CYBER Bay Corp. is set to receive reduced compensation from the Philippine Reclamation Authority (PRA) to settle the cumulative claims of the Cyber Bay group in connection with a joint venture project to reclaim a 750-hectare piece of land along Manila Bay.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, Cyber Bay said that its wholly owned subsidiary Central Bay Reclamation and Development Corp. and the PRA entered into a compromise agreement on their longstanding issue over a joint project to reclaim a portion of land along Manila Bay.
Cyber Bay had originally claimed a total of P11 billion as reimbursement from the incurred costs of the project. The amount was reduced to P1 billion under the recent compromise agreement.
Under the deal — which will take effect upon approval by the Commission on Audit (COA) — Cyber Bay shall no longer claim any amount which was accrued during the project undertaking or make any future claims arising in connection with the amended joint venture.
“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 December 22, 2015,” Cyber Bay said.
The previous claim of P11 billion represented the accrued costs on the Cyber Bay project, which was put on hold after the company had a legal battle with the government on the ownership of the land to be reclaimed.
In 2002, the Supreme Court ruled that the joint venture contract between Central Bay and PRA was illegal as it violated the restrictions on the sale of government land to private entities without going through proper bidding.
Cyber Bay was incorporated in 1989 to engage in real estate development, except real estate subdivision, and reclamation. It was formerly named First Lepanto Corp., then changed its name to Guoco Land (Philippines) Inc. in 1994, and then to Centennial City Inc. in 1996, before the latest corporate name change to Cyber Bay in 2000.