Naia 3 rehab deal put on hold

The signing of the P1.9-billion construction work agreement with a Japanese contractor to complete the rehabilitation of the Ninoy Aquino International Airport (Naia) Terminal 3 has been put on hold after Philippine government lawyers decided to go over the contract a final time.

Transportation secretary Joseph Abaya said Japan’s Takenaka Corp., the original contractor of Naia Terminal 3, has so far “conveyed they are willing to sign” the  P1.9-billion construction work agreement.

Abaya said the final signing last week was put on hold by the Office of the Solicitor General, which needs to give any agreement with Takenaka a “final legal pass.”

Abaya said solicitor general Francis Jardeleza is currently out of the country but he is expected to return today (July 1).

“We need a document from the OSG before signing” the contract, he said in a text message.

The Department of Transportation and Communications has been negotiating with Takenaka to address certain structural issues at Naia Terminal 3. These issues have hindered the government from fully utilizing the facility. Abaya said Naia Terminal 3 is only operating at about half of its total capacity of 13 million passengers a year.

Once an agreement with Takenaka is signed, Abaya said, Naia Terminal 3 may be fully operational in 8 months, or by the first quarter of 2014, ahead of the World Economic Forum to be hosted by the Philippines.

Naia Terminal 3 opened in 2008 after it was mothballed for six years.

In 2002, the Philippine government under President Arroyo alleged that the contract with Philippine International Airport Terminal Co. (Piatco)—the consortium that won the right to build the airport under the Ramos administration—was riddled with irregularities.

Takenaka was then hired by Piatco as contractor for Naia Terminal 3.

Further delays were caused by years of litigation between the Philippine government and Piatco and the latter’s German shareholder Fraport AG.