DOJ: Piatco group deserves payment for building NAIA-3

The consortium that built the new Terminal 3 of Ninoy Aquino International Airport (NAIA) is entitled to government compensation after its contract to build and operate the facility was voided Monday by the Supreme Court in a 10-3 vote.

Under the law, the government should compensate Philippine International Air Terminals Co. (Piatco) for "legitimate expenses" it incurred in constructing the $350-million terminal, Justice Undersecretary Manuel Teehankee said in an interview.

But until the court ruling becomes final, the government does not yet have to pay compensation. It also cannot fully take over the terminal’s operations or rebid the franchise to operate the facility, Teehankee said.

The terminal was completed last year but it remains closed after the government questioned the deal’s terms and abandoned the contract.

Teehankee said the Manila International Airport Authority, which operates the NAIA, will have to manage the new terminal "in the meantime" until the ruling becomes final.

One of the justices who voted in favor of the decision, Artemio Panganiban, wrote in a separate opinion that the government should compensate Piatco’s reasonable expenses.

"Indeed it should, otherwise it will be unjustly enriching itself at the expense of Piatco and, in particular, its funders, contractors and investors — both local and foreign," he said.

He suggested that the government bid out the franchise to operate the terminal. But the winning bidder must pay Piatco a price set by the government based on the project’s "reasonable" value.

"After all, there is no question that the State needs and will make use of Terminal 3, it being part and parcel of the critical infrastructure and transportation-related programs of government," Panganiban said.

Aside from Panganiban, those who concurred with the court decision were Chief Justice Hilario Davide Jr., Justices Josue Bellosillo, Romeo Callejo Sr., Renato Corona, Angelina Sandoval Gutierrez, Ma. Alicia Austria Martinez, Conchita Carpio Morales and Consuelo Ynares Santiago.

Justices Adolfo Azcuna, Leonardo Quisumbing, and Jose Vitug dissented. Justice Antonio Carpio inhibited himself. He gave no reason.

Finance Secretary Jose Isidro Camacho said Malacañang has not yet decided what to do with the terminal and that it was still too early to say which of Piatco’s investors are entitled to compensation.

"That is a question that has to be settled separately by the court but if we are required to do so we are prepared to meet our obligations," he said.

Malacañang wants the dispute over so the government and Piatco can start new negotiations on the fate of the terminal. Piatco had denied the contract was anomalous.– With Des Ferriols