Noy cool to negotiated settlement of NAIA-3 row

SUBIC BAY FREEPORT, Philippines – President Aquino is cool to the proposal for a negotiated settlement with the builders of the Ninoy Aquino International Airport Terminal 3 (NAIA 3), stressing that allegations of corruption and other irregularities in the project could not be ignored.

“To leave it behind, there are so many issues that really have to be settled, among them the compensation for those who have constructed it, and there is a dispute as to what is the right compensation,” Aquino said.

He stressed that NAIA 3 still needs a lot of repair work.

“We believe that we were overpriced in the construction,” Aquino said.

“The end point is we are looking forward to resolving all of these issues but in a legal manner and consistent with our fight against alleged corruption that was attended to in the construction,” he said.

Aquino said he is committed to find a resolution to the NAIA 3 case and would want to make it operational as soon as possible to the benefit of the passengers that would be utilizing the airport.

“And there is a sense of overloading of some of our current facilities in NAIA,” Aquino also pointed out.

The Philippine International Air Terminals Co. is the consortium that built the NAIA 3 with German firm, Fraport AG as one of the investors. But Fraport was accused of violating the anti-dummy law to be able to bag the project.

German Ambassador Christian-Ludwig Weber-Lortsch called for new negotiations to finally solve the ownership dispute over the terminal after the Washington-based International Centre for Settlement of Investment Disputes (ICSID) of the World Bank ruled that Fraport could again file a case against the Philippine government to seek compensation.

In August 2007, the ICSID had ruled that Fraport could not ask for any compensation due to violation of laws in doing business in the Philippines.

“There have been a lot of dialogues between members of our administration and the German ambassador,” Aquino told reporters after the blessing and naming of two bulk carriers built by Korean shipbuilder Hanjin Heavy Industries and Construction Co.-Philippines.

He stressed that there are many issues that should be settled, including the issue of right compensation to the builders. 

Earlier, Presidential Communications Development and Strategic Planning Office Secretary Ricky Carandang said the issue should be resolved in favor of the Philippines and not of the German government.