Courts may review Northrail contract

MANILA, Philippines–The Court of Appeals has again upheld the right of Philippine courts to review the contract of a Chinese contractor in the controversial $500-million Northrail project.

The appeals court last week denied China National Machinery and Equipment Corp.’s motion for reconsideration of an earlier court decision allowing a Makati court to proceed with a case that seeks to stop the Manila-to-Central Luzon railway project for being disadvantageous to the government.

The Chinese firm asserted that the local court had no jurisdiction over the case because CNMEC was an agent of the Chinese government and the project was the result of an executive agreement between the Philippine and Chinese governments. [Continue Reading...]

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