Senators laud Fraport buyout deal

Administration and opposition senators crossed party lines yesterday in lauding the buyout deal between Frankfurt airport operator Fraport AG and Manila Hotel Corp., which now controls Philippine International Air Terminals Co. (Piatco).

Senate Minority Leader Aquilino Pimentel Jr. urged the government to immediately operate the Ninoy Aquino International Airport Terminal 3 (NAIA-3) to modernize the facilities, enhance tourism and attract more foreign investment to the country.

Pimentel issued the call in welcoming the purchase by Manila Hotel Corp. of Fraport’s 30-percent stake in Piatco, the consortium that built and completed the state-of-the-art NAIA-3 nearly two years ago.

"This is an additional benefit, because all the profits that would be earned from the investments would go into Filipino hands. At the same time, the government is saved from borrowing additional funds from outside for additional capital and for maintenance of the airport," Pimentel said.

Pro-administration Sen. Miriam Defensor-Santiago also lauded the buyout. "That’s a big sigh of relief for this country," she said.

Santiago added that the government should abide by the terms of the amicable settlements, and "should not go into this private business" because the main business of government is governance.

Sen. Juan Ponce Enrile said the resolution of the matter, to the benefit of everyone concerned, should go a long way toward restoring investor confidence in the country.

Enrile noted that the legal controversy surrounding the construction of the extensive airport terminal had dampened investors’ confidence in the Philippines.

The buyout will "ensure that all profits and benefits from the operations of the airport" will go to the government.

Airline executives hope the new development will speed up the opening of the new terminal as well as resolve the legal battle over the facility.

Talks between Piatco’s new management and the government began last Monday on their legal dispute over the mothballed terminal and to expedite the government’s efforts to get it operational by November. — With Rainier Allan Ronda, Paolo Romero