Contractor offers to pay fees required of SM Clark
Clark Development Corp. (CDC) president Antonio R. Ng said that the SM contractor is willing to post a R1.5-million bond for the fees for permits being required by Angeles City although the city government has yet to provide the contractor a computation of the fees.
This developed after the issuance of a temporary restraining order (TRO) by Regional Trial Courts Branch 58, presided by Judge Philbert Yturralde. The TRO puts on hold for 20 days the construction of the R500-million SM City project inside Clark Special Economic Zone (CSEZ) following a complaint filed by Mayor Carmelo Lazatin of Angeles City.
Ng said the posting of bond was suggested by NGCBDC, pending the city governments computation, during the court hearing at RTC Branch 58 in Angeles City on the petition to lift restraining order issued against the construction firm.
The more than R1.5 million in fees was the same amount paid to CDC for the various permits required for the project to commence inside the economic zone.
Ng was informed that the construction firm is losing millions of pesos daily since the stoppage of the construction of the mall building in Clark. NGCBDC was tapped by the Premier Central Inc. (PCI), owner of the SM mall chain, to construct the mall located in a 25-hectare area in Clark.
Ng hoped that the issue will be resolved with the lifting of the TRO in order for construction to resume and meet the deadline for its scheduled opening in April next year.
With the issuance of the TRO, the projected opening of SM in April next year, in time for the various activities including the grand re-opening of Expo Pilipino, would be delayed.
Earlier, CDC has coordinated with the lawyers at the Office of Government Corporate Counsel (OGCC) to seek their opinion on the jurisdiction of CDC over the location of SM project in Clark.
In a complaint, the city government represented by Mayor Lazatin argued that that the construction firm must secure the necessary licenses from Angeles City before any construction could be undertaken in the area.
Knowing that the SM project is located inside the territorial jurisdiction of the CDC, the construction firm and the owner PCI have "religiously paid all the required fees," including permits for building, electrical, sanitary and mechanical construction, to CDC, a government-owned corporation.
With the scheduled opening in April next year, SM is expected to create some 12,000 direct and indirect jobs for residents of Metro Clark and nearby areas.
In an effort to level the playing field, SM-Clark project will be treated like any other commercial establishments outside the zone and will be required to pay all taxes.
SM is credited for the donation of R50 million for the development of the Bayanihan Park near the main gate into a world-class park, including the widening to four lanes of the roads at the ingress and egress of Clark.
SM also funded the construction of the multi-million-peso drainage system on the McArthur Highway in Balibago, Angeles City.
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