GREATER METROPOLITAN MANILA SOLID WASTE MANAGEMENT

COMMITTEE and the METROPOLITAN MANILA DEVELOPMENT

AUTHORITY vs. JANCOM ENVIRONMENTAL CORPORATION and
JANCOM INTERNATIONAL DEVELOPMENT PROJECTS PTY. LIMITED
OF AUSTRALIA
G.R. No. 163663 June 30, 2006
FACTS:
President Fidel Ramos executed Memorandum Order No. 202 in 1994,
which created an Executive Committee to oversee and develop waste-to-
energy projects for the waste disposal sites in San Mateo, Rizal and
Carmona, Cavite under the Build-Operate-Transfer (BOT) scheme.
Respondent Jancom International Development Projects Pty. Limited of
Australia was one of the bidders for the San Mateo Waste Disposal Site.
JANCOM was declared by the executive Committee as the sole complying
bidder for the San Mateo Waste Disposal Site. As such a contract fro the
BOT implementation of the Solid Waste Management Project for the Rizal
site was entered between Greater Metropolitan Manila Solid Waste
Management Committee (GMMSWMC) and the Metropolitan Manila
Development Authority (MMDA) and JANCOM. The contract was
submitted to the President Ramos for approval who subsequently endorsed
the same to incoming President Joseph Estrada.
Due to the clamor of the residents of Rizal, the administration ordered for
the closure of the San Mateo landfill.
Because of this, GMMSWMC adopted a resolution not to pursue the
contract with JANCOM. The basis for which is the passage of Republic Act
8749, of the Clean Air Act of 1999, the non-availability of the San Mateo
site because it can only accommodate 3000 tons of trash everyday while
the expected outcome to wastes to be accumulated daily was 6000 tons,
and the costly tipping fees.
Thus, JANCOM filed with the RTC a petition to declare GMMSWMC
resolution and the acts of the MMDA calling for the bids and authorizing the
forging of a new contract for the Metro Manila waste management as illegal
and unconstitutional, and to enjoin said agencies in making another award.
The RTC ruled in favor of JANCOM, this was affirmed by the CA. The
Supreme Court declared the contract as valid and has been perfected,
although the same cannot be implemented without the approval by the
President.
Consequently, JANCOM and MMDA made negotiations to alter certain
provisions of the contract which were embodied in a draft amended
agreement, it did not contain the signature of the parties. JANCOM then
filed with the RTC an Omnibus Motion for a writ of execution, this was
challenged by GMMSWMC nd MMDA. Still the CA affirmed the RTC.
ISSUE:
Whether or not the contract is ineffective and cannot be implemented
unless the same has been approved by the President.
HELD:
Yes. The contract remains to be ineffective until approved by the President.
RULING:
Only an absolute of a definite offer manifests the consent necessary to
perfect a contract. The draft entered into by the MMDA and JANCOM only
shows that they have not pursued beyond the preparation stage. This is the
period from the start of the negotiations until the moment just before the
agreement of the parties. Unaccepted offers and proposals remain as such
and cannot be considered as binding commitments.
As to the necessity, expediency, and wisdom of the contract, these are
outside the realm of judicial adjudication. These are matters exclusively for
the President to decide on. As such, the prior approval of the President
needs to be secured first.