Solicitor general: Gov’t won’t take over NAIA-3

The government has no plans of taking over the controversy-laden Terminal 3 of the Ninoy Aquino International Airport (NAIA-3), Solicitor General Alfredo Benipayo said yesterday.

In a statement, Benipayo stressed this stand by the government, citing "disturbing facts" that were uncovered "which directly bear on the structural integrity and operational feasibility" of the $650-million NAIA-3 project, as constructed by the Philippine International Air Terminals Co. (Piatco).

Benipayo also belied a statement attributed to Edgardo Manda, general manager of the Manila International Airport Authority (MIAA), that a meeting between government and Piatco officials on June 10 in Singapore aims to agree on whether Terminal 3 should be acquired by the government and at what cost.

The government "is not inclined to acquire" NAIA-3, contrary to what is contained in Piatco’s "misleading press releases through its well-oiled public relations machinery," Benipayo said.

He clarified that talks to be held in Singapore between the government and Piatco are nothing more than a "procedural requirement."

"The meeting is required under the rules of the International Chamber of Commerce (ICC) for the parties and arbitrators to hold a preliminary conference to agree on procedural matters," Benipayo said.

"(The meeting) is not for purposes of reaching a settlement on the issues surrounding (the construction) of (NAIA) Terminal 3, particularly whether it should be acquired and what cost," he said.

"These procedural matters will be contained in the Terms of Reference, which will summarize the parties’ claims and counterclaims, the issues to be determined, the place of arbitration, and the like," Benipayo said.

He added that a "provisional timetable" for their respective pleadings will also be drawn up by the parties involved in the meeting.

"The position of the government is in its 108-page answer filed with the ICC on Jan. 30, 2004 with minor corrections on Feb. 6, 2004," Benipayo said. "Piatco is well aware of that and should refrain from misleading the public."

Manda was earlier reported as saying that MIAA, Piatco and Fraport FG of Germany — a major stakeholder in the Piatco consortium — will meet in Singapore, but in July 2005, supposedly to reach a settlement with the contending parties on the NAIA-3 issue.

Manda also reportedly said that MIAA will float bonds to raise the necessary amount to acquire NAIA-3.

NAIA-3 general manager Guillermo Cunanan reportedly said that government would have to raise around $1 billion to settle the whole issue — with $525 million going to Piatco and $425 million going to Fraport.

Piatco was awarded the contract to build and operate the NAIA-3 in 1997. However, the new state-of-the-art passenger terminal was not opened to the public following a string of controversies leading to the Supreme Court’s decision on May 6, 2003 to nullify Piatco’s contract with the government.

Piatco appealed the High Court’s ruling but was denied with finality last February.

The Fraport group, part of the Piatco consortium along with the Cheng family, had initially appeared willing to talk to government, but instead decided to bring its case to an international body — the World Bank — for resolution.

Benipayo insisted that Piatco should be the one to pay damages to the government for foregone revenues and expenses from the bidding project and for the voided agreements.

"It is Piatco which should pay the government damages for not having an operational terminal as of 1999 for the public, as agreed under the bid documents," Benipayo said.

Citing "troubling facts and circumstances" that raise questions on Piatco’s construction of NAIA-3, Benipayo stressed that the government will not be so hasty to consider any proposal to acquire Terminal 3 without a thorough review of its technical and financial records.

"Any government official who agrees to acquire the terminal without careful, definite and reliable assessment of these stringent requirements will be liable for impeachment, plunder and graft," the Solicitor General said.