Approving it without any word from the people who had brought up issues seems a bit hasty, Wes. I still have some serious questions, here.
First, why is the city made from wood primarily? We live in a VERY post scarcity society, it would be cheaper just to use any of the known materials that Yamatai can manufacture than to set up an entire system to build everything out of a material that's far from standard in the modern setting. Even temporary, quick shelters aren't made out of wood in this setting. This extends to lots of other parts of the written out info, like how the streets turn into mud. If this was a temporary camp, sure, but an actual city would be constructed with far better materials.
Secondly, why build a city here, when other places with more reason to be worked on are still around. A planet that has no existing civilian population would make little sense to set as a priority for work to be done, especially when there are other planets still in need of improvement, even from an IC perspective.
Finally, the question stands. Why would Yamatai hire a no-name company, with no history of work and no background, to build a city for them, when they have ably handled such matters themselves for decades? Especially since, from the writing, the ITC really isn't doing a very bang-up job of it. Just doesn't add up. I could see them hiring an established, well known company like Emrys, or Geshrinari to help, but not a company with no income, no work history, and no products.