Cyber Bay Corp. and the Philippine Reclamation Authority signed a compromise agreement to end their dispute over the controversial Manila Bay reclamation project.
Cyber Bay said in a disclosure to the stock exchange that under the compromise agreement, it would receive a portion of reclaimed land from PRA as settlement for its P1.027 billion worth of claims.
The announcement lifted the stock of Cyber Bay, which is now controlled by businessman Ramon Ang, by 22.2 percent Monday to close at P0.66.
“The money claim of P1.027 billion shall be settled through a conveyance of a portion of the PRA reclaimed land to Central Bay’s qualified assignee, as previously approved by the stockholders’ of the company during its annual stockholders’ meeting held on Dec. 22, 2015,” Cyber Bay said.
“The compromise agreement shall take force and effect upon approval by the Commission on Audit and the issuance of COA of an order of judgment to dismiss the money claim of Central Bay in the case docketed as COA CP Case No. 2010-350 and shall bar any future claims arising from or in connection with the amended joint venture agreement dated March 30, 1999,” it said.
The compromised agreement was signed by Cyber Bay’s wholly-owned subsidiary, Central Bay Reclamation and Development Corp. and PRA, as assisted by the Office of the Government Corporate Counsel on Oct. 14.
Cyber Bay has been pursuing its claims with the PRA for the reimbursement of all related costs related to the controversial 750-hectare Manila Bay reclamation project worth nearly P11 billion.
The P11-billion claim represents all costs, losses, liabilities and expenses incurred by Central Bay.
Central Bay entered into joint venture with then Philippine Estates Authority (now known as Philippine Reclamation Agency) to reclaim 750 hectares of land along Manila Bay and to develop an integrated and comprehensive urban township that is envisioned to be a 21st century metropolis.
The Supreme Court in 2002 declared as void the joint venture agreement, saying the transfer of ownership of land from PEA to Central Bay (Amari Coastal Development Corp.) was unconstitutional.
The group then filed a motion for re-deliberation ib the grounds that PEA was created and granted power to reclaim land and to own, develop, dispose and sell these reclaimed lands to third parties, whether private corporations or individuals.
The Supreme Court in 2004 denied its motion for re-deliberation but ordered PEA to reimburse the cost incurred by Central Bay.