Cyberbay Corp. has sealed a compromise agreement with the government over a failed reclamation project along Manila Bay.
Cyberbay said in a stock exchange filing Monday that its wholly owned subsidiary, Central Bay Reclamation and Development Corp., had entered into a compromise deal with the Philippine Reclamation Authority (PRA) on Oct. 14, 2016.
The agreement was aimed at settling a long-running legal dispute that erupted between CyberBay and the government over ownership of the land.
Cyberbay shares jumped 22.22 percent to P0.66 per share on Monday.
Cyberbay said a claim of P1.03 billion would be settled through the transfer of a portion of PRA’s reclaimed land to Central Bay Reclamation and Development’s “qualified assignee.”
According to the company, the agreement “shall take force and effect upon approval by the Commission on Audit and the issuance of the COA of an Order of Judgment to dismiss the money claim of Central Bay in the case docketed as COA CP Case No. 2010-350.”
Moreover, it would bar any future claims arising from or in connection with an amended joint venture agreement dating back to March 30, 1999.
The legal tussle also put on hold Cyberbay’s joint venture with the PRA. That led the company to suspend all works and negotiations due to the decision of the Supreme Court decision nullifying the joint venture agreement.
CyberBay, in Nov. 2009, sought initial payment from the PRA for “the initial payment, representing all costs, losses, liabilities, and expenses incurred” by Central Bay Reclamation and Development.
Cyberbay made fresh news in 2014 following an announcement by San Miguel Corp. president Ramon S. Ang that he was proposing that government build a $10 billion airport on reclaimed land along Manila Bay.
Ang said the new airport, which he planned to propose anew to President Duterte, would be located near the project of CyberBay.
SMC’s Manila Bay airport would initially handle 75 million passenger a year, which can be increased to 100 million, briefing materials from the conglomerate showed. The Ninoy Aquino International Airport is operating beyond its capacity at 36.7 million passengers last year.
Ang said the new airport would have four runways and end air traffic congestion for at least the next three decades.
SMC’s proposal covered other infrastructure projects like a proposed 15-kilometer Airport Expressway linking Fort Bonifacio, Ortigas and Eastwood, with alternative routes to Makati City.