The Department of Environment and Natural Resources (DENR) has terminated its more than 20-year-old contract with Blue Star Construction Development Corporation — the developer of Masungi Georeserve in Rizal – due to concerns over legal compliance and the company’s failure to fulfill the terms outlined in the contract.
In a letter addressed to Ben Dumaling, president of Blue Star Construction and Development Corp. on Friday, March 7, the DENR informed the company of its decision to terminate their 2002 Supplemental Agreement.
“Dito po sa napirmahang letter of cancelation ng ating department, sinasabi natin na isa sa mga kontrata rito, 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.
The 2002 agreement pertains to the Discovery Trail of the georeserve, which guides visitors through iconic attractions such as Sapot ni Ric, stunning karst formations, and rope bridges.
Government findings said that Blue Star’s violations include the 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, providing “very restrictive access” to DENR officials, and the noncompletion of a housing project.
Blue Star is required to vacate the property within 15 days of receiving the cancellation letter issued on Friday.
On Friday, the Masungi Georeserve Foundation Incorporated (MGFI) stated that they had not yet received the DENR’s letter but expressed confidence in the “legal remedies available to us.”
Blue Star initially formed a joint venture agreement with the government in 1997 to construct 5,000 housing units for government employees, covering a 130-hectare public property. In 2002, the agreement was expanded to 300 hectares to accommodate an additional 5,000 housing units.
The DENR noted that Blue Star secured a supplemental agreement despite failing to build a significant number of housing units on the original 130 hectares and without undergoing a bidding process.
“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 MGFI said in response.
“Let us be clear — it is the DENR who is at fault here. 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,” it added. (TCSP)
