Mandaue City reclamation project expected to proceed

As SC upholds JV deal

MANILA, Philippines — Development of the 1 31-hectare reclamation and urban project in Cebu is expected to move forward with the Supreme Court upholding the legality and enforceability of the joint venture agreement between GlobalCity Mandaue Corp. (GMC) of former congressman Michael “Mikee” Romero and the city government of Mandaue.

The ruling affirms earlier decisions by the Pasig Regional Trial Court and the Court of Appeals, which directed both parties to implement the contractual joint venture agreement signed on Jan. 7, 2014, in good faith and in accordance with its terms.

The decision reinforces the binding nature of the contractual joint venture agreement and compels both parties to fulfill their respective obligations without further delay.

“We welcome the Supreme Court’s affirmation of our agreement. GMC is ready to resume work with the City Government of Mandaue and relevant agencies to bring this transformative project to life,” GMC legal counsel Hans Santos said.

Santos said the decision clears the path for sustainable urban growth, job creation and enhanced economic competitiveness not just for Mandaue City, but for the entire Central Visayas region.

As one of the most ambitious reclamation initiatives in the Visayas, the GlobalCity Mandaue project aims to transform a 131-hectare portion of the Mactan Channel into a dynamic mixed-use estate.

The planned development includes commercial centers, residential communities, industrial zones and tourism facilities designed to boost regional growth and generate significant economic activity.

“We are committed to delivering a world-class development that uplifts communities and drives national progress,” Santos said.

Originally executed by the City of Mandaue and Romero’s business group Sultan 900 Inc., the agreement was later implemented by GMC.

The project started mobilization in 2016 with the deployment of equipment and personnel.

Progress, however, was halted following a legal battle that spanned nearly a decade.

Mandaue Land Consortium (MLC), a member of the Wenceslao Group of companies said that the delay started when Sultan 900 was brought in for the project by former mayor Jonas Cortes.

MLC said Sultan 900 later assigned its rights to GMC to reclaim the same area.

According to the company, the Mandaue City reclamation project was approved in 2001 and 2003 by then Mandaue mayor Thadeo Ouano Sr., the current mayor’s father, with MLC as the city’s joint-venture partner.

In 2016, MLC went to the Construction Industry Arbitration Commission for arbitration and won.

The company said that Mandaue City was ordered to honor its contract with MLC and to fully comply with its obligations to MLC.

MLC said  the local government complied and issued a notice to proceed in 2019.

However, the company said that Cortes won again as mayor in the same year and pushed for GMC.

“With Ouano Jr. as mayor now, the project can start as soon as permits and documentation requirements are obtained,” MLC said.