G.R. No. 140047, July 13, 2004;

FACTS:

Philippine Export and Foreign Loan Guarantee Corporation (hereinafter Philguarantee) filed a complaint for reimbursement  from .P. Eusebio Construction, Inc. (VPECI) of the sum of money it paid to Al Ahli Bank of Kuwait pursuant to a guarantee it issued for respondent.

The claim represents  the full payment of the performance bond  to Al Ahli Bank, as a counter-guarantee for the construction of the Institute of Physical Therapy-Medical Rehabilitation Center in Iraq. VPECI and 3-Plex allegedly had delays on the construction work due to some setbacks and difficulties. The Project was not completed as scheduled.  VPECI failed to pay prompting Philguarantee to file the case. 

The State Organization of Buildings (SOB), Ministry of Housing and Construction, Baghdad, Iraq, awarded the construction of the Institute of Physical Therapy-Medical Rehabilitation Center, Phase II, in Baghdad, Iraq, to Ajyal Trading for a total contract price of US$18,739,668.  3-Plex, respondent entered into a joint venture agreement with Ajyal; and undertook the execution of the entire Project, while the latter would be entitled to a commission of 4% of the contract price. 3-Plex, not being accredited by POCB assigned and transferred all its rights and interests under the joint venture agreement to VPECI.