DENR cancels Masungi park developer contract

The Department of Environment and Natural Resources (DENR) has canceled its joint venture agreement with a private contractor and developer of the popular Masungi Georeserve for the establishment of a housing complex within the protected forest area in Tanay, Rizal.

- BELLA CARIASO

At a press conference yesterday, DENR Assistant Secretary for legal affairs Norlito Enaran announced the cancellation of the department’s contract with Blue Star Construction Development Corp. and ordered the firm and the family controlling it to vacate the reservation area within 15 days.

Blue Star had been tapped to undertake the construction of 5,000 housing units for government employees within a 300-hectare forest area in Masungi.

In its decision, the DENR cited Blue Star’s reported contract violations, including the lack of required presidential proclamation allowing the housing project, absence of document to prove that the proposed construction went through regular procurement or bidding process, and failure to deliver the agreed-upon 5,000-unit garden cottages housing project within five years from signing of the contract on Nov. 15, 2002.

The DENR informed Blue Star owner and Masungi Georeserve proponent Ben Dumaliang of the reported contract breach in a letter. The DENR formed a special committee in July 2019 to review the 2002 contract.