A US-based contractor wants a Kuwaiti investor to release funds for the development of the Global Gateway Logistics City (GGLC) project in the Clark Freeport Zone.
In a statement, Peregrine Development International said Global Gateway Development Corp (GGDC) should comply with court orders and fund the working capital account (WCA) to complete the Medical City Hospital and other work at the GGLC while the arbitration process proceeds.
Last June 27, the Angeles Regional Trial Court issued a Writ of Preliminary Injunction against GGDC, directing the company to “respect the terms of the Engineering, Procurement and Construction Management (EPCM) Agreement and continue to fund the GGLC project throughout the duration of the dispute.”
In June 3, all work on the GGDC project at the Clark Freeport Zone was suspended indefinitely after the Kuawaiti investor pulled out funds for the project.
The Medical City Hospital, which should be ready for the hosting of the 2015 Asia-Pacific Economic Conference (APEC), is also now “seriously in jeopardy,” according to Peregrine.
“This dispute has caused a very real and serious impact to the local community at Metro Clark with hundreds of jobs lost and many subcontractors, suppliers and vendors not being paid,” the company said.
Peregrine also questioned statements made by GGDC to accelerate funding and development of the GGLC project, this time committing $150 million to finish five office towers with a gross floor area of 145,000 square meters, a retail and gas plaza, and a hotel and serviced apartment complex by the end of 2015 creating employment opportunities for over 15,000 Filipinos from the region.
“Other proclamations over the last six years have similarly been heard which calls into question the validity and credibility of these most recent releases. It also calls into question why they do not just comply with the court orders and refund the WCA and complete the hospital and other work while the arbitration process proceeds,” Peregine said.
“The Philippine government should note that GGDC has made little progress over the past six years they have held the site which one can rightfully attribute to inadequate funding,” Peregrine said.
Peregrine conceived the project in 2006 after signing an agreement with the Clark Development Corp (CDC) to develop the site.