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Hon. Ramon Jesus P. Paje V. Hon. Teodoro A. Casiño G.R. No. 207257/ G.R. No. 207256/ G.R. No. 207282/ G.R. No. 207366 February 3, 2015 Facts

The Supreme Court ruled that the coal-fired power plant project located in the Subic Bay Freeport Zone did not require prior approval from local government units as mandated by Section 27 of the Local Government Code. While Section 27 ordinarily requires such approval for projects that could cause pollution, the Court held that the Subic Bay Metropolitan Authority's power to approve investments and enterprises in the economic zone, as granted by Republic Act 7227, took precedence over objections raised by the local sanggunians. As the economic zone authority had already approved the project, involving the Department of Energy and environmental regulators, compliance with the sanggunian approval process was not necessary in this case.

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43 views

Hon. Ramon Jesus P. Paje V. Hon. Teodoro A. Casiño G.R. No. 207257/ G.R. No. 207256/ G.R. No. 207282/ G.R. No. 207366 February 3, 2015 Facts

The Supreme Court ruled that the coal-fired power plant project located in the Subic Bay Freeport Zone did not require prior approval from local government units as mandated by Section 27 of the Local Government Code. While Section 27 ordinarily requires such approval for projects that could cause pollution, the Court held that the Subic Bay Metropolitan Authority's power to approve investments and enterprises in the economic zone, as granted by Republic Act 7227, took precedence over objections raised by the local sanggunians. As the economic zone authority had already approved the project, involving the Department of Energy and environmental regulators, compliance with the sanggunian approval process was not necessary in this case.

Uploaded by

Raymond Cheng
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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8. Hon. Ramon Jesus P. Paje V. Hon. Teodoro A.

Casio
G.R. No. 207257/ G.R. No. 207256/ G.R. No. 207282/ G.R. No. 207366
February 3, 2015
Facts:
In February 2006, Subic Bay Metropolitan Authority (SBMA) and Taiwan Cogeneration
Corporation (TCC) entered into a Memorandum of Understanding about building a power plant
in Subic bay.
TCC undertook to build the power plant on the 20 hectares of land at Sitio Naglatore, Mt.
Redondo, Subic Bay Freeport Zone (SBFZ).
On June 2008, TCC assigned all tis rights and interests to Redondo Peninsula Energy, Inc. (RP
Energy).
On August 27, 2008, the Sangguniang Panglungsod of Olongapo City issued in a Resolution the
city governments objection to the coal-fired power plant as an energy source. They urged RP
Energy to consider safer alternative sources of energy for Subic bay. Liga ng mga Barangay of
Olongapo City issued a resolution also expressing its strong objection to the coal-fired power
plant as an energy source.
Casio argued that the project cannot be constructed and operated until after prior approval of the
sanggunian requirement (Section 27 of the Local Government Code) is complied with.
However, RP Energy argues that prior approval of the concerned sanggunian requirement
(Section 27 of LGC is inapplicable to the project because it is located within the Subic Special
Economic Zone.
Section 27 of the LGC: Prior Consultations Required- No project or program shall be
implemented by government authorities unless the consultations mentioned in Sections 2 (c) and
26 hereof are complied with, and prior approval of the sanggunian concered is obtained.
Issue: Whether compliance with the approval of the concerned sanggunian requirement under
the Local Government Code is necessary prior to the implementation of the power plant project
Held:
NO. The prior approval of the concerned sanggunian requirement is an attribute of the autonomy
granted to and enjoyed by the LGUs under the Constitution; however, in the case at bar, the two
requisites under Section 27 are already present. These are 1) the planning and implementation of
the subject project involves the Department of Energy, DENR, and SBMA; and 2) the subject
project may cause pollution, climatic change, etcetera. Ordinarily, Section 27 of the LGC should
apply. However, RA 7227, which provided the Subic Bay Metropolitan Authority the broad
powers to accept any local or foreign investment, business, or enterprise. The Court finds the
implementation of the subject project does not need prior approval of the concerned sanggunians
as required by Section 27 of the LGC, because the Subic Bay Metropolitan Authoritiys decision
to approve the project prevails over the objections of the sangguanians of the LGUs, by virtue of
the provisions and powers granted by RA 7227.

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