Nayong Pilipino deal hits snag

After agreeing to pay the Nayong Pilipino Foundation Inc. (NPFI) P500-million as compensation, the Manila International Airport Authority (MIAA) has decided to allocate a huge part of the amount to the Department of Public Works and Highways (DPWH) for the construction of two access roads leading to the new Ninoy Aquino International Airport (NAIA) Terminal 3.

NPFI Executive Director Charito Planas said yesterday the MIAA can now only pay an initial P50-million for the 8.6 hectare of land the park management ceded to the airport authority for the new airport facility’s dual taxiway.

"Nabitin kami. How can we re-develop the park now?" Planas told The STAR. She added that the P450-million "will be refunded to us by the DPWH by 2004 or 2005."

"MIAA should have foreseen this," Planas said, referring to the apparent lack of funds for the construction of the new airport facility.

But MIAA General Manager Edgardo Manda explained that the airport authority is only "prioritizing (its) cash flow."

He said that the Overseas Development Assistance (ODA) fund that should have shouldered the cost for elevation of two internal access roads, one in Villamor Air Base and the other on South Superhighway, is "not yet available."

"They don’t immediately need the money anyway," Manda said, referring to the NPFI.

He added that the construction of the internal access roads are part of the "government’s obligations in its contract with (private concessionaire) Philippine International Air Terminal Co. Inc. (PIATCO)."

Manda clarified that MIAA will pay the remaining P450-million "on or before the end of 2004."

Planas said that in a meeting with Tourism Secretary Richard Gordon Thursday night, Manda "impressed on the (NPFI) board that if NAIA 3 will not open on time, the government would pay a fine of some $500,000 (to PIATCO).

"This being the case, they urgently need to come into Nayong Pilipino upon receipt of the P50-million," Planas said.

When they first heard of the new payment scheme, Planas said the NPFI board of trustees had initially wanted to resign. "It was stupid for us to agree with MIAA but later we realized that being a government agency, we had to accede," she said.

"Our only request from MIAA is to state in the memorandum of agreement that they will pay us P500-million," Planas added.

Less than a month ago, MIAA proposed to pay NPFI P300 million in "four equal installment within 12 months, with the initial payment amounting to P75-million to be paid upon signing the memorandum of agreement (MOA)."

The remaining P200 million will be paid within the succeeding four years at P50-million each year.

With this latest development, Planas said the closure of the 30-year-old park may be moved back to the end of this month and the NPFI "would have to find ways and means" to finance the construction of a new Nayong Pilipino.