CA allows Clark development project

MANILA, Philippines - The Court of Appeals (CA) has allowed the development of the 177-hectare Global Gateway Logistics City (GGLC) at the Clark Freeport Zone, including the construction of a branch of The Medical City (TMC) hospital in December.

The CA’s Eighth Division issued a writ of preliminary injunction favoring developer Global Gateway Development Corp. (GGDC) in its legal tussle with contractor Peregrine Development International Inc. (PDII) over the major development project of the government.

GGDC fired PDII as its contractor last July. PDII insisted that the move was irregular as it violated a six-month notification provision in their contract. The conflict prompted both parties to file charges against each other before the local court.

The construction of the TMC was stopped after PDII hired security guards to bar GGDC’s new contractors from entering the property.

The CA’s order enjoined the Angeles City Regional Trial Court (RTC) Branch 58 from implementing its rulings last June that granted relief to PDII and stopped GGDC from proceeding with the project despite the ongoing arbitration case between the two companies in Singapore.

The CA also enjoined RTC Judge Omar Viola from “conducting further proceedings in said case as well as in the related case of petition for indirect contempt… pending the final resolution of this petition or until writ is sooner lifted by the court.”

GGDC has invested over $100 million in GGLC, which is expected to create over 300,000 jobs, over 5.8 million square meters of floor space and an annual payroll of $600 million.

GGDC president Mark Williams said the decision of the CA would allow the company to complete work on the TMC hospital project by yearend. The hospital would provide world-class health services for thousands of Filipinos in the region.

 With the legal stumbling blocks out of the way, GGDC plans to start the construction of five buildings adjacent to the TMC, with about 10 to 12 floors each. GGDC is investing another $100 million for the five buildings.

Clark International Airport Corp. earlier affirmed its commitment to the terms of lease agreement with GGDC. GGDC and CIAC signed a 50-year lease agreement on July 16, 2008 for the 177-hectare project, which came to a halt this year after Peregrine prevented GGDC from exercising its rights over the project, including TMC Clark. – With Ding Cervantes