Court orders gov’t to pay Piatco $175M

MANILA, Philippines—The Pasay City Regional Trial Court has ordered the Philippine government to pay the Philippine International Airport Terminals Co. Inc (Piatco) US$175-million as just compensation for the takeover of the Ninoy Aquino International Airport Terminal III (NAIA-III).

In its 11-page decision, the Pasay Court, through Judge Eugenio Dela Cruz, said from the amount of US$175,787,245.10, the government will deduct the P3,002-billion actually paid to Piatco on Sept. 11, 2006 or roughly about US$63-million.

“It is worthy to emphasize that the determination of just compensation is limited to the acquisition of the building/facilities or the improvements on the land at the time of filing. It does not include any right or franchise to operate the airport or a right to be paid an increased value due to the inflation rate or any entitlement to interest since Piatco’s concession on agreement with the Republic was declared null and void by the Supreme Court,” the decision stated.

“Considering that NAIA IPT III suffered from massive structural defects, the fact that construction thereof was never completed by defendant PIATCO, and the existence of evidence showing that funds were used perceively by the defendant in irregularities that attended the NAIA IPT III contract, equity dictates that the costs for repair and completion of the NAIA IPT III , as well as the amounts used in fiddlings must not be included in computing the amount of just compensation…compensation must be just not only to the property owner but also the public which ultimately bears the cost of expropriation,” the court said.

In 2006, the government already paid P3.002-billion to Piatco as just compensation so that a writ of possession can be implemented by the government to take over the NAIA III.

Then, an independent appraiser has been appointed to determine the exact value of just compensation that it should pay Piatco.

In November, 2010, the Philippine government said that the cost of construction valuation of NAIA III should be reduced due to Piatco’s non-compliance with contract specifications.

Solicitor-General Jose Anselmo Cadiz, in a phone interview said “generally, this is a good decision for the government and the Filipino people.”

He said actually, the government is insisting that it owe Piatco US$149,448,037 which is smaller than what the court required the government to pay. However, Cadiz said the US$175-million order is by far better than what Piatco was claiming that the government owes them which is US$842,799,087.00.

“We will meet with the legal team of the President to determine our next step,” Cadiz said.