No settlement over NAIA-3 yet

Government lawyers denied yesterday reports that the administration has reached a settlement with the Philippine International Air Terminals Co. (Piatco) and the German firm Fraport AG.

The two companies have sued the government before the International Center for the Settlement of International Disputes over alleged breach of contract to build terminal 3 of the Ninoy Aquino International Airport (NAIA).

They lost the contract after it was declared illegal and void by the Supreme Court last year.

In a statement, Solicitor General Alfredo Benipayo and retired Justice Florentino Feliciano, the government’s counsel at the international arbitration, branded as "totally false" allegations that the government is engaged in a "zarzuela" to delay the settlement to favor "certain interest groups" in Malacañang.

Under Administrative Order No. 96, all discussion on the terminal must be on a lawyer-to-lawyer basis –between the OSG, Feliciano, and the law firm White and Case on one hand, and the counsels of Piatco and Fraport on the other hand, the two said.

Meanwhile, the Office of the Solicitor General said Piatco has requested a meeting with Benipayo to discuss a possible resolution of the case.

"The Republic’s counsel (Benipayo) met with Piatco and Fraport officials in Washington DC to hear out their proposals," the OSG said.

"Contrary to a (newspaper) report, the government has not made any proposal for settlement with Piatco and Fraport as indeed the government does not owe anything to either of them."

The OSG said Piatco and Fraport have not submitted any settlement proposal to the government after their officials had met with Benipayo.

"The government will not allow any duplicitous, sham or unaudited payments for the terminal," the OSG said.

"The government rejects any settlement that will put to risk the safety of passengers and employees at the terminal or will require the government to pay a centavo more than the terminal’s actual and reasonable cost."

The OSG said the government has laid down three "indispensable preconditions" before considering any settlement:

• It must be ensured that the terminal is structurally sound and can be used for its intended purpose.

• It must be safe and secure.

• The actual and reasonable cost of the terminal must be independently determined and audited based on verifiable evidence.