NDC, Caltex move closer to settling dispute

The National Development Company (NDC) and Caltex Philippines appear to be inching closer to a settlement of their lease dispute.

According to reliable government sources, the NDC has softened on its earlier stance to go ahead and institute legal proceedings against Caltex for its refusal to vacate NDC properties after the expiration of a 25-year lease.

NDC, sources revealed, are now willing to work out a compromise with Caltex on the various lease agreements.

They said that NDC may give in to agreements wherein Caltex as the lessee has the option to renew at terms favorable to the American oil company.

On the other hand, Sources said, NDC would make sure that it gets its own terms in renegotiating other lease agreements that are "mutually agreed upon."

Trade and Industry Manuel Roxas II had met recently with Caltex Philippines country chair Nicholas Florio to discuss the lease dispute. Roxas is also the chairman of the board of NDC.

According to Roxas. "there was no breakthrough," adding that the meeting with Florio was intended to "fast-track a settlement/resolution to the impasse."

The NDC board chairman said that "no one is giving in."

He said that there was only agreement "to simply preserve the legal position of each party."

Even then, Roxas admitted, that "we look forward to reaching an arrangement," adding that both parties are now going through the documents.

NDC had earlier filed an eviction notice against Caltex following the expiration of various 25-year lease contracts.