PHILIPPINE EXPORT AND FOREIGN LOAN GUARANTEE CORPORATION, petitioner,

vs.
V.P. EUSEBIO CONSTRUCTION, INC.; 3-PLEX INTERNATIONAL, INC.; VICENTE P.
EUSEBIO; SOLEDAD C. EUSEBIO; EDUARDO E. SANTOS; ILUMINADA SANTOS; AND
FIRST INTEGRATED BONDING AND INSURANCE COMPANY, INC.

FACTS:
The State Organization of Buildings (SOB), Ministry of Housing and Construction of Iraq, awarded the
construction of the Institute of Physical Therapy–Medical Rehabilitation Center (hereinafter the
Project) to Ajyal Trading and Contracting Company (hereinafter Ajyal), for a total contract price of
ID5,416,089/046 (or about US$18,739,668).
3-Plex and VPECI, as constructor availed by Ajyal, procured (1) a performance bond and (2) an
advance payment bond of upon signing of the contract through herein petitioner Philippine Export.
SOB however, required a letter-guarantee from a government bank of Iraq, so to comply with such
demand, three layers of guarantees had to be arranged.