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Developer airs concern over Global Gateway

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Developer airs concern over Global Gateway

12:08 AM September 01, 2014

Prime contractor and developer Peregrine Development International has urged Global Gateway Development Corp. (GGDC) to respect the law, honor its contracts and continue funding the construction of the proposed Global Gateway Logistics City (GGLC) at the Clark Freeport Zone in Pampanga.

In a statement issued over the weekend, Peregrine claimed GGDC allegedly refused to continue funding the agreed projects, including the Medical City hospital, resulting so far in the loss of jobs for 800 direct and indirect project employees. Also, many local vendors and suppliers remained unpaid for the initial work performed and services rendered for the projects.

“The Philippine government should note that GGDC has made little progress over the past six years it had held the site, which one can rightfully attribute to inadequate funding,” Peregrine further claimed.

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The 177-hectare GGLC is being constructed and managed by Peregrine, the company that conceived the logistics city project in 2006 after signing an agreement with the Clark Development Corp. (CDC) to develop the site. GGLC meanwhile is owned by GGDC, which is being funded by the KGL Group, a Kuwaiti investor.

The entry of KGL Group in the project was covered by an engineering, procurement and construction management (EPCM) agreement.

The problems started when KGL Group allegedly withdrew the funds from a working capital account (WAC) where Peregrine, its developer, used to draw financing for its operations.

Because of the lack of funding, all work on the GGDC project at the Clark Freeport Zone was suspended starting last June 3.

Peregrine was then forced to take the case to court, which imposed a temporary restraining order (TRO) against GGDC effective until June 13. The TRO mandated that GGDC should cease its termination proceedings, fund the working capital account, and maintain a status quo until the arbitration process in Singapore was completed.

But GGDC failed to fund the project and even made attempts to retake the project site, Peregrine further claimed. The actions of the Kuwaiti-funded firm led to the filing of an “urgent petition for contempt.”

On June 27, a Writ of Preliminary Injunction against GGDC was issued, which directed GGDC to “respect the terms of the EPCM agreement and continue to fund the GGLC project throughout the duration of the dispute.”

GGDC, Peregrine claimed, allegedly did not abide by the Writ of Preliminary Injunction.

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Peregrine further refuted reports that construction is presently taking place at GGLC.

“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,” it said.  Amy R. Remo

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TAGS: Business, Clark Freeport Zone, economy, News, Peregrine Development International
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