Gov’t appeals court order on Naia 3 payment

Ninoy Aquino International Airport Terminal 3. PHOTO BY RICK ALBERTO / INQUIRER.net

MANILA, Philippines—The Aquino administration has decided to appeal a decision by the Court of Appeals last July ordering the government to pay the builder of the Ninoy Aquino International Airport (Naia) Terminal 3 more than double the amount previously required.

Transportation Secretary Joseph Abaya said in a text message to the Inquirer that the solicitor general “has filed a motion for reconsideration” of the order to pay Philippine International Air Terminals Co. Inc. (Piatco) a sum of $371.43 million.

Abaya, who was traveling abroad, was unable to immediately give additional details. Solicitor General Francis Jardeleza also could not be immediately reached for comment.

The Department of Transportation and Communications, which also oversees the country’s airports through attached agencies, has been in talks with the Office of the Solicitor General on their options moving forward.

Abaya said in early August that an appeal was among the options being studied by the government.

As noted, the Court of Appeals ordered the amount of $371.43 million as “just compensation” for the expropriation of the Naia terminal 3. The appellate court explained this was the amount owed by the government as of July 31 and included an interest rate pegged at 6 percent a year.

The decision of the Court of Appeals modified the May 23, 2011, ruling of the Pasig regional trial court, which ordered the government to pay $175.79 million (or about P7.3 billion) minus the P3-billion down payment already paid to Piatco.

Some politicians have also called on the Aquino administration to pay the amount instead of prolonging the process in the courts.

The Naia terminals, which are projected to serve 34 million local and international passengers this year, are considered the main air gateways to the Philippines and its capital district, Metro Manila.

But Naia Terminal 3, in particular, has been controversial given years of litigation between the government and its builders. The terminal opened only in 2008 after being mothballed for six years.

It failed to operate in 2002 after the Philippine government under President Arroyo alleged that the contract with Piatco, the consortium that won the right to build the airport under the Ramos administration, was riddled with irregularities.

It continues to operate at half its intended capacity of 13 million passengers per year.

The DOTC is moving to address this after it finally sealed an “agreement” early last month with original contractor Takenaka Corp. of Japan to complete the rehabilitation of the terminal.

The DOTC expects Naia Terminal 3 to be fully operational by August 2014, based on a 12-month work schedule agreed upon with Takenaka.