City gov’t to buy disputed P36-M Sanitary Camp lot

By Jordan G. Habbiling

BAGUIO CITY -- The city government will purchase property located at North Sanitary Camp following confirmation of memorandum of agreement between the city government and the Power Sector Assets and Liabilities Management (PSALM) by the Baguio City Council.
    The said property consists of seven parcels of land with a total lot area of 6,332 sqm.
    It is where the Baguio Sewage Treatment Plant (BSTP) is located.
    Acquisition of said land has been stalled by a long-standing case filed by the National Power Corp. against the city government before the Regional Trial Court Branch 61 for the recovery of possession of real properties with damages including back rentals.
    The case docketed as Civil Case No. 6801 is still pending in court.
     Earlier, the Baguio City Council and the City Legal Office attempted to convince NPC to move for the dismissal of the case, to no avail.
    The city council also urged PSALM to delete a provision in the MOA that states that the sale is without prejudice to the claim of the NPC for back rentals covering years prior to PSALM’s decision to sell the property, again, to no avail.
    During the city council’s regular session Jan. 16, Councilor Betty Lourdes Tabanda objected provision of the MOA requiring the Baguio City Council to pass a resolution stating that the city government “has no more claims, causes of action, charges, assessments, and other collectibles from PSALM upon the execution of the deed of transfer and conveyance.”
    Councilor Peter Fianza said these “claims” and “collectibles” included real property taxes collected by the city government over the property.
    Tabanda said the continuous claim of NPC for back rentals from the city government suggests that they had not dropped their claim for ownership over the property.
     “If they own the property, why should they not be subjected to real property tax? It is not fair on the part of the city. I do not like the city to be at a disadvantage,” Tabanda said.
    Tabanda said she was in favor of the purchasing the property but not the waiving of all claims and collectibles.
By virtue of Republic Act No. 9136 (Electric Power Industry Reform Act of 2001 or EPIRA Law), PSALM Corporation was created to take ownership of all existing generation assets, liabilities and Independent Power Producer (IPP) contracts, real estate and all other disposable assets of the NPC, among others, and to manage the orderly sale, disposition, and privatization of said assets.
    In pursuit of its mandate, PSALM intends to sell and transfer the said property “in an optimal and for the best interest of the government.”
    During a council forum on March 28, 2022, Asst. City Legal Officer Melchor Carlos Rabanes mentioned two court orders from the RTC stating that the NTC would move for the dismissal of the case once the transfer of the property was finalized and submitted. The court orders were archived in February 2022. 
     “Once we buy the property, the case should already be dismissed,” Rabanes said.