The Clark Development Corporation (CDC) has emerged victorious in a legal dispute with Metro Clark Waste Management Corporation (MCWMC) after the Regional Trial Court (RTC) of Capas, Tarlac, denied MCWMC’s Petition for Mandamus. This ruling, handed down by Presiding Judge Sarah Vera Delos Santos on December 18, 2024, underscores CDC’s commitment to enforcing its regulatory and contractual policies in the Clark Special Economic Zone.
At the core of the dispute lies MCWMC’s expired lease agreement and its bid to renew its Authority to Operate (ATO). The court’s decision clarified that the waste management company lacked a “clear and unmistakable right” to such a renewal. This judgment affirms CDC’s position: expired agreements and failure to meet renewal criteria are legitimate grounds for ending operations.
This development follows a Temporary Restraining Order (TRO) issued earlier this year to halt CDC actions that might disrupt MCWMC’s activities. However, the court ultimately rejected the Writ of Preliminary Injunction sought by MCWMC, citing insufficient justification. This win for CDC emphasizes the importance of adherence to due process and underscores the agency’s authority to manage agreements that align with public interest and environmental governance.
Meanwhile, a related case reached the Court of Appeals (CA), highlighting further complexities in this legal saga. On December 16, 2024, the CA issued a TRO against an earlier Writ of Preliminary Injunction from RTC Capas under Judge Ronald Leo Haban. This Writ had barred the eviction of MCWMC from the Kalangitan Sanitary Landfill site—a 100-hectare property under CDC’s jurisdiction.
The CA’s decision was prompted by arguments from CDC, Bases Conversion and Development Authority (BCDA), and CDC President and CEO Agnes VST Devanadera. They contended that RTC Capas had overstepped its jurisdiction, as the termination of a Build-Operate-Transfer (BOT) contract with the National Government should fall under the purview of the Supreme Court.
This TRO, effective for 60 days, halts further proceedings in the RTC and prevents disruption to CDC and BCDA’s plans for the landfill site, which is crucial to New Clark City’s development. Moreover, the CA ordered a P5 million bond to ensure potential damages to MCWMC are covered if the TRO is later deemed unwarranted.
The cases underscore the delicate balance between environmental management, contractual obligations, and the rule of law. For CDC, these rulings are significant not only as a legal triumph but also as a reaffirmation of its role in safeguarding public resources and interests.
As the legal processes unfold, the broader implications of these decisions will undoubtedly shape policies on public-private partnerships and governance in economic zones. For now, CDC’s legal wins send a strong message: expired agreements and non-compliance will not be tolerated, no matter the scale of the stakeholders involved.