NO TRESPASSING. Guards at the main entrances to the GGLC sites. PHOTOS BY BONG LACSON
CLARK FREEPORT – The construction of The Medical City-Clark (TMCC) is not “in full swing” contrary to an earlier report.
The work was stopped altogether after the Global Gateways Development Corp. (GGDC) and the Peregrine Development International reached an impasse on the development of the 177-hectare Global Gateways Logistics City (GGLC) project here where the TMCC is located and part of its vertical component.
On Wednesday TMCC CEO Dr. Cenon R. Alfonso said “there is absolutely no truth to published reports that the construction of the premier hospital at this freeport was stopped as of June 2014, owing to the dispute between the GGDC and its contractor Peregrine“ Alfonso also said “GGDC has assured us that they will continue to finance the construction of the hospital and it will be turned over to us on schedule.”
Alfonso said TMCC is in its “final stages and in full swing” and “scheduled to open one month earlier, on December 8, 2014.” He added that in his capacity as CEO of TMCC he made thrice weekly visits to the site to keep abreast of the progress of the construction.
Only guards
But at about 4 p.m. last Thursday or on the very day Alfonso issued his statement to media, there is no ongoing construction at the TMCC as Punto! was given a tour of the site. the hospital is finished,” he said. “Some of the big heavy test equipment were even brought in like the expensive MRI machine,” he said. “But right now all work in this hospital is totally suspended.”
Tension at GGLC project
Two hours earlier at about 2 p.m. on Thursday, some 100 security guards from “The Star Force” security agency brought by GGDC tried to force their way into the GGLC project offi ce which is occupied by Peregrine personnel.
But security guards from Herstal security agency of Peregrine stood their ground preventing the takeover. The tension prompted lawyers of Peregrine to make an “urgent request for assistance to maintain peace and order” addressed to Nestor Deona, manager of the Aviation Security Department of the Clark International Airport Corp. (CIAC) which oversees the property where the GGLC project is located.
The Clark Development Corp. (CDC) police were also in the area in response to the tension created by GGDC’s plan takeover of the GGLC project office. Work is stalled and only security guards of Herstal security agency are seen guarding the hospital.
“It is about 95 percent finished,” Dennis Wright, president and CEO of Peregrine, said of the hospital construction.
He talked to Punto! at the GGLC office before the tour. “If you walked in the ground floor you’ll think
No active mediation
For his part, Wright denied that there is an ongoing “active mediation” being conducted by CIAC President-CEO Victor Jose “Chichos” Luciano contrary to the latter’s claim. Wright said nobody from CIAC or even Luciano himself has attempted to talk to him to resolve the issue.
“The contract (Engineering Procurement Construction Management contract) is not terminated. There is not even a hearing evicting us,” said Wright. The EPCM contract or agreement was given to Peregrine as the “exclusive prime contractor” of the GGLC project.
This was made after Peregrine gave the ownership rights of the GGLC project to KGL Investment Co. in 2008.
Funds withdrawn from WCA
It can be recalled that the KGL, a firm owned by a Kuwaiti family and operating here as the GGDC, withdrew its funds from a working capital account (WCA) from which Peregrine draws funds for its operations. Peregrine is the sole developer of the GGLC project under the EPCM contract.
On June 3, GGDC withdrew some $1.5 million from the WCA and unilaterally cancelled the EPCM contract with Peregrine. The GGLC project has been allegedly sold by KGL to another entity.
Court order
Immediately after the unilateral cancellation of the EPCM contract, Peregrine sought refuge from the courts obtaining a 72-hour temporary restraining order (TRO) on June 10. Thereafter, the court issued another order on June 13 extending the TRO by 17 days resulting in a 20- day TRO.
On June 20, an “Urgent Petition for Contempt” was fi led against GGDC which continued its non- compliance with the court’s order. Then on June 27, a Writ of Preliminary Injunction was issued against GGDC which effectively directed it to “respect the terms of the EPCM agreement and continue to fund the GGLC project throughout the duration of the dispute.”
GGDC has made an appeal to the Court of Appeals.
Mass lay-offs
Meanwhile, some 180 officers, staff and laborers directly employed under the GGLC project, almost all of whom are Kapampangans, and an estimated another 500 workers employed by subcontractors have lost their jobs due to the impasse.
