Men must, thus, be
reminded that as such stewards, they are called upon to make
earth a beautiful garden for the human family.

25 Rollo, pp.459-460.
CA-G.R. SP No. 00028 page 24
DECISION

WHEREFORE, premises considered, the NWRB Water

Permit Nos. 022584 to 022587, inclusive, as well as DENR-
ECC ECC-R4A-1304-0210, are ordered CANCELLED and
REVOKED. Respondent PTK2 H20 is enjoined to protect,
preserve, rehabilitate and restore the environment in
accordance with the terms and spirit of the foregoing
judgment, including but not limited to the removal of any and
all structures or earthfill that were built or placed on the
riverbed of Ikloy River, the planting of double the number of
trees that were cut to serve as their substitute, and the like.

The TEPO earlier issued is made permanent, but is

without prejudice to the prerogative of respondent PTK2 to
refile, resubmit, or amend/supplement its application for
conditional/permanent water permit, with all necessary
requirements and appropriate credentials, and public
respondents are similarly enjoined to conduct appropriate and
realistic feasibility studies to ensure equitable distribution of
the available water resources to all the six (6) cities and
seventeen (17) municipalities of Cavite province in a manner
consistent with sustainable development and to strictly adhere
with the proper rules, regulations, and procedure as prescribed
in existing environmental laws and regulations, taking into
serious consideration the relevant findings and observations of
this Court; and finally, all respondents are enjoined to submit
to this Court a report on any material action taken in relation
herewith.

SO ORDERED.

MANUEL M. BARRIOS
Associate Justice
CA-G.R. SP No. 00028 page 25
DECISION

WE CONCUR:

ANDRES B. REYES, JR. PEDRO B. CORALES

Presiding Justice Associate Justice

CERTIFICATION

Pursuant to Section 13, Article VIII of the Constitution, I hereby

certify that the conclusions in the above Decision had been reached
in consultation before the case was assigned to the writer of the
opinion of the Court’s Division.

ANDRES B. REYES, JR.

Presiding Justice
Chairperson, First Division