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Administrative Order No. 397
ADMINISTRATIVE ORDER NO. 397
Section 1. The COP/APT shall recognize PEA’s assumption of PNCC’s obligations with PNB amounting to P788.820 Million as provided under the MOA dated 29 December 1981. The corresponding interests and penalties which may have accrued thereon from the date of PEA’s assumption of the obligations are deemed to have been assumed by them and to be converted as NG equity in PEA.
Sec. 2. The P43.593 Million receivable balance of PNCC from PEA representing the unpaid cash portion of the MOA dated 29 December 1981 shall be assigned to APT by PNCC as payment of its obligations to the NG.
Sec. 3. The Lot 6 of the Financial Center Area consisting of 129,548 sq. m. covered by Certificates of Pledge Nos. 2 and 3 issued by DPWH under their Contract of 20 November 1973 and still titled in the name of the Republic of the Philippines under TCT No. 34997, shall be titled in the name of PNCC. For this purpose, PNCC, PEA, DPWH, and COP-APT shall jointly coordinate to effect the titling as mandated hereon.
Sec. 4. An excess of 246,931 sq. m., more or less, of the reclaimed land under the First Neighborhood Unit (FNU) ceded by PEA to Marina Properties Corporation (MPC) without any indemnity pursuant to LOI 1390 shall be applied as settlement of PNCC’s obligations with the NG based on the property’s fair market value without prejudice to NG’s right for payment from NDC;
Sec. 5. Pursuant to Memorandum Order dated 8 June 1995, the PEA shall purchase PNCC’s preferred option in the amount of P100 Million under Section 9 of the PEA-CDCP (now PNCC) MOA dated 29 December 1981 for the remaining undisposed portion of the reclaimed land with an area of 158 hectares more or less, located at the Southern Sector of MCCRRP subject of PNCC MOA dated 29 December 1981. The payment in cash shall be made out of the project cash flows from the development of the Southern Sector of MCCRRP and the payment within two (2) years from the approval by the President of the re-negotiated Joint Venture Agreement for the Project.
Sec. 6. The resulting obligations of PEA as a consequence of all the foregoing shall be converted into equity of the NG in the said entity.
Sec. 7. The PNCC shall waive any and all future claims against PEA in relation to the aforesaid PEA-PNCC MOA and the MCCRRP Contract except the claim of PNCC on the R-1 Project which shall be paid by PEA upon determination of the actual amount due to PNCC.
Sec. 8. The DOF, COP, APT, PEA, PNCC and all other government agencies concerned shall execute all the documents necessary to implement this order.
Sec. 9. This order takes effect immediately. DONE in the City of Manila, this 13th day of May, 1998, in the year of our Lord, Nineteen Hundred and Ninety-eight. (Sgd.) FIDEL V. RAMOS President of the Philippines By the President: (Sgd.) ALEXANDER P. AGUIRRE Executive Secretary