Aquino open to talks with Belgian firm

MANILA, Philippines -  The Aquino administration will try to resolve “through diplomatic channels” its problem with a P6 billion damage suit being readied by a Belgian firm in response to the government’s cancellation of the P18.7-billion Laguna Lake Rehabilitation Project.

“We decided to respond in writing, and we believe that it can be resolved through diplomatic channels,” Secretary Ricky Carandang of the Presidential Communications for Strategic Planning and Development Office said yesterday.

Aquino has called for a meeting with concerned Cabinet officials on the case of Belgian firm Baggerwerken Decloedt en Zoon (BDZ). Environment Secretary Ramon Paje, Finance Secretary Cesar Purisima, Justice Secretary Leila de Lima, Presidential Management Staff chief Julia Abad and Foreign Affairs Secretary Albert del Rosario attended the meeting.

Carandang said they discussed in the meeting a letter from the Belgian prime minister, in which the latter “indicated (his) willingness to talk about it (damage suit).”

“The (Philippine) position before was that we had a problem with the design and there were questions about how the process was evaluated by the previous administration. We are going to outline these issue to the Belgians,” he said.

“The letter indicated that they were willing to talk. So we are taking them up on that,” Carandang said. “We will send the letter, then we will wait for their response. There will probably be some discussions on the Philippine and Belgian side. We will wait for them to respond to their letter,” he said. “We will explain to them the issues that we have regarding the project,” he added.

But presidential spokesman Edwin Lacierda holds a different view.

“As far as we are concerned, there was no notice to proceed. It’s premature. That is their plea. It’s an extra-contractual plea. That is not a basis to sue us,” Lacierda, who is a lawyer, told Palace reporters in a briefing. 

Dimitry Detilleux, BDC manager for North Asia, said a case has been filed before the International Center for the Settlement of Investment Disputes (ICSID) in Washington.

But a European diplomat who requested anonymity said Belgian Ambassador Christian Meerschman and BDC officials have said no case has been filed yet against the Philippine government. Belgium currently holds the EU chairmanship.

“No case was filed yet. This is according to the Belgian ambassador and Belgian firm. The government will be informed in advance,” the diplomat said.

“Unless there’s an indication on the Philippine side to sit down with the Belgian company. We don’t know if it’s coming or not. If nothing concrete happens they’ll sue the government in an arbitration court,” the source said.

A source told The STAR that the Philippines is “going around in circles because the President already has some ideas set to cancel the contract but he is just thinking of an honorable way out.”

“The Belgians are asking if today you find contract to be not in compliance with what you want then we’re willing to calibrate it and sit down with you just to proceed with the project,” the source said.

“The main consideration here if it cancels, it’s another Fraport in the hands of the Philippines. Its trade and investments will be compromised again,” the source said referring to the German firm which put up the NAIA Terminal 3.

“This is adding up to the problem. It’s not good to add up to the trade dispute with some EU members,” the source said.

“Sometimes reputation has higher value than what we are going to save from canceling the contract,” the source added.

Detilleux has accused the Aquino administration of ignoring a plea from Belgian Prime Minister Yves Leterme for the project to proceed.

BDC is reportedly tapping the services of Allen & Overy, a Hong Kong-based law office, for its planned legal case against the Philippine government.– With Pia Lee-Brago