- Petitioner
- Hydro Resources Contractors Corporation
- Respondent
- National Irrigation Administration
- Citation
- G.R. No. 160215
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Ynares-Santiago, J.
- Decided
- November 10, 2004
Summary
This case involves a foreign currency differential claim by Hydro Resources Contractors Corporation against the National Irrigation Administration under a construction contract for the Magat River Multi-Purpose Project. The contract, funded by the International Bank for Reconstruction and Development, contained both peso and US dollar components at a fixed exchange rate. Due to peso devaluation during project execution (1978-1984), Hydro claimed entitlement to additional foreign currency differential of $1,353,771.79. The Supreme Court ruled in favor of Hydro, finding that prescription did not bar the claim due to timely arbitration notice and NIA's acknowledgment of the debt through joint computation. The Court held that the internationally-funded contract was exempt from R.A. No. 529's currency restrictions, and that NIA was estopped from claiming fixed exchange rates after previously applying prevailing rates. The decision reinstated the Construction Industry Arbitration Commission's award to Hydro, emphasizing principles of contractual good faith and estoppel in commercial construction disputes.