Piatco arbitration appeal rejected

The Department of Transportation and Communications (DOTC) rejected yesterday the Philippine International Air Terminals Inc. (Piatco) request for arbitration of the Ninoy Aquino International Airport Terminal 3 (NAIA-3) conflict.

In a letter to the Romulo Mabanta Buenaventura and delos Angeles law office, acting DOTC Secretary Agustin Bengson said Piatco’s request to undergo mediation or arbitration "was made on the erroneous assumption of the validity of the contract which contains the stipulation thereon."

"A review of the Constitution, law and jurisprudence will clearly reveal that the award of the NAIA-3 project to Piatco, the 1997 Concession Agreement, the 1998 Amended and Restated Concession Agreement, the three supplements executed yearly thereafter are null and void ab initio (from the very start)," Bengson said.

Bengson said that based on the Constitution, laws and jurisprudence, "the dispute clause which you (Piatco) invoke is likewise null and void, as a contract vests no right nor creates any obligations."

Another issue raised by the DOTC is the fact that the Piatco dispute is now pending before the Supreme Court. Bengson said all the issues that should bring the DOTC and Piatco to the negotiating table "are the same issues that are now subject to the completed judicial action by the Supreme Court and, for respect and deference to the highest tribunal of the country, where the matter is sub judice, we in the government sector have to take limited, calculated actions to avoid any possible legal repercussion."