G.R. No. 147465 - Metropolitan Manila Development Authority vs. Jancom Environmental Corp.

In 1994, Presidential Memorandum Order No. 202 created an Executive Committee (EXECOM), chaired by the MMDA and CORD-NCR, to oversee BOT implementation of waste-to-energy projects in San Mateo, Rizal and Carmona, Cavite.
Terms of reference required proponents to build municipal solid-waste thermal plants using incineration technology. Eleven entities submitted pre-qualification documents; only three complied (JANCOM, First Philippine International W-E Managers, PACTECH). PBAC recommended these three on July 21, 1995; EXECOM approved on July 26, 1995. Pre-feasibility studies were forwarded to ICC-TB and ICC-CC.

On May 2, 1996, the PBAC held a pre-bid conference, setting a 90-day deadline for bid proposals. JANCOM and First Philippines sought extensions; PACTECH withdrew. JANCOM partnered with ABB to form JANCOM Environmental Corporation; First Philippines partnered with OGDEN.
Post–pre-qualification evaluation declared JANCOM the winning bidder for San Mateo and First Philippines for Carmona on February 12, 1997. On February 27, MMDA Chairman Oreta notified JANCOM of its status as sole complying bidder and formed negotiation teams. Draft BOT contract was prepared and reviewed by the Presidential Task Force on Solid Waste Management.

On December 19, 1997, the BOT contract was signed by JANCOM and the Philippine Government (DENR Secretary Ramos, CORD-NCR Chairman dela Serna, MMDA Chairman Oreta). It was submitted to President Ramos on March 5, 1998, who endorsed it to incoming President Estrada.
The Estrada administration issued Memorandum Order No. 19 (reconstituted EXECOM), passed the Clean Air Act (1999), and ordered the closure of the San Mateo landfill. On November 4, 1999, Chairman Aventajado informed JANCOM that the BOT contract would no longer be pursued; MMDA published a new invitation to bid on February 22, 2000.

JANCOM filed a certiorari petition in RTC Pasig to declare EXECOM’s resolution and MMDA’s new bidding illegal and void. On May 29, 2000, the RTC granted relief in JANCOM’s favor and enjoined MMDA from implementing the new bidding.
MMDA filed a Rule 65 certiorari with the Court of Appeals (CA-G.R. SP No. 59021), obtained a TRO, but on November 13, 2001 the CA dismissed the petition and denied reconsideration. MMDA then filed a Rule 45 petition for review on certiorari with the Supreme Court.

Whether MMDA’s resort to certiorari (Rule 65) instead of an appeal from the RTC’s final decision was proper.
Whether a valid and binding BOT contract existed between the Republic and JANCOM despite (a) absence of the President’s signature, (b) non-compliance with conditions precedent, and (c) an allegedly invalid notice of award.