Quantcast
Latest Stories

Pay Piatco P16B, court orders gov’t

By

The Court of Appeals has ordered the government to pay the Philippine International Air Terminals Co. Inc., the builder of Ninoy Aquino International Airport Terminal 3 (in photo), “just compensation” amounting to $371,426,688.24 (about P16.2 billion) for the expropriation of the terminal. PHOTO BY RICK ALBERTO

MANILA, Philippines—The Court of Appeals (CA) has ordered the government to pay the Philippine International Air Terminals Co. Inc. (Piatco), the builder of  Ninoy Aquino International Airport (Naia) Terminal 3, “just compensation” amounting to $371,426,688.24 (about P16.2 billion) for the expropriation of the terminal.

The amount was what the company was owed as ofJuly 31 and was based on a legal interest rate pegged at 6 percent per annum, according to the appellate court’s third  division which modified the May 23, 2011, ruling of the Pasig Regional Trial Court Branch 117.

Certain aspects of the lower court’s ruling were questioned before the appellate court by Piatco, the government as well as intervenor-appellants, Takenaka Corp. and Asahikosan Corp., which are subcontractors of Piatco.

No interest awarded

The Pasig court had ordered the government to pay Piatco a much lower amount, $175,787,245.10 (P7.6 billion), less the P3 billion down payment that the government had already paid to Piatco, as compensation. The lower court did not award any interest as part of any compensation to be paid to Piatco.

In addition, the government and the intervenors were asked to pay their proportionate share of the fee for the three-member Board of Commissioners of P1.75 million each.

But the lower court held in abeyance the resolution of the intervenors’ claim for compensation from Piatco.

The Board of Commissioners was a panel, reportedly composed of three lawyers, which the Pasig court had convened to aid it in determining the amount of “just compensation” that should be paid to Piatco.

The CA ruling, dated Aug. 7 and penned by Associate Justice Apolinario B. Bruselas Jr., modified the lower court’s ruling by fixing the “just compensation” to Piatco at $300,206,639, minus the $59,438,604 paid in September 2006, for a net sum of $240,768,035.00, with legal interest rate of 6 percent.

It added that “upon finality of judgement, interest on the sum due by then shall be 12 percent until fully paid.”

Owner’s loss

In coming up with its computation, the appellate court defined just compensation as referring to “the full and fair equivalent of the property sought to be expropriated” and explained that “the measure is not the taker’s gain but the owner’s loss.”

“To arrive at just compensation, we simply put in the figure determined as replacement cost, which is $300,206,693 and factor in law and equity. Law and equity, however, dictate that interest should be imposed on the amount due Piatco,” it said.

Noting that the Pasig court did not award interest as part of the just compensation for Piatco, the court said it would be unfair not to do so because “evidently the republic has been enjoying the income or fruits from the operation of the structures it has expropriated.”

“(I)t is just and reasonable to award interest in this case because of the delay in the payment of just compensation considering that Piatco had spent substantial funds in the construction and installation of Naia Terminal 3 which the government had already taken over and benefited for a period of time,” it said.

But the court said it did not agree with Piatco’s claim of 12-percent interest rate, which was also the recommendation made by the Board of Commissioners.

Instead, the court said that since there was no stipulation as to the interest and “considering all of the peculiar circumstances and equities of the case,” it was fixing the interest rate at 6 percent per annum.

“There is no doubt that the obligation of the republic to Piatco is to pay a sum of money and that there is a delay in the full performance of such an obligation,” it said.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Compensation , cour , NAIA terminal 3 , Philippine International Air Terminals , Piatco

  • AlexanderAmproz

    This hugh Fraport/Piatco mess was done on purpose to please Lucio Tan,
    the bad bidding looser for the Terminal 3 construction.
    Its erode not only Manila Airport facilities for passengers, but the Philippines credibility was deeply affected in a whole by the investors community.

    A Banana Republic show off

  • kismaytami

    And the court believes that the people are ‘enjoying’ Terminal 3…

  • wawa2172

    So PNoy bayaran na ang Piatco para manahimik na ang issue sa government expropriation of NAIA III. The government could make a loan from domestic and foreign banks to pay for the bill of 16B PHp and its rising dahil sa interest rates. Anyway, the payments to the banks will not be a problem dahil pwedi naman itong ipasa nang gobyerno sa taong bayan kahit na sa di pa nakaksakay nang eroplano. With 80 million pinoy’s chicken lang ang 16B pesos…hu hu hu hu.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Sign maker to be nailed to cross for 28th time
  • 50 Quezon City cops each carry 30-kg crosses
  • AFP: Abu Sayyaf group, not MILF, target of Basilan operation
  • Massive infra spending set
  • DOJ to NBI: Arrest Cedric Lee, 4 others
  • Sports

  • Federer would skip tennis to be with wife, newborn
  • Manny Pacquiao in PBA? If so, he’ll wear No. 17
  • PSC sets Blu Girls US training
  • Power Pinoys settle for 7th place
  • Successful coaches to get raise
  • Lifestyle

  • Are your favorite malls open this Holy Week break?
  • Celebrate Easter Sunday at Buddha-Bar Manila
  • Moriones feast: A slow, steady transformation
  • Weaving ‘palaspas’ a tradition kept alive in Tayabas City
  • Finalists announced for best translated books
  • Entertainment

  • Why Lucky has not bought an engagement ring for Angel
  • Derek more private with new girlfriend
  • ‘Community’ star happy with return of show’s creator
  • Jealousy is kid stuff
  • Mommy-daughter adventure continues
  • Business

  • PH presses bid to keep rice import controls
  • PSEi continues to gain
  • Number of retrenched workers rose by 42% in ’13
  • PH seen to sustain rise in FDIs
  • Gov’t subsidies to state firms fell in first 2 months
  • Technology

  • Smart phone apps and sites perfect for the Holy Week
  • Tech company: Change passwords or suffer ‘Heartbleed’
  • Filling the digital talent gap
  • SSS to shut down website for Holy Week
  • Another reason to quit social media this Holy Week: your safety
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • First Fil-Am elected to Sierra Madre, Calif. city council
  • UC Irvine cultural night to dramatize clash of values in immigrant family
  • Filipino sweets and info served at UC Berkeley Spring Fest
  • Milpitas, California kids wrap up a successful run of ‘The Wiz’
  • Netizens welcome Japan’s visa-free travel plan
  • Marketplace