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ATTY. GLENN P: OLBES, ; ‘Arrorney-Ar-Law ably Lot 2, Blk. 4 Glendale Drive, Glendale Subd., Bray. Dolores, Taytay, Rizal e-mail: golbeslaw@ ; mobile: 09175017555 March 31, 2016 ATTY. PATERNO L. ESMAQUEL FLORENTINO & ESMAQUEL LAW OFFICE Unit 1706, 17' Fir., Prestige Tower Condominium F. Ortigas, Jr., Rd., Ortigas Center, Pasig City Re: REPLY TO LETTER DATED 01 MARCH 2016 FURNISHED TO CLIENT ARMANDO L. DIAZ Dear Atty. Esmaquel, ‘This pertains to my client's response to your letter addressed to the Department of Energy (DOE), dated March 1, 2016 which you furnished him a copy, concerning the proposal of DOE to acquire your client's property for the right-of-way in the ‘Hydropower Project in Majayjay, Laguna. While we respect your opinion and position against that project, we cannot remain passive however, on false and misleading information which your camp has been trying to feed in regarding the same, since my client is directly prejudiced by such an irresponsible conduct. ‘Technically, you are right that MHCT is a private company, but the Hydropower Project in Majayjay, Laguna is a DOE-priority project, national in character, which is being undertaken by our client through a legitimate RE Contract (Hydropower Service Contract HSC-2014-04-437) executed on April 11, 2014 between MHCI and the Department of Energy (DOE). For your information, the said RE Contract provides, among others, the rights of RE Developer (MHC) to receive assistance from the Department (DOE) in “securing access to lands and other areas where Hydro resources shall be harnessed”. The RE Developer shall “have at all times the right of ingress to and egress from the Contract Area to and from facilities wherever located.” It also provides that the DOE shall, upon request of RE Developer, as may be reasonable given the attendant circumstances, “assist the RE Developer in securing such rights.” Finally, the same RE Contract also contains a provision that the Department of, Energy (DOE) “undertakes to provide further assistance to RE Developer, including the exercise of the power of eminent domain, if necessary, to secure such necessary or proper rights at such cost for the account of the RE Developer, if the RE Developer is unable to secure such rights at commercially reasonable costs through negotiations or if the same is the most expedient course of action to support the timely execution of Hydropower Operations.” (Bold /italies letters, for emphasis) \tt0. Pade ‘The steps undertaken by the DOE representatives are in accordance with their contractual obligation which is allowed under existing laws. ‘The presumption of regularity in the performance of their official functions would prevail against any biases or unfounded /baseless allegations of irregularities. ‘There is no manifest partiality in favor of MHCI or that DOE gives preferential attention to MHCT since the execution of the said RE Contract was done in the regular course of their official functions, pursuant to the provisions of the Renewable Energy Act of 2008 (RA 9513). Likewise, DOE has the authority to enter into any contractual obligation pursuant to its’ given mandate under the Department of Energy Act of 1992 (RA7638), particularly on the power of DOE to establish and administer programs for the exploration, development and utilization of energy resources, including Hydropower Resources. ‘The establishment of a Hydropower project in Majayjay, Laguna is part of the national government's commitment to uplift our national economy through the development and utilization of our energy resources. All forees of potential energy in public and/or private lands, within the Philippine territory, belong to the State and their exploration, development, and utilization are governed by Section 2, Article II of the 1987 Constitution. Thus, the need to acquire your client's property is not whimsical or arbitrary on the part of DOE, but in accordance with its long term goal to develop our national economy. ‘With all these legal basis, we hope that your position will soften and give us the opportunity to actively participate in the development, not only of the entire country, but also of the Municipality of Majayjay, Laguna which stands to be directly benefited by the royalties that MHCT will pay in accordance with the said RE Contract. We are looking forward for your cooperation and kind understanding on this matter, We assure you that MHCI will pay your client the just compensation, which RA. 8974 or most recent law on expropriation provides. Thank you. Copy furnished: ‘The HONORABLE SECRETARY Department of Energy (DOE) Energy Center, Merrit Road, Fort Bonifacio, Taguig City