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Grogun, Incorporated Vs. National Power Corporation.

GROGUN, INCORPORATED, petitioner, vs. NATIONAL POWER CORPORATION, respondent.

G.R. No. 156259 | 2003-09-18

D E C I S I O N

YNARES-SANTIAGO, J.:

On August 13, 1992, the National Power Corporation (NAPOCOR) awarded the project of rehabilitating the Caliraya Glory Hole Service Spillway (CGHSS) at Caliraya Reservoir, Lumban, Laguna to GROGUN INC. (GROGUN). Among several contractors, GROGUN offered the most workable and viable design at the lowest price.

The primary purpose of the Caliraya Reservoir was to keep the lake's water level within the specified limit not only for the protection of the dam but also to prevent the flooding of the towns surrounding the dam. Ever since the Caliraya Reservoir and the CGHSS were built in 1930, the CGHSS was...