DENR cancels contract with Masungi Georeserve developer

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The DENR demands Masungi developer Blue Star Construction Development Corporation to vacate the area. Masungi, meanwhile, says the department is 'at fault' and that it is 'confident' of available legal remedies.

MANILA, Philippines – The Department of Environment and Natural Resources (DENR) canceled its 2002 contract with Blue Star Construction Development Corporation — the developer of popular ecotourism site Masungi Georeserve in Rizal — due to failure to execute contracted government housing project and other violations.

“Dito po sa napirmahang letter of cancelation ng ating department, sinasabi natin na isa sa mga kontrata rito (In the letter of cancelation signed by our department, we are saying that one of the contracts), which is the 2002 Supplemental Agreement, is canceled, and we are demanding the Blue Star to vacate the area,” said Norlito Eneran, DENR assistant secretary for legal affairs and enforcement, on Friday, March 7.

Blue Star is expected to leave the property 15 days after receipt of the cancelation letter sent Friday.

The 2002 contract covers the Discovery Trail of the georeserve. The trail takes tourists through the famed Sapot ni Ric, picturesque karst formations, and rope bridges.

According to government findings, Blue Star’s violations are:

• Imposition of fees not included in Masungi’s eco-tourism plan
• Construction of park facilities without necessary permits
• Fencing of a portion of government property
• “Very restrictive access” to DENR officials
• Noncompletion of housing project

Masungi Georeserve Foundation Incorporated (MGFI) said Friday they have not yet received the DENR’s letter but are “confident of the legal remedies available to us.”

Blue Star first entered into a joint venture agreement with the government in 1997 to build 5,000 housing units for government employees. The original contract covers a 130-hectare public property. In 2002, the parties expanded the contract to 300 hectares for 5,000 additional housing units.

According to the DENR, Blue Star got a supplemental agreement “despite no substantial housing units built on the original 130 hectares awarded,” and no bidding process occurred.

In response, the MGFI said, “This expansion is based on the provisions of law, which allows a government project to be expanded or extended without additional bidding under certain conditions.”

The contract that the DENR canceled is different from the 2017 contract that covers over 2,700 hectares in another area in Rizal (also known as the reforestation site Masungi Geopark).

“Let us be clear — it is the DENR who is at fault here,” MGFI said. “It has stubbornly refused to carry out its contractual obligation to clear the area of large-scale illegal occupants, liens, and encumbrances, causing delays to the project and significant injury to its private sector partner.”

Eneran confirmed there are cases against regional environment officials linked to the housing project before the Office of the Ombudsman.

“In fact, may mga investigations na kami against our own people,” said Eneran. “May mga Ombudsman cases na.” (In fact, we have investigations against our own people. There are already Ombudsman cases.)

Once MGFI clears the area, Eneran said the DENR could “take control of this area” as well as other agencies with rights over the property. About 270 hectares of the subject land are titled under the Bureau of Corrections.

“No one has monopoly when it comes to the protection and conservation of the environment,” Eneran said in a mix of Filipino and English. He added that “no one is above the law.”

MGFI also did not mince words in its initial reaction to the cancelation: “It is apparent that this case is part of a larger, more insidious effort to weaken environmental protection, silence advocates, and clear the path for selfish commercial interests to exploit our natural resources. We will fight not just in defense of Masungi but in defense of environmental justice for all.”

Masungi Georeserve and its officers and rangers are internationally acclaimed for conservation efforts in the Upper Marikina Watershed. Their name and story have become synonymous to successful environment protection.

“For over two decades, Masungi and Blue Star have been on the frontlines, defending our forests against land grabbers, illegal quarries, and powerful vested interests,” the foundation said. – Rappler.com