MIAA told to pay P22-M to state firm over extra cost of terminal repairs

The Ninoy Aquino International Airport (File photo from Philippine Daily Inquirer)

The Commission on Audit has ordered the operator of the Ninoy Aquino International Airport (Naia) to pay P22.37 million in additional costs incurred in emergency repairs implemented by the state-run Philippine National Construction Corp. (PNCC) at International Passenger Terminal I in 2001.

In a four-page decision, COA granted the PNCC’s money claim against the Manila International Airport Authority (MIAA), although it was reduced slightly from the total demand of P26.11 million.

The price adjustments arose from “variation orders” due to the additional cost of material, labor, and equipment, as well as the need for some redesigns to repair the roof deck slabs, columns, and steel trusses of the terminal’s four gates in order to avoid accidents.

COA noted that MIAA approved the changes in the design and construction methods in PNCC’s rehabilitation of the roofing system, which was in imminent danger of collapse.

Despite the lack of a contract provision for the additional expenses, COA said PNCC wa still allowed to recover the amount “to avoid unjust enrichment.”

“MIAA and the public at large are benefitting from the construction works of PNCC. Clearly, to completely deny PNCC the payment would result in MIAA’s unjust enrichment at the expense of PNCC,” read the decision.

“The measure of recovery should relate to the reasonable value of the services performed because the principle aims to prevent undue enrichment based on the equitable postulate that it is unjust for a person to retain any benefit without paying for it,” it added. /atm