Gov’t asks SC to clarify its extent of authority over NAIA-3

The government has asked the Supreme Court to clarify the extent of its authority to operate the Ninoy Aquino International Airport Terminal 3 (NAIA-3) before making payments to the builders.

Solicitor General Eduardo Antonio Nachura said the tribunal was not very clear on the acts of ownership once the government gets possession of the facility.

"We filed a manifestation seeking some kind of clarification on the writ of possession that will be issued because there are some doubts there," he said.

"We need to be sure if the writ of possession will include the authority incident to acts of ownership, such as negotiating with and entering into contracts with airline companies, etcetera.

"In case we pay we need to know if the writ of possession that will come out will give the government wide authority as owner of the terminal already."

Nachura said the Supreme Court was not able to rule on the matter before he assumed office as solicitor general.

Meanwhile, the lead counsel of the Lucio Tan-led Asia’s Emerging Dragon Co. (AEDC) urged the government yesterday to withdraw the expropriation case for NAIA-3 because it could lose some $1 billion.

Speaking to reporters at a restaurant in Greenbelt in Makati City, former Securities and Exchange Commission chairman Perfecto Yasay said the government is in danger of losing in the arbitration cases filed in Singapore and Washington by Philippine International Air Terminals Co. Inc. (Piatco) on grounds that the NAIA-3 project is clouded with issues of corruption.

"If the expropriation case continues, whether or not government will pay Piatco, $3 billion in just compensation for Terminal 3 or more, government stands to lose at least $1 billion for a terminal facility, the construction of which actually only costs about $200 million.

"If government loses in the arbitration case in Singapore, it would have to pay Piatco another $565 million, and also pay Fraport A.G. $425 million for the case in Washington, DC.

"With difficulties the Philippine government is facing, its fiscal deficit, the economic woes the people are suffering, where the hell we will get $1 billion? Government officials concerned must be very, very careful because if they allow such a thing to happen, they will have to be accountable to the Filipino people."

Yasay, who just arrived from the United States, said the expropriation case is not the proper action for the government to take because "government is expropriating a property that it already owns," he said.

"Under the law, improvements on a land belonging to another is owned by the owner of the land. Piatco is only going to end up as builder and lessee, never as owner. All the government should do is to recover possession of something that it already owns and only pay the builder actual costs of the construction, not just compensation."

Yasay said the government has a shot at winning the arbitration cases in Singapore and Washington if it withdraws the expropriation case.

"By withdrawing the expropriation case, then we are withdrawing the premise that they are the owner of this property," he said. "It will impact on the case in Washington and Singapore."

Yasay said AEDC remains committed to the NAIA-3 project and is even willing to pay Piatco as long as government recognizes its right to operate the terminal.

"We all agree that Terminal 3, if it is in fact usable, and it is safe, must be opened as soon as possible," he said.

"But when we say as soon as possible, we must make sure that all the problems and concerns must not be swept under the rug."

The government took over NAIA-3 in December 2004 after the Supreme Court voided the contract to build the facility for its questionable provisions.

Earlier, Malacañang said a court order directing the government to pay partial compensation to the consortium that built NAIA-3 should settle the controversy over ownership of the facility.

Last Tuesday, the Pasay City Regional Trial Court reiterated its order to the government to pay an initial P3 billion to Piatco after it rejected a government petition.

The P3 billion is partial compensation for the government’s seizure of NAIA-3 from Piatco in 2004.

The court is still determining the final amount of compensation.

Other shareholders in the consortium are the German firm Fraport AG, and the Japanese companies Takenaka Corp. and Asahikosan Corp.

The NAIA-3 is almost complete even as independent valuators, agreed upon by the government and Piatco, are still determining the actual value of the facility to compute the full amount of compensation to be paid the consortium.

Once the government begins the compensation process by releasing the P3 billion, which has been held in escrow since last year, the Pasay court is expected to issue a writ of execution that would formally give the government possession of the airport. — Aurea Calica, Sandy Araneta