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Prepared by: Mica Marie J. ValenzuelaG.R. No. 164527August 15, 2007Chavez vs. National Housing Authority FactsOnMarch 1, 1988, then President Corazon C. Aquinoissued Memorandum Order No. (MO) 161approving and directing the implementation of the Comprehensive and Integrated MetropolitanManila Waste Management PlanPursuant to MO 161, Pursuant to MO 161-A, NHA prepared the feasibility studies of the Smokey Mountain low-cost housing project which resulted in the formulation of the Smokey Mountain Development and Reclamation Project (SMDRP; the Project).During that time, Smokey Mountain, a wasteland in Tondo, Manila, was being made residence of many Filipinos living in a subhuman state.RA 6957 (Build-Operate-Transfer Law) was passed on July 1990 declaring the importance of private sectors as contractors in government projects.Thereafter, Aquino proclaimed MO 415 applying RA 6957 to SMDRP, among others. The same MO also established EXECOM and TECHCOM in the execution and evaluation of the plan, respectively, to be assisted by the Public Estates Authority (PEA).Notices of public bidding to become NHAs venture partner for SMDRP were published in newspapers in 1992, from which R-II Builders, Inc. (RBI) won the bidding process.President Ramos issuedProclamation No. 39 on September 9, 1992 October 7, 1992, President Ramos authorized NHA to enter into a Joint Venture Agreement with RBIMarch 19, 1993, the NHA and RBI entered into a Joint Venture Agreement (JVA) for the development of theSmokeyMountaindumpsite and the reclamation of the area across R-10 based on Presidential Decree No. (PD) 757February 21, 1994 Amended and Restated Joint Venture Agreement(ARJVA) which delineated the different phases of the Project.ARJVA :The original 3,500 units of temporary housing were decreased to 2,992. The reclaimed land as enabling component wasincreased from 40 hectares to 79 hectares, which was supported by the issuance of Proclamation No. 465 by President Ramos. Provided 119-hectare land as an enabling component for Phase II of the project.Under the JVA, the project involves the clearing of Smokey Mountain for eventual development into a low cost housing complex and industrial/commercial site with reclamation of the area directly across {R-10} to act as the enabling component of the project. RBI is expected to fully finance the development of Smokey Mountain and reclaim 40 hectares of the land at theManila Bay Area as contained in Proclamation No. 39. The latter together with the commercial area to be built on Smokey Mountain will be owned by RBI as enabling components. If theproject is revoked or terminated by the Government through no fault of RBI or by mutual agreement, the Government shall compensate RBI for its actual expenses incurred in the Project plus a reasonable rate of return not exceeding that stated in the feasibility study and in the contract as of the date of such revocation, cancellation, or termination on a schedule to be agreed upon by both parties.Phase I of the project involves clearing, leveling-off the dumpsite, and construction of temporary housing units for the current residents on the cleared and leveled site.Phase II involves the construction of a fenced incineration area for the on-site disposal of the garbage at the dumpsite.June 23, 1994The Legislature passed the Clean Air Act.The Act made the establishment of an incinerator illegal andeffectively barred the implementation of the plannedincinerator project under Phase II.Special Patents were issued in favor of NHA conveying an additional areas.August 1, 1998, the NHA granted RBIs request to suspend work on theSMDRPNovember 1998, President Estradaissued Memorandum Order No. 33 reconstituting the SMDRP EXECOMAugust 27, 2003, the NHA and RBI executed a Memorandum ofAgreement (MOA) whereby both parties agreed to terminate the JVA and othersubsequent agreementsFebruary 21, 1994 Amended and Restated Joint Venture Agreement(ARJVA) which delineated the different phases of the Project.ARJVA :The original 3,500 units of temporary housing were decreased to 2,992. The reclaimed land as enabling component wasincreased from 40 hectares to 79 hectares, which was supported by the issuance of Proclamation No. 465 by President Ramos. Provided 119-hectare land as an enabling component for Phase II of the project.Under the JVA, the project involves the clearing of Smokey Mountain for eventual development into a low cost housing complex and industrial/commercial site with reclamation of the area directly across {R-10} to act as the enabling component of the project. RBI is expected to fully finance the development of Smokey Mountain and reclaim 40 hectares of the land at theManila Bay Area as contained in Proclamation No. 39. The latter together with the commercial area to be built on Smokey Mountain will be owned by RBI as enabling components. If theproject is revoked or terminated by the Government through no fault of RBI or by mutual agreement, the Government shall compensate RBI for its actual expenses incurred in the Project plus a reasonable rate of return not exceeding that stated in the feasibility study and in the contract as of the date of such revocation, cancellation, or termination on a schedule to be agreed upon by both parties.Phase I of the project involves clearing, leveling-off the dumpsite, and construction of temporary housing units for the current residents on the cleared and leveled site.Phase II involves the construction of a fenced incineration area for the on-site disposal of the garbage at the dumpsite.June 23, 1994The Legislature passed the Clean Air Act.The Act made the establishment of an incinerator illegal andeffectively barred the implementation of the plannedincinerator project under Phase II.Special Patents were issued in favor of NHA conveying an additional areas.August 1, 1998, the NHA granted RBIs request to suspend work on theSMDRPNovember 1998, President Estradaissued Memorandum Order No. 33 reconstituting the SMDRP EXECOMAugust 27, 2003, the NHA and RBI executed a Memorandum ofAgreement (MOA) whereby both parties agreed to terminate the JVA and othersubsequent agreements