Shahira Karla R.

Belandres

Constitutional Law II

Francisco I. Chavez vs. Public Estates Authority and Amari Coastal Bay Development Corporation

G.R. No. 133250 July 9, 2002

This is a Petition for Mandamus with a prayer for a writ of preliminary injunction and a
temporary restraining order filed by Petitioner Francisco I. Chavez. This petition seeks to compel Public
Estates Authority (PEA) to disclose all facts on transactions with Amari Coastal Bay Development
Corporation (Amari) to reclaim portions of Manila Bay. Furthermore, it seeks to enjoin PEA from signing
a new agreement with AMAri involving such reclamation.

Facts:

Respondent Public Estates Authority (PEA), a wholly government-owned and –controlled

corporation, is the primary implementing agency of the National Government to reclaim foreshore and
submerged lands of the public domain. As President Corazon Aquino issued a Special Patent, the
Register of Deeds of the Paranaque, in April 1988, issued certificates of title, in the name of PEA,
covering three reclaimed islands known as the Freedom Islands having a total land area of 157.841
hectares located at the southern portion of the Manila-Cavite Coastal Road, Paranaque City. 

Respondent PEA entered into a Joint Venture Agreement (JVA) with AMARI, a private
corporation, to develop the Freedom Islands. The JVA also required the reclamation of an additional 250
hectares of submerged areas surrounding these islands to complete the configuration in the Master
Development Plan of the Southern Reclamation Project-Manila Cavite Coastal Road Reclamation Project.
The JVA was later amended giving AMARI an option to reclaim an additional 350 hectares of submerged
area. It should be noted that part of the consideration for AMARI’s work is the conveyance of 70% of the
total net usable reclaimed area – equivalent to 367.5 hectares, title of which will be in AMARI’s name.

Issue:

Whether or not AMARI can acquire and own under the Amended JVA 367.5 hectares of
reclaimed foreshore and submerged areas in Manila Bay

Held:

No. AMARI as a private corporation cannot acquire the reclaimed Freedom Islands, though
alienable lands of the public domain, except by lease, as provided under Section 3, Article XII of the
Constitution. The still submerged areas in Manila Bay are inalienable lands of the public domain; as such,
they are beyond the commerce of man, as provided under Section 2, Article XII of the Constitution.

The assignment to PEA of the ownership and administration of the reclaimed areas in Manila
Bay, through President Aquino’s actual issuance of a special patent covering the Freedom Islands, is
equivalent to an official proclamation classifying the Freedom Islands as alienable or disposable lands of
the public domain. A declaration stating that the Freedom Islands are no longer needed for public
service is further constituted thus making Freedom Islands as alienable or disposable lands of the
public domain, open to disposition or concession to qualified parties. Moreover, mere reclamation of
foreshore and submerged areas by PEA does not convert these inalienable natural resources of the State
into alienable or disposable lands of the public domain. There must be a law or presidential
proclamation officially classifying these reclaimed lands as alienable or disposable and open to
disposition or concession. These reclaimed lands cannot be classified as alienable or disposable if the
law has reserved them for some public or quasi-public use.

Lastly, the petition id granted and respondents PEA and Amari are permanently enjoined from
implementing amended JVA which is declared null and void.