May 19, 1998
DAR OPINION NO. 60-98
Mr. Thomas L. Agtarap
Vice-President
Project Management and Eng'g. Services
National Power Corporation
Cor. Quezon Avenge and Agham Road
Diliman, Quezon City
Dear Vice-President Agtarap:
This refers to your letter dated 18 March 1998 requesting from this Office an exemption from the land conversion permit of landholdings to be acquired by National Power Corporation (NPC) in the exercise of the latter's right to eminent domain.
It is the opinions of VP-General Counsel A.L. Pangcog that landholdings acquired by NPC, a Government-Owned and Controlled corporation, thru the exercise of its right to eminent domain shall be exempt from Conversion Clearance since the intention for which said landholdings has been expropriated is for public use and public purpose. He further contends that permits/clearances are required only to conversion or reclassification submitted by landowners or tenant beneficiaries but not to lands taken by the government for public use or purpose.
We agree with, the above position posed by VP-General Counsel of the NPC pursuant to the ,Supreme Court, Ruling in the case of the Province of Camarines Sur vs. Court of Appeals, 222 SCRA 173. It has to be established; however, that the expropriation is indeed for public use and that the subject agricultural lands are not to be owned by the National Power Corporation and/or, its partner-entity in their proprietary capacity actually and primarily intended for profit or pecuniary purposes, otherwise, the project partakes of the nature of a private endeavor where the provisions of DAR Administrative Order No. 7, Series of, 1997 will apply. Item No. IV (c) of said guideline provides:
"IV. Who may apply for conversion:
xxx xxx xxx
c) Government agencies, including government owned or, controlled corporations."
Please find attached a copy of the aforementioned guideline for your further information and clarification.
Thank you for communicating with us and we hole to have clarified a matter with you.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning