However, the committee chaired by Rep. Ruy Elias Lopez of Davao City said some provisions of the contract need to be clarified with the government "for the avoidance of doubt and for purposes of transparency."
Piatco’s build-operate-transfer (BOT) contract was for the construction of the airport’s world-class Terminal 3, which is now almost complete. The project proponent-builder reportedly spent $650 million for the project.
Besides its finding that the contract does not violate the Constitution, the good government committee has also found that it complies with the BOT law and went through the normal processes, including approval by the investment coordinating committee of the National Economic and Development Authority.
There was "no showing of any irregularity in the approval process," it said in its report.
It warned Malacañang that scrapping the contract now could scare away foreign investors and prejudice the public.
One contract provision that the Lopez panel wants clarified has to do with the terminal fee that each passenger has to pay for using Terminal 3.
Under the contract, the terminal fee is $20 (about P1,060), twice the present rate.
During the hearing conducted by the committee, officials of the Department of Transportation and Communications testified that it was their understanding that the fee would be P500 denominated in US dollars.
They said they agreed to the $20 rate because that was the equivalent of P500 at the time the contract was being negotiated.
They did not foresee that the exchange rate would double, they claimed.
While Lopez and his colleagues found the Piatco contract constitutional, many members of the committee led by vice chairman Salacnib Baterina said it violates the Constitution and the BOT law.
The Baterina group said the fact that Lopez recommended some provisions be clarified shows that something is wrong with the contract.
President Arroyo has ordered that the contract be voided and a new bidding be conducted. – Jess Diaz