The Department of Environment and Natural Resources (DENR) has canceled its 2002 contract with Blue Star Construction and Development Corporation, the developer of Masungi Georeserve.

Photo: Masungi Georeserve/Facebook
On March 7, the DENR announced the termination of the said contract due to alleged failure to execute terms and violations of legality. The agency also demanded that Blue Star vacate the premises occupied by Masungi Georeserve in Rizal within 15 days of receiving the notice.
“Dito po sa napirmahang letter of cancelation ng ating department, sinasabi natin na isa sa mga kontrata rito (In the letter of cancelation signed by our department, we are saying that one of the contracts), which is the 2002 Supplemental Agreement, is canceled, and we are demanding the Blue Star to vacate the area,” DENR Assistant Secretary for Legal Affairs Norlito Eneran stated.
According to the DENR, the government’s findings indicate that Blue Star’s violations are as follows:
- Imposing fees for entry to the eco-tourism site, which is not included in the Masungi Rock Eco-Tourism Plan.
- Construction of park facilities without necessary permits.
- Fencing off a portion of Masungi Georeserve, particularly Lot 10.
- Restricting access to DENR personnel responsible monitoring and inspecting the project.
- Failing to complete the housing project.
In a statement, Masungi Georeserve lamented DENR’s decision to cancel their contract, emphasizing that the agency has “chosen to go after those protecting our forests instead of those destroying them.
“While it continues to approve destructive quarries, private resorts, and industrial projects that irreparably harm our watersheds, it is using taxpayer money to target Masungi Georeserve—a globally recognized conservation initiative—and its affiliated company Blue Star, which started the conservation and protection efforts in the area,” they continued.
“For over two decades, Masungi and Blue Star have been on the frontlines, defending our forests against land grabbers, illegal quarries, and powerful vested interests.”
Masungi Georeserve also cited that the 1996 Joint Venture Agreement (JVA) between DENR and Blue Star aims to “create a sustainable housing project (with 70% green spaces and 30% development) for government employees and address ongoing rampant land speculation over the area,” adding that the project was acquired by Blue Star.
They also noted that the JVA is “not a simple contractual arrangement in which an agency hires a company to construct a project in exchange for payment.”
“Instead, it is a collaborative partnership where both parties—the financier and developer (Blue Star) and the landowner (DENR)—share responsibilities, obligations, and equity in the project. As outlined in the contract, disputes should be resolved through good-faith dialogue between both parties,” they explained.
Masungi Georeserve said they have not received the notice of cancellation from the DENR.
“Rest assured, we have anticipated this action by the DENR Secretary Ma. Antonia ‘Toni’ Yulo-Loyzaga. We are confident of the legal remedies available to us to stay the order, continue our work, and save Masungi,” they underscored.
“We call on the Filipino people to see through this deception and stand with us in protecting the last remaining forests of our generation. The future of our watersheds—and of generations to come—depends on it.”
Masungi Georeserve has received international recognition for its outstanding conservation efforts. It was acknowledged at the 2024 World Economic Forum and won the 2022 United Nations Sustainable Development Goals (UN SDG) Action Awards.
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