Megawide ordered to pay P368.92 million in Mandani Bay Quay dispute – BusinessWorld Online
MEGAWIDE CONSTRUCTION CORP. has been ordered to pay P368.92 million to HTLand, Inc. (HTLI) as part of a settlement in their dispute over the Mandani Bay Quay project.
In a regulatory filing on Tuesday, Megawide said the Construction Industry Arbitration Commission (CIAC) rendered a net award of P368.92 million in favor of HTLI.
“The company is currently evaluating the final award and will take such actions as may be appropriate under applicable laws and CIAC rules,” it said.
The dispute arose from an arbitration request filed by HTLI under the all-inclusive construction works agreement in 2019 for Mandani Bay Quay – Phase 2 Block 1 in Mandaue City, Cebu. HTLI is claiming a total of P1.3 billion, excluding interest on all claims from Megawide.
Megawide said it will file counterclaims in the arbitration in due course.
HTLI is a joint venture of Hongkong Land, a listed property investment, management, and development group in Asia, and Taft Properties, a Cebu-based residential, commercial, and mixed-use property developer.
HTLI initiated arbitration after alleging that Megawide failed to fulfill certain contractual obligations, prompting its payment demand.
The Mandani Bay Quay development is a high-rise residential and commercial project in Cebu, for which Megawide serves as the engineering, procurement, and construction contractor for Phase 2.
At the local bourse on Tuesday, Megawide shares closed eight centavos, or 2.42% lower, at P3.22 apiece. — Ashley Erika O. Jose