The rental rates relative to the lease between Batangas Land Company Inc. and Chevron Philippines Inc. are governed by the provisions of LOI No. 276 signed by former President Ferdinand Marcos, according to the Department of Trade and Industry.
It said the lease contract, signed in 1975 covering the first 25 years, already specified the rental rates for the next 25 years. It said for the renewal of the lease, BLCI negotiated for a higher lease payment than the rates provided under the LOI and the first lease contract.
The National Development Company board, which the DTI chairs and has Department of Finance as one of the members, already approved the dissolution of BLCI by 2021 and the consolidation of ownership of BLCI lands in favor of the government/NDC.
The BLCI shareholders and directors, in line with the NDC board directive, also approved the dissolution of BLCI.
“With the consolidation of ownership of the BLCI lands, any potential use for the property including lease arrangements shall be reviewed by the government,” the DTI said.
BLCI is the joint venture corporation formed by NDC and Chevron as a result of the termination of the Laurel-Langley Agreement in 1975.