SUNTRUST Resort Holdings, Inc. and Megawide Construction Corp. agreed to extend the opening of a hotel-casino project to 2024 to provide flexibility to both parties.
In a disclosure to the Philippine Stock Exchange on Thursday, Suntrust said that both parties agreed to revise their agreement signed in 2020. Megawide is constructing Suntrust’s five-star hotel and casino, Westside City Resorts World project.
In a past revision on Nov. 24, 2021, the companies agreed to extend the completion date of the project’s first package, which includes a pile cap and an excavation, to Oct. 31, 2021.
They also extended the completion date for the second package, which includes the construction of the basement substructure, superstructure, and architectural builders’ works and finishes, to March 31, 2024.
The third supplemental agreement on Thursday added an item that will provide incentives ex gratia to Megawide for achieving interim milestones as detailed in the agreement. Incentives ex gratia are voluntary bonuses or extra payments given by a contracting party and are therefore not required.
The updated supplemental agreement also stated that Suntrust will award all the remaining mechanical, electrical, plumbing, and fire protection main and sub-packages to Megawide.
On Nov. 13, Suntrust gave the letters of award to Megawide for the construction of the Westside City Resorts World project. The initial award totaled P6.3 billion, with the first package amounting to P2.3 billion and the second package amounting to P4 billion.
The project’s Main Hotel Casino is a gaming and entertainment complex facing Manila Bay called Entertainment City Manila.
Suntrust is into tourism-related businesses. Its subsidiaries include SWC Project Management Ltd., WC Project Management Ltd., and Suncity WC Hotel, Inc.
On the stock market on Thursday, shares in Suntrust slipped by four centavos or 4% to P0.96 apiece, while shares in Megawide added five centavos or 1.49% to P3.40 each. — Justine Irish D. Tabile